N175156

August 9, 2011

CLA-2-73:OT:RR:NC:N1:113

CATEGORY: Classification

TARIFF NO.: 7326.90.8588

Ms. Jennifer Ritzow ORBIS Corporation 1055 Corporate Center Drive Oconomowoc, WI 53066

RE: The tariff classification of steel racks/stands from China

Dear Ms. Ritzow:

In your letter dated July 14, 2011, you requested a tariff classification ruling on four models of racks/stands. A photograph for each rack/stand in condition as imported into the United States was submitted for our review. A detailed description including the dimensions for each model was also provided.

The merchandise under consideration is identified in your letter as four models of Metal Material Handling Racks including model numbers 1102801 KW2010 AERO RHUC DPF SCR, 1002804 KW2010 RHUC DPF SCR, 1002802 KW2010 VERTICAL DPF SCR and 1002800 PB SEAT RACKS. You stated that “We are supplying a customer in the United States with metal racks that we have manufactured in China…We are importing metal racks/stands for the purpose of holding automotive engines and tires. Some models are collapsible while others are always in an upright position. They are made of steel. Some are painted powder coat blue and others are galvanized. All racks are designed to be moved only with forklifts. They do not have wheels.”

Model number 1102801 KW2010 AERO RHUC DPF SCR measures approximately 78.5” X 46.5” X 80” in the upright position and collapses to 40”. Model number 1002804 KW2010 RHUC DPF SCR measures approximately 95” X 48” X 74” in the upright position and collapses to 36”. Model number 1002802 KW 2010 VERTICAL DPF SCR RACK is always in an upright position and measures approximately 96” X 46.5” X 34”. Model number 1002800 PB SEAT RACKS measures approximately 92” X 48” X 51.5” in the upright position and collapses to 27”. You stated that “The racks are material handling items used to transport & store truck components used in assembly of new trucks. These racks are custom products designed specifically for the components that will be put inside of them.” 2

You stated in your letter that you have classified the subject racks/stands in subheading 7308.90, Harmonized Tariff Schedule of the United States (HTSUS). The National Import Specialist that handles subheading 7308.90, HTSUS, indicated that “You state that you believe these racks are classifiable in subheading 7308.90, Harmonized Tariff Schedule of the United States, (HTSUS). We do not agree with your opinion because the racks are not structural in nature. Historically, such racks have not been classified as structures or parts of structures in 7308.90, HTSUS. Note the following rulings on similar racks: HQ H025853, HQ 088740, HQ 088741 and NY M80368.” Therefore, the racks/stands in question are classified under heading 7326, HTSUS, which provides for other articles of iron or steel.

The applicable subheading for the four models of steel racks/stands including model numbers 1102801 KW2010 AERO RHUC DPF SCR, 1002804 KW2010 RHUC DPF SCR, 1002802 KW2010 VERTICAL DPF SCR and 1002800 PB SEAT RACKS will be 7326.90.8588, HTSUS, which provides for other articles of iron or steel, other, other, other, other, other. The rate of duty will be 2.9 percent ad valorem.

Duty rates are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Ann Taub at 646-733-3018.

Sincerely,

Robert B. Swierupski Director, National Commodity Specialist Division