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HQ 087506


September 28, 1990

CLA-2 CO:R:C:G 087506 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8907.10.00

Ms. Yolanda Landau
Milton Snedeker Corporation
105 Chambers Street
New York, NY 10007

RE: "Skyscape" Evacuation Chute and Attched Life Rafts

Dear Ms. Landau:

This is in reply to your letter of June 1, 1990, on behalf of Viking Life Saving Equipment (America), Inc., requesting classification of the "Skyscape" evacuation chute with attached life rafts, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). This merchandise is a product of Norway.

FACTS:

The "Skyscape" evacuation system is a composite item consisting of three attached components: (1) a metal container with winch and electric motor (to be installed on an offshore drilling rig platform); (2) a nylon webbing chute with inner and outer ropes; and (3) an inflatable life raft with three or six "getaway" rafts attached.

ISSUE:

What is the classification of the "Skyscape" evacuation chute with attached life rafts, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

The "Skyscape" evacuation chute with attached life rafts is comprised of the following components; (1) a metal container with a winch and electric motor; (2) a nylon webbing chute with inner and outer ropes; (3) a number (determined by the consumer) of attached life rafts. All components are attached, imported, and sold together as an evacuation system for use on drilling rigs.

GRI 2.(b) states, in pertinent part: "The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3."

GRI 3.(a) states, in pertinent part: "The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods, or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods."

The "Skyscape" evacuation chute with life rafts is prima facie classifiable under the following headings:

8425.31.00 Other winches; capstans: Powered by electric motor

6307.90.95 Other made up articles...: Other: Other: Other

8907.10.00 Other floating structures...: Inflatable rafts

Each applicable subheading refers to part only of the materials contained in this composite good, therefore, these subheadings are to be regarded as equally specific.

GRI 3(b) governs the classification of composite goods, goods consisting of different components and goods put up in sets for retail sale:

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) to the HTSUSA, page 4, number IX, states:

For the purposes of this Rule, composite goods made up of different components shall be taken to mean not only those in which the components are attached to each other to form a practically inseparable whole but also those with separable components, provided these components are adapted one to the other and are mutually complementary and that together they form a whole which would not normally be offered for sale in separate parts.

The components of the "Skyscape" evacuation system are attached to each other to form a practically inseparable whole, are adapted one to the other, are mutually complementary, and they form a whole that would not normally be offered for sale in separate parts.

Therefore, pursuant to GRI 3(b), it is necessary to determine the essential character (if discernable) of the "Skyscape" evacuation system. The EN to GRI 3(b), page 4, number VIII, states:

The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.

You argue that due to the revolutionary design of the chute, it is the chute that imparts the essential character of this composite good. However, your literature states that "the system will only be used once the chute is successfully down and the collection point has completely inflated." Clearly, each component has an integral role in the function of the system as a whole. Each component is very different in terms of constituent material, bulk, quantity, weight and value. However, it is Customs position that none of the components imparts the essential character of this composite good.

GRI 3(c) dictates that: "[w]hen goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration." Therefore, the "Skyscape" evacuation chute and attached life rafts is classifiable under 8907.10.00, HTSUSA, which provides for: "Other floating structures...: Inflatable rafts."

HOLDING:

The "Skyscape" evacuation chute and attached life rafts are classifiable under 8907.10.00, HTSUSA, which provides for: "Other
floating structures...: Inflatable rafts." The rate of duty is 3.8% ad valorem.

Sincerely,

John Durant, Director

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