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HQ 954927

September 22, 1993

CLA-2 CO:R:C:M 954927 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8609.00.00

Mr. Michael J. Buckley
Panalpina Inc.
P.O. Box 45405
Atlanta, GA 30320

RE: Pancake Containers; Magnetic Tape Reels; Explanatory Note 86.09; Plus Computing Machines, Inc. v. U.S.; HQ 951388; 7326.90.90

Dear Mr. Buckley:

This is in response to your letters of June 22 and August 9, 1993, on behalf of IBSM Mehiretter GMBH, to the District Director, Savannah, Georgia, concerning the classification of pancake containers under the Harmonized Tariff Schedule of the United States (HTSUS). Your letters have been referred to this office for a response.

FACTS:

The merchandise consists of pancake containers designed to hold magnetic tape reels, otherwise known as pancakes. Each container is a sectional steel structure with a sheet metal casing and holds approximately 232 pancakes. The containers can be dust- proof sealed from the front with metal doors. The inside of the containers is equipped with four parallel horizontal shafts for carrying the pancakes. The frame of the containers is equipped with holes at the bottom and pins at the top for stacking during transportation. The containers also possess lifting channels to facilitate use by a forklift truck. These channels can also be used for tie-down purposes during transportation. It is claimed that the containers are exclusively designed for transportation purposes.

The subheadings under consideration are as follows:

7326.90.90: [o]ther articles of iron or steel: [o]ther: [o]ther: [o]ther: [o]ther.

The general, column one rate of duty is 5.7 percent ad valorem.

8609.00.00: [c]ontainers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport.

Goods classifiable under this provision receive duty-free treatment.

ISSUE:

Whether the pancake containers are classifiable under subheading 7326.90.90, HTSUS, as other articles of steel, or under subheading 8609.00.00, HTSUS, as containers specially designed and equipped for carriage by one or more modes of transport.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive, are to be used to determine the proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory Note 86.09 (pp. 1421, 1422) states that:

[t]hese containers (including lift vans) are packing receptacles specially designed and equipped for carriage by one or more modes of transport (e.g., road, rail, water or air). They are equipped with fittings (hooks, rings, castors, supports, etc.) to facilitate handling and securing on the transporting vehicle, aircraft or vessel. They are thus suitable for the "door-to-door" transport of goods without intermediate repacking and, being of robust construction, are intended to be used repeatedly. . .

The heading excludes:

(a) Cases, crates, etc., which though designed for the "door-to-door" transport of goods are not specially constructed as described above to be secured to the transporting vehicle, aircraft or vessel; these are classified according to their constituent material.

In Plus Computing Machines, Inc. v. U.S., 44 CCPA 160, 167, C.A.D. 655 (1957), the term "specially constructed" was addressed. It was stated:

[t]he statement that an article is specially constructed for a particular purpose means merely that it includes particular features which adapt it for that purpose. The purpose in question need not be the sole one served by the article and may not even be the principal one. Thus snow- tread tires are specially constructed for driving in snow even though, in practice, they may seldom be used for that purpose; and armored trucks are specially constructed to give protection against bullets, even though they may never be fired upon.

It is our position that, from all the evidence provided by the importer as to the purpose of the pancake containers, they are specially designed for carriage by a mode of transport. Even if the containers can be used for in-plant storage, their principal use is for the transportation of goods from one point to another. As the importer has noted, the containers do possess particular features which adapt them for transport carriage. The channels and stacking pins facilitate the securing of the containers to a mode of transport for stability while in transit, and the containers are suitable for the "door-to-door" transport of goods without intermediate repacking. See HQ 951388, dated September 29, 1992.

Therefore, we find that the pancake containers are classifiable under subheading 8609.00.00, HTSUS.

HOLDING:

Under the authority of GRI 1, the pancake containers are classifiable under subheading 8609.00.00, HTSUS, as containers specially designed and equipped for carriage by one or more modes of transport.

Sincerely,

John Durant, Director

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