The tariff classification of steel shells from China

N181436 September 20, 2011 CLA-2-73:OT:RR:NC:1:117 CATEGORY: Classification TARIFF NO.: 7326.90.8588 Mr. Eric W. Hansel C.H. Powell Company 478 Wando Park Blvd. Mt. Pleasant, SC 29464 RE: The tariff classification of steel shells from China Dear Mr. Hansel: In your letter dated August 16, 2011 you requested a tariff classification ruling on behalf of your client Kordsa, Inc. The products intended to be imported are described as non-alloy steel shells which act as spools to hold and support textile material in the fabric industry. The steel shells support the final textile product and are used for inventory, storage and transport to the end client. The shells or spools consist of an outer circular pipe and an inner square pipe held together by steel reinforcement disks. The purpose of an inner square tube and an outer round tube is for the inner tube to create a square opening which allows for the rotation of the shell as the fabric is rolled onto the outside of the round tube. The reinforcement discs hold the tubes in place, specifically holding the square inner tube at the center of the round outer tube.  Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. You have suggested classification in heading 7306.69.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), other, welded, of noncircular cross section: of iron or steel of other noncircular cross section: having a wall thickness of less than 4 mm: of iron or nonalloy steel. We do not agree with that classification. Although manufactured from two tubular pieces the subject shells or spools are not in themselves pipes or tubes. They have been made up into specific identifiable articles, namely spools, which exclude them from classification as tubes or pipes in Section XV, heading 7306 HTSUS; Explanatory Note 7306 (f) noted. We have also considered classification of the shells or spools as a part of textile material machinery in Chapter 84 HTSUS. However similar items have been the subject of a prior ruling and were determined to be not classifiable as machine parts in Chapter 84 HTSUS. Bobbins, spools, cops, cones, cores, reels or similar supports of any material are precluded from classification in chapter 84. See Section XVI, Note 1(c), HTSUS. Relevant Explanatory Notes on this section note indicate that these articles are to be classifiable according to their constituent material. The constituent material for these items is nonalloy steel. The applicable subheading for the steel shells or spools will be 7326.90.8588, Harmonized Tariff Schedule of the United States (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 provided for your convenience and 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 Mary Ellen Laker at (646) 733-3020. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division