Steel Doors; Foreign Trade Zone; Nonprivileged articles; 19 CFR 146.42 and 146.65(a)(2); 19 CFR 10.301 - 10.311

HQ 954183 June 14, 1993 CLA-2 CO:R:C:M 954183 DWS CATEGORY: Classification TARIFF NO.: 7308.30.50 Mr. William J. LeClair Trans-Border Customs Services, Inc. One Trans-Border Drive P.O. Box 800 Champlain, NY 12919 RE: Steel Doors; Foreign Trade Zone; Nonprivileged articles; 19 CFR 146.42 and 146.65(a)(2); 19 CFR 10.301 - 10.311 Dear Mr. LeClair: This is in response to your letter of May 4, 1993, on behalf of Ali-Porte, concerning the classification of steel doors under the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The merchandise consists of hot dipped galvanized steel panels cut to specific dimensions, rigid urethane or polystyrene insulation, door handles, locks and hinges, all articles of Canadian origin. The components will be admitted into Foreign Trade Zone (FTZ) #54 in nonprivileged foreign status. While in the FTZ, the steel panels will be punched, drilled, fabricated, and then combined with the other articles to form steel doors. ISSUE: Whether the steel doors, created from nonprivileged Canadian articles in an FTZ, are classifiable under subheading 7308.30.50, HTSUS, as other doors? 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. Subheading 7308.30.50, HTSUS, provides for: "[d]oors, windows and their frames and thresholds for doors: [o]ther." Nonprivileged foreign status is a residual category for merchandise which does not have privileged or zone-restricted status. Articles composed entirely of or derived entirely from nonprivileged merchandise are classified and appraised in their condition at the time of constructive transfer to the Customs territory for consumption. See sections 146.42 and 146.65(a)(2), Customs Regulations [19 CFR 146.42 and 146.65(a)(2)]. Therefore, because the steel doors are created from nonprivileged merchandise in an FTZ, they are classifiable as other doors under subheading 7308.30.50, HTSUS. HOLDING: The steel doors are classifiable under subheading 7308.30.50, HTSUS, as other doors. Goods classifiable under this provision, upon meeting the requirements of sections 10.301 - 10.311, Customs Regulations (19 CFR 10.301 - 10.311), are dutiable at 1.2 percent ad valorem under the U.S.-Canada Free-Trade Agreement. Sincerely, John Durant, Director