H342569

HQ H342569 December 19, 2024 OT:RR:CTF:EMAIN H342569 DSR CATEGORY: Classification TARIFF NO: 8609.00.00 Alexander D. Chinoy Covington & Burling LLP One CityCenter 850 10th Street, NW Washington, DC 20001-4956 RE: Tariff classification of reusable transport tanks Dear Mr. Chinoy: This letter is in reply to your August 19, 2024, request for a binding ruling concerning the tariff classification of 120-liter and 300-liter reusable transport tanks under the Harmonized Tariff Schedule of the United States (“HTSUS)”. Your request was forwarded by the National Commodity Specialist Division (“NCSD”) in New York to this office for a response. You have asked that certain information submitted in connection with this request be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The specified items will not be released to the public and will be withheld from the published version of this decision. FACTS: The products at issue are certain tanks primarily used to repeatedly transport liquid drug materials and medicines. The tanks may also be used to store such substances, or they may be shipped empty between global manufacturing sites, ports of destination, and storage facilities. The tanks have liquid capacities of 120-liters and 300-liters. The actual total capacities of the tanks exceed 120-liters and 300-liters because both versions of the tanks include additional capacity for air in order to permit expansion of liquids when frozen. The tanks are composed of either stainless steel or Hastelloy®. Each tank is double-walled, and the tanks’ insulation jackets lie within the tanks’ bottom walls. The tanks are further equipped with inner coils through which chilled silicone is pumped to freeze the contents of the tanks before importation into the United States. The freezing silicone is pumped by an external skid at the site of export before transit. The liquids physically touch the exterior of the tank coils but do not touch the silicone that circulates through the coils. The tanks do not themselves have the capability to freeze their contents – the tanks must be connected to the external skids that dispense chilled silicone fluid. The skids are permanently located at the sites from which drug substances are exported, and do not travel with the tanks. Once the freezing process is complete, the silicone fluid is pumped out of the tank for storage elsewhere at the site of export. After importation, the tanks are connected to external thawing skids located at the delivery site. Heated silicone fluid is then piped from the external skids through the tanks’ coils and between the tank walls and recirculated through the tanks. The silicone fluid is piped out when the thawing process is complete. The tanks have no independent functionality for cooling and, when filled with liquids must be transported in a refrigerated truck, container, or other conveyances. The 120-liter tanks are wheeled directly onto trucks or into other conveyances via integrated heavy-duty casters attached to the bottom of the tanks. The 300-liter tanks are lifted and moved using integrated forklift skid channels attached to the bottom of the tanks. Both versions of the tanks also contain substantial side handles that serve as anchor points for tie-down straps that secure the tanks once loaded onto conveyances. ISSUE: Whether the reusable tanks are classified under heading 7309, HTSUS; heading 7310, HTSUS; heading 8419, HTSUS; or heading 8609, HTSUS. LAW AND ANALYSIS: Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all classification purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The 2024 HTSUS provisions under consideration are as follows: Note 1(g) to Section XV (Chapters 72 – 83) provides as follows: This section does not cover: (g) Assembled railway or tramway track (heading 8608) or other articles of section XVII [Chapters 86 – 89] (vehicles, ships and boats, aircraft). * * * 7309.00.00 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment. * * * 7310 Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment. * * * Note 1 (l) to Section XVI (Chapters 84 – 85) provides as follows: This section does not cover: (l) Articles of section XVII (Chapters 86 – 89). * * * 8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof. * * * 8609.00.00 Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport. * * * The relevant provisions for this merchandise are in Section XV (tanks not exceeding 300 liters in heading 7309, HTSUS, and tanks exceeding 300 liters in heading 7310, HTSUS), Section XVI (machinery for cooling in heading 8419, HTSUS), and Section XVII (containers designed for carriage by one or modes of transport in heading 8609, HTSUS). Note 1(g) to Section XV and Note 1(l) to Section XVI both state that articles classifiable in Section XVII are excluded from classification therein. Therefore, we must first determine whether the instant transport tanks are classifiable within Section XVII in heading 8609, HTSUS. Heading 8609, HTSUS, covers “Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport.” When interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). EN 86.09 describe the articles of heading 8609, HTSUS, as the following: These containers (including lift vans) are packing receptacles specially designed and equipped for carriage by one or more modes of transport (e.g., road, rail, water or air). They are equipped with fittings (hooks, rings, castors, supports, etc.) to facilitate handling and securing on the transporting vehicle, aircraft or vessel. They are thus suitable for the “door to door” transport of goods without intermediate repacking and, being of robust construction, are intended to be used repeatedly. The instant transport tanks are packing receptacles specially designed for carriage by certain modes of transport. For the 120-liter tanks, they are wheeled directly onto

Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all classification purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The 2024 HTSUS provisions under consideration are as follows:Note 1(g) to Section XV (Chapters 72 – 83) provides as follows:This section does not cover:(g) Assembled railway or tramway track (heading 8608) or other articles of section XVII [Chapters 86 – 89] (vehicles, ships and boats, aircraft).* * *7309.00.00 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment.* * *7310 Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment.* * *Note 1 (l) to Section XVI (Chapters 84 – 85) provides as follows:This section does not cover: (l) Articles of section XVII (Chapters 86 – 89).* * *8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of mat