us-cbp-cross-rulings-hq-083331•HQ 083331: Classification of insulated composite panels
HQ 083331: Classification of insulated composite panels
us-cbp-cross-rulings-hq-083331HQ 083331: Classification of insulated composite panelsGuidance
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 083331
May 2, 1989
CLA-2 CO:R:C:G 083331 VEA
CATEGORY: Classification
TARIFF NO.: 7308.90.90
Mr. Robert Keller
Trans-National Trade Development Corp.
2 Dag Hammarskjold Plaza
New York, New York 10017
RE: Classification of insulated composite panels
Dear Mr. Keller:
In a letter to our New York office dated November 8,
1989, you requested a ruling on the tariff classification of
foam core insulating composite panels imported from Spain,
under the Harmonized Tariff Schedule (HTS).
FACTS:
The merchandise in question consists of plastic foam
core insulating composite panels manufactured by Perfrisa, a
company in Spain. These panels consist of two steel sheets (an
internal and external sheet, which are cold-rolled from pre-
finished steel coils) and a plastic foam center (rigid
polyurethane foam or polyisocyanurate foam). The steel sheets
are 26 ga. hot dipped galvanized G-90 specification meeting
ASTM-A-525, and are finished with one of the following
coatings: PVF-2 (Kynar) silicone polyester color coating, PVC
(Plastisol), or galvanized. The rigid polyurethane foam or
polyisocyanurate foam serves as insulation and fills the space
between the metal sheets. The panels are attached with a
special joint and clamp system, and all the joints and fastners
are concealed and protected by snap-on capping pieces. The
joint capping pieces are 22 ga. hot-dipped galvanized G-90
steel sheet meeting specification ASTM-A-525, with the same
finishes as the external and internal sheets. The panels are
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approximately three feet wide. Their thickness varies from one
and three-eights inches to six inches, depending on the desired
insulation, and they are usually from 3 to 38 feet long.
These panels are used in various buildings requiring
insulation. You argue that they should be classified in
subheading 4411.29.20 as laminated boards bonded in whole or in
part, or impregnated, with synthetic resins and dutiable at a
rate of 2.9c/kg plus 2.3%, or in heading 3925 as builders'
wares of plastics. Our New York office classified the
merchandise under subheading 7308.90.90 as parts of structures
(File # 834289).
This inquiry has been submitted to Headquarters for a
proper tariff classification.
ISSUE:
Whether the composite insulated panels are properly
classified as laminated boards bonded in whole or in part in
subheading 4411.29.20 and dutiable at a rate of 2.9c/kg plus
2.3% percent ad valorem; as builders' wares of plastics in
subheading 3925.30.50 and dutiable at a rate of 5.3 percent ad
valorem; or as structures in subheading 7308.90.9090 and
subject to a duty rate of 5.7 percent ad valorem.
LAW AND ANALYSIS:
The General Rules of Interpertation (GRI's) govern
classification under the Harmonized Tariff Schedule. According
to GRI 1, the primary consideration in determining whether
merchandise should be classified in a heading should be given
to the language of the heading and to any relevant chapter or
section notes. The headings at issue in this case include:
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4411 Fiberboard of wood or other ligneous
materials whether or not bonded with
resins or other organic substances:
* * * * * * *
4411.29 Other:
Tongued, grooved or rabbetted
continuously along any of its
edges and dedicated for use in
the construction of walls, ceil-
ings or other parts of buildings:
* * * * * *
4411.29.20 Laminated boards bonded in
whole or in part, or impreg-
nated, with synthetic resins.
* * * * * *
3925 Builders' ware of plastics, not elsewhere
specified or included:
* * * * * *
3925.30.50 Other
* * * * * *
7308 Structures (excluding prefabricated buildings
of heading 9406) and parts of structures (for
example, bridges and bridge sections, lock
gates, towers, lattice masts, roofs, roofing
frameworks, doors and windows and their frames
and thresholds for doors, shutters, balustrades,
pillars and columns) of iron or steel; plates,
rods, angles, shapes, sections,
tubes and the like, prepared for use in
structures, of iron or steel:
* * * * * *
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7308.90.90 Other
* * * * * *
7308.90.9090 Other
Under GRI 1, the merchandise at issue in this case
cannot be classified in heading 4411. To qualify for
classification in chapter 44, an article must be made of wood,
or a wood-related product. The Explanatory Notes, the official
interpretation of the HTS at the international level, although
not legally binding, provide some guidance on interpreting
provisions under the HTS and also confirm that the items
classified in heading 4411 are made of wood. The Explanatory
Notes to heading 4411 state that fiberboard is most often
manufactured from wood chips which have been mechanically
defibred (defibrated) or steam exploded or from other defibred
ligno-cellulosic material.
The article in this case is not a wood, or a wood-
related product. The panels are made of two 1/16 inch steel
sheets and a plastic foam center and, therefore does not meet
the primary requirement for classification in heading 4411.
The importer also argues that the composite panels
qualify as builders' ware of plastics, classifiable in heading
3925. To be classified in this heading, an article must be a
builders' ware made of plastic and not included in any other
provision. As sections for walls and roofs of buildings, these
panels are builder's wares. Even though the panels in this
case are composed of a plastic foam center, they are also
composed of steel components. Heading 7308 provides for
structures and parts of structures made of iron and steel.
Therefore, there are two headings, which describe the panels,
but each heading refers to only one of the materials in the
panel. Under GRI 2(b), the classification of goods consisting
of more than one material or substance shall be according to
the principles of GRI 3.
GRI 3(a) directs us to 3(b). According to 3(b),
mixtures and composite goods consisting of different materials,
or made up of different components, shall be classified as if
they consisted of the material or component which gives them
their essential
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character. The factor that determines the essential character
of an article varies between the different kinds of articles.
It may be the nature of the material or component, its weight,
value, bulk, or quantity, or its role in relation to the use of
the goods.
The panels at issue in this case consist of four parts:
the external steel sheet, the internal steel sheet, the plastic
foam center and the special joint and clamp system made of
steel. The importer argues that the plastic foam center gives
the composite panels their essential character, because it
comprises a larger part of the cost of the finished product,
represents a larger volume of the finished product, and its
thickness determines the thermal values of the panel. The
combined plastic foam cost is 30% of the finished product,
while the steel cost is only 15%.
We agree with the importer that these factors are to be
considered in assessing essential character. However, they are
not dispositive of the issue in this case. The role that the
steel sheets and the steel fastners play in relation to the use
of the panel suggests that the steel components give the panels
their essential character. The panels comprise four parts,
three of which are steel components, i.e. the external steel
sheet, the internal steel sheet, and the special joint clamp
system. Clearly, the steel components provide the bulk of the
product. The quantity of the plastic foam in each panel is
determined by the individual purchaser's specification
depending on the desired level of insulation, and can vary from
as little as one inch to as much as six inches. The
steel sheets provide the exterior and interior walls of the
structure, and also give the panels their outward appearance.
Moreover, the panel is only able to function as a panel if its
three key parts are connected. The joint capping piece, the
connector, also made of steel performs that function. Under
these facts, the steel components give the composite panels
their essential character.
Based on the facts presented in this case and the
language of heading 7308, it is the appropriate heading for
classifying the composite panels. To be classified in this
heading, an article must one, be a structure, or a part of a
structure; and two, be made of iron and steel. There are no
relevant section or chapter notes under chapter 73. The
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Explanatory Notes to heading 7308 note that these structures
are made up from bars, rods, tubes, angles, shapes, sections,
sheets, plates, wide flats including so-called universal
plates, hoop, strip forgings or castings, by riveting, bolting,
or welding; and once they are put in a position, they
generally remain in that position.
The composite panels at issue have these
characteristics. They are made of two 26 ga. hot-dipped
galvanized steel sheets. After the steel sheets are put
together to form the panel, these panels make up the interior
and exterior walls of the structures, and thus remain in a
fixed position. Since it has been established that the steel
components give these panels their essential character, they
meet the requirement that they be made of iron or steel.
HOLDING:
The composite insulated panels are properly classified
classified as structures in heading 7308, subheading
7308.90.9090 and subject to a duty rate of 5.7 percent ad
valorem. Articles classified in heading 7308 require an
original valid Export Certificate to enter the Commerce of the
United States. If you need additional information regarding
this requirement, you should contact the Office of Agreements
Compliance, Department of Commerce, at 14th and Constitution
Ave., N.W., Washington, D.C. 20230 (202-377-4037).
Sincerely,
John Durant, Director
Commercial Rulings Division
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