HQ 082708: Tariff Classification of Steel Containers imported from Mexico

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 082708

                                    March 30, 1989

            CLA-2 CO:R:CV:G 082708 VEA

            CATEGORY:  Classification

            TARIFF NO.:  7326.90.90, 7309.00.00

            Michael Melideo, President
            Consolidated Fabricators Corp.
            14620 Arminta Street
            Van Nuys, California 91402

            RE:    Tariff Classification of Steel Containers imported from
                   Mexico

            Dear Mr. Melideo:

                   This letter is in response to your inquiry dated August
            15, 1988, requesting the proper tariff classification of steel
            storage containers imported from Mexico, under the Harmonized
            Tariff Schedule (HTS).

            FACTS:

                   The merchandise in question consists of four steel
            storage containers designed to hold scrap, garbage, tools and
            equipment, and rubbish.  The information submitted with the
            request states that the containers were made from steel sheets
            exported from the United States into Mexico under the
            Maquiladora In-Bond Program.  The steel sheets undergo a series
            of manufacturing operations at Consolidated's plant in Mexico,
            which transform them into containers.  These operations include
            forming the steel sheets into container parts and assembling
            the container parts to form a garbage, rubbish or storage
            container.  The four containers at issue include a scrap metal
            container, which has various stacking capabilities; a tilt
            hopper dump design container; a storage body container used at
            construction and other work sites to hold work tools and other
            implements; and a roll off container (rubbish and scrap
            container).  The roll off container can be crane lifted or
            winched drawn on to flatbed trucks.



















                                         - 2 -


                   This inquiry was submitted to Headquarters for a proper
            tariff classification and a determination of whether the
            merchandise is substantially transformed in Mexico.  The latter
            issue was answered in our ruling of March 14, 1989,
            (File # 555111).

            ISSUE:

                   Whether steel storage containers are properly classified
            in heading 7309, HTS, as reservoirs, tanks, vats and similar
            containers, or in heading 7326, HTS, as other articles of iron
            or steel.

            LAW AND ANALYSIS:

                   The General Rules of Interpretation (GRI's) govern
            classification under the Harmonized Tariff Schedule of the
            United States (HTS). According to GRI 1, the primary
            consideration in determining whether an article should be
            classified in a particular 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:


                   7309     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.

                   *        *        *        *       *        *         *

                   7326     Other articles of iron or steel:


                   Pursuant to GRI 1, the containers in this case are
            properly classifiable in heading 7309.  To qualify for
            classification in this heading, a container must first, be a
            reservoir, tank, vat, or similar container used to store any
            material and second, it must be made of iron or steel with a
            capacity not exceeding 300 liters. The articles at issue in
            this case, containers, are expressly provided for in heading
            7309.  They are designed to store materials (scrap, garbage,
            tools and equipment, and rubbish) and are made of iron and
            steel.













                                         - 3 -


                   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.  The Explanatory Notes for heading 7309 also confirm
            that these containers should be classified in 7309.  They
            suggest that this heading  was intended to apply to containers
            designed to store both solids and liquids.  The Explanatory
            Notes state that 7309 covers containers for any material other
            than compressed or liquefied gas.  A list of the types of
            containers classified in the heading include: petrol or oil
            reservoirs; vats used in malt-houses for soaking barley;
            fermentation vats for liquids (wine, beer, etc.), decanting or
            clarifying vats for liquids of all kinds; vats for tempering
            and annealing metal goods; water storage tanks; and containers
            for solids.

                   Since classification in this case can be made based on
            the language of heading 7309, it is unnecessary to look to
            heading 7326.

            Holding:

                   Steel storage containers are properly classified as
            reservoirs, tanks, vats and similar containers in heading 7309,
            subheading 7309.00.00.

                                       Sincerely,



                                       John Durant, Director
                                       Commercial Rulings Divison