Displays, billboard

HQ 953671 July 2, 1993 CLA-2 CO:R:C:M 953671 DFC CATEGORY: Classification TARIFF NO.: 8479.89.90 RE: Displays, billboard Mr. Allen Raulston Action Graphix 2409 Industrial Dr. Jonesboro, AR 72401 Dear Mr. Raulston: In a letter received by this office on March 18, 1993, you inquired as to the tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS), of Tri-Action billboard displays. FACTS: Billboard displays used by advertising and billboard companies are comprised of 10 and 12 gauge steel framework louvers made of triangular shaped aluminum extrusions, which allow display materials to be inserted into their slotted areas. Depending on the size of the display, it may use 1 to 4 Baldor 1/4 hp. motors. The triangular shaped louvers and motor(s) allow the billboard to display 3 different advertisements or signs. You claim that the Tri-Action billboard display is properly classifiable under subheading 7308.90.90, HTSUS, which provides for structures (excluding prefabricated buildings of heading 9406) of iron or steel, other, other. The applicable rate of duty for this provision is 5.7% ad valorem. However, inasmuch as the article is a mechanical appliance, heading 8479, HTSUS, which provides for machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, must be considered. ISSUE: Is the billboard display classifiable as a structure of iron or steel under subheading 7308.90.90, HTSUS, or is it classifiable under heading 8479, HTSUS, as machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter? -2- LAW AND ANALYSIS: Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1 provides that "classification shall be determined according to the terms of the headings and any relative section or chapter notes, and, provided such headings or notes do not otherwise require, according to [the remaining GRI's taken in order]." In other words, classification is governed first by the terms of the headings of the tariff and any relative section or chapter notes. Section XV, note 1(f), HTSUS, reads, as follows: 1. This section does not cover: (f) Articles of section XVI (machinery, mechanical appliances and electrical goods): Following the above-cited note, the billboard display is not classifiable as a structure of iron or steel under subheading 7308.90.90, HTSUS (section XV), inasmuch as it is a mechanical appliance provided for in heading 8479, HTSUS (section XVI). HOLDING: The Tri-Action billboard display is classifiable under subheading 8479.89.90, HTSUS, which provides for mechanical appliances having individual functions, not specified or included elsewhere in this chapter, other, other. The applicable rate of duty for this provision is 3.7% ad valorem. Sincerely, John Durant, Director Commercial Rulings Division