HQ 083609: Components for a Mobile Rack Storage System

us-cbp-cross-rulings-hq-083609HQ 083609: Components for a Mobile Rack Storage SystemGuidance

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.





                                       HQ 083609


                                       June 6, 1989

            CLA-2:CO:R:C:G 083609 JAS

            CATEGORY:  Classification

            TARIFF NO.:  8428.90.0060; 8431.39.0090

            Mr. Jim H. McLain
            STORAX, Inc.
            5421 Beaumont Center Blvd.
            Tampa, Florida 33634

            RE:  Components for a Mobile Rack Storage System

            Dear Mr. McLain:

                 In your letter of February 2, 1989, you inquire as to the
            tariff classification of components for the STORAX mobile rack
            storage system from the U.K.  Our ruling follows.

            FACTS:

                 Descriptive literature you submitted describes the system
            as being used in warehouses and industrial settings to condense
            a static storage system into a smaller space with one movable
            aisle taking the place of several fixed aisles.  A complete
            system consists of a storage rack superstructure mounted on
            mobile base units, a rail or track system that these base units
            run on, and electrical controls for the system.  The
            superstructure is not part of this ruling request.

                 The rail/track system is imported separately and is
            unassembled.  It consists of rail sections and leveling and
            aligning components.  The rail sections are outside guide rails
            and interior rolling rails, cut to customer-ordered lengths not
            exceeding 6 meters, with ends cut at 45 degree angles.  A
            series of drilled plates, clamps and braces, together with
            bolts and nuts, will be permanently embedded in the concrete
            floor of the warehouse to align and stabilize the rails.

                 A mobile base unit consists of a steel frame, cross
            bracing, safety sweeps (steel sections attached to either side
            of the frame by a hanger assembly that stop the base units from
            moving upon contact with persons or objects), and motorized
















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            wheel units consisting of flanged wheels for rolling on the
            outer guide rails and nonflanged wheels for rolling along the
            top of the interior rolling rails.  These nonflanged wheels are
            notched on the outside to mesh with the gears of a 1/2 hp.
            reduction motor with electric brake, which is a part of the
            wheel unit.  The mobile base units may be imported unassembled.

                 The electrical controls will be imported in the same
            shipment with the mobile base units.  These controls consist of
            switches and microswitches, remote control panels (sometimes
            called push-button stations) designed to control the mobile
            bases from fork lifts, and control cabinets.  These cabinets
            have microprocessor units installed, together with relays,
            fuses, electrical switching terminals and ribbon connectors.
            All wiring will be sourced domestically.

            ISSUE:

                 Are components of the STORAX system imported in the same
            shipment classifiable together or separately; are they
            classifiable as handling equipment, as parts of handling
            equipment, or under other tariff provisions?

            LAW AND ANALYSIS:

                 If all the components of a complete STORAX system were to
            be imported in the same shipment they would be classifiable
            under the provision for other lifting, handling, loading or
            unloading machinery, in subheading 8428.90.0060, Harmonized
            Tariff Schedule of the United States Annotated (HTSUSA).

                 In accordance with Section XVI, Note 2(b), HTSUSA, which
            governs the classification of merchandise under Chapter 84,
            parts suitable for use solely or principally with a particular
            kind of machine, or with a number of machines of the same
            heading are to be classified with the machines of that kind.
            From the information submitted, we conclude that the rail/track
            system constitutes parts suitable for use solely or principally
            with handling machinery of heading 8428.  Accordingly, this
            merchandise is classifiable under the provision for other parts
            suitable for use solely or principally with the machinery of
            heading 8428, in subheading 8431.39.0090, HTSUSA.  The rate of
            duty is 2 percent ad valorem.



















                                     - 3 -


                 In accordance with Section XVI, Note 4, HTSUSA, where a
            machine consists of individual components intended to
            contribute together to a clearly defined function covered by
            one of the headings in Chapter 84 or Chapter 85, the whole is
            to be classified in the heading appropriate to that function.
            In our opinion, the mobile base units imported together with
            their electrical controls contribute together to perform a
            handling function appropriate to machines classifiable in
            heading 8428.  Mobile base units and their electrical controls
            are classifiable together as a functional unit in accordance
            with Note 4.

                 Further, General Rule of Interpretation 2(a), HTSUSA,
            states in part that any reference in a heading to an article
            shall be taken to include a reference to that article
            incomplete or unfinished, provided that, as entered, the
            incomplete or unfinished article has the essential character of
            the complete or finished article.  In our opinion, the mobile
            base units and their electrical controls constitute the
            essential character of a complete STORAX mobile rack storage
            system because they provide the system's mobility and the
            structural strength for the superstructure.  Mobile base units
            and electrical controls imported in the same shipment are
            therefore classifiable as other handling machinery, in
            subheading 8428.90.0060, HTSUSA.  The rate of duty is 2 percent
            ad valorem.

            HOLDING:

                 The rail/track system for the STORAX mobile rack storage
            system is classifiable in subheading 8431.39.0090, HTSUSA, as
            other parts suitable for use solely or principally with the
            machinery of headings 8425 to 8430.  Mobile base units and
            their electrical controls imported in the same shipment are
            classifiable in subheading 8428.90.0060, HTSUSA, as other
            handling machinery.


                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division










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