Protest No. 3304-91-100006; Used Lead-Acid Storage Batteries; Section XV, Note 6(a); GRI 3(c); 7802.00.00

HQ 951326 May 29, 1992 CLA-2 CO:R:C:M 951326 DWS CATEGORY: Classification TARIFF NO.: 8507.10.00; 8507.20.00 District Director U.S. Customs Service 300 Second Avenue, South Great Falls, MT 59401 RE: Protest No. 3304-91-100006; Used Lead-Acid Storage Batteries; Section XV, Note 6(a); GRI 3(c); 7802.00.00 Dear Sir: This is our response on Application for Further Review of Protest No. 3304-91-100006, dated March 22, 1991, concerning your action in classifying and assessing duty on used lead-acid storage batteries under the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The merchandise consists of used lead-acid storage batteries imported from Canada. At the time of importation, the batteries were in a complete condition and stacked on pallets for shipping. The importer states that the batteries were broken and, after being imported into the United States, were sent to firms for the recovery of metal. ISSUE: What is the proper classification of the lead-acid storage batteries under the HTSUS? 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. The merchandise was entered under subheading 7802.00.00, HTSUS, which provides for: "[l]ead waste and scrap." However, the merchandise was liquidated under subheading 8507.10.00, HTSUS, which provides for: "[l]ead-acid storage batteries, of a kind used for starting piston engines", or under subheading 8507.20.00, HTSUS, which provides for: "[o]ther lead-acid storage batteries." Section XV, note 6(a), HTSUS, defines "waste and scrap" as "[m]etal waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons." For tariff classification purposes, it is our position that the subject batteries, entered in a complete condition, are lead waste and scrap as defined in section XV, note 6(a), HTSUS. We also find that, as imported in a complete condition, the merchandise consists of batteries. It is our position that headings 7802 and 8507, HTSUS, are equally specific with regard to the classification of the batteries. Because headings 7802 and 8507, HTSUS, are equally specific, we must consult GRI 3(c). It states 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. Consequently, under GRI 3(c), the batteries are classifiable under heading 8507, HTSUS. HOLDING: The lead-acid storage batteries are classifiable either under subheading 8507.10.00, HTSUS, or under subheading 8507.20.00, HTSUS, depending on their type. The protest should be denied. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest. Sincerely, John Durant, Director Commercial Rulings Division