Binding Ruling Request; Classification of an Intelsius™ reusable thermal shipping container

HQ H248716 June 27, 2014 CLA-2 OT:RR:CTF:TCM: H248716 ERB CATEGORY: Classification TARIFF NO.: 3923.10.00 Ms. Michelle Borgialli Pierce Biotechnology, Inc. 3747 N. Meridian Road Rockford, IL 61105 RE: Binding Ruling Request; Classification of an Intelsius™ reusable thermal shipping container Dear Ms. Borgialli: This is in response to your request on behalf of Pierce Biotechnology, Inc., (“Pierce”), dated August 5, 2013, to the U.S. Customs and Border Protection (“CBP”), National Commodity Specialist Division (“NCSD”) for a binding ruling on the classification of an Intelsius™ reusable thermal shipping container, under the Harmonized Tariff Schedule of the United States (“HTSUS”). Your ruling request was forwarded to this office by the NCSD for a response. No sample of the subject merchandise was included with the request, but product information, including the additional information provided in your email of January 23, 2014, as well as internet website links, were considered in our decision. FACTS: The Intelsius™ reusable thermal shipping container is composed primarily of plastic. It includes an interior four or six panel customizable plastic “bottle system” which holds specimens in place and keeps them cold. The “bottle system” is secured within a rigid exterior case, and then placed inside a custom designed cardboard box which protects the entire container. The container is designed with handles for ease of transport, and may be interlocked with other containers for secure storage. The purpose of the container is to transport high value temperature sensitive drug products or other similar specimens. The rigid exterior case is composed of polypropylene and includes a liner and X-Micron sheet which is also composed of polypropylene. The “bottle system” is made of high density polyethylene with a closure made of acetal. The “bottle system” contains a cooling material designed to keep the payload in transit at a temperature between +2°C and + 8° C for up to 170 hours, inside vacuum insulated panels made of polyamide laminate and fumed silica. There are four models that range in size to accommodate payloads from 4.4 Liters to 25.8 Liters in volume, and vary accordingly in payload space, external dimensions and mass. The Intelsius™ reusable thermal shipping container is illustrated below:
See http://www.intelsius.com/orca2.0 In HQ H247720, dated December 6, 2013, and issued to Pierce, CBP determined that the Intelsius™ reusable thermal shipping container is not an Instrument of International Traffic (“IIT”) within the meaning of 19 U.S.C. §1322(a) and 19 C.F.R. §10.41a(a)(1), and thus does not qualify for entry free and duty free treatment under subheading 9803.00.50, HTSUS. ISSUE: Whether the subject merchandise is classified in subheading 3923.10, HTSUS, which provides for “Articles for the conveyance or packing of goods, of plastics; . . . Boxes, cases, crates and similar articles,” or in subheading 3923.30, HTSUS, which provides for “Articles for the conveyance or packing of goods, of plastics; … Carboys, bottles, flasks and similar articles”. LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may be then applied in order. The HTSUS provisions under consideration in this case are as follows: 3923 Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: 3923.10 Boxes, cases, crates and similar articles * * * 3923.30 Carboys, bottles, flasks and similar articles There is no dispute that the subject Intelsius™ reusable thermal shipping container is described by heading 3923, HTSUS, because it is, eo nomine, an article for the conveyance or packing of goods, of plastic. At issue is the correct subheading under subheading 3923, HTSUS. As such, the classification of the merchandise is governed by GRI 6, which states: For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires. Pierce suggests that the applicable subheading for this product is subheading 3923.30, HTSUS, which provides for “Articles for the conveyance or packing of goods, of plastics; …Carboys, bottles, flasks and similar articles”. However, the text of subheading 3923.30, HTSUS, does not describe the subject container. It is not a carboy, bottle, flask, or similar article. CBP has issued rulings classifying products described as carboys, bottles, or flasks, and these differ in a meaningful way from the subject reusable thermal shipping container. For instance, merchandise classified in subheading 3923.30, HTSUS, hold liquids directly inside them. This was discussed in Headquarters Ruling (HQ) 954863, dated July 14, 1994, which classified a “jerry can” container (similar to a carboy) designed to directly hold flammable liquids, for conveyance and short or long term storage, in subheading 3923.30, HTSUS. In that ruling, CBP noted: “All these items may hold liquids”. CBP thus held, “containers…designed to hold… liquids… so that they may be transported and stored in a safe and convenient manner…are classifiable” therein. Similarly, in New York Ruling (NY) N069641, dated August 11, 2009, CBP classified various plastic containers and discussed both subheadings at issue here. There, CBP held that a molded plastic bottle with a threaded neck suitable to be closed with a similarly threaded cap, used to store and transport anti-aging skin fluid directly within, under subheading 3923.30, HTSUS. But CBP also held that a molded plastic lidded rectangular makeup case called a “pallet case,” which incorporated 22 circular depressions to be filled after importation with pans of cosmetics, was classified under subheading 3923.10, HTSUS, because it held the cosmetics, but did not store them directly within. The so-called “bottle system” within the Intelsius™ reusable thermal shipping container at issue here is not a bottle as that term is understood under the text of subheading 3923.30, HTSUS, nor is it similar to the above examples of bottles. It is not a tubular shaped product used for holding liquids, closed on one end, and open on the other end with a threaded neck to secure a screw-type closure. The “bottle system” at issue does not hold liquids directly, as a bottle, carboy or flask does. Rather, the Intelsius™ reusable thermal shipping container’s “bottle system” merely supports the payload in place and keeps it cold. The Intelsius™ reusable thermal shipping container is described by the text of subheading 3923.10, HTSUS. It is a box or case for the conveyance or packing of goods, of plastics. Therefore, it is properly classified under subheading 3923.10, HTSUS, which provides for, “Articles for the conveyance or packing of goods, of plastics; . . .Boxes, cases, crates and similar articles.” This finding is consistent with prior CBP rulings. In NY N184815, dated October 13, 2011, CBP considered the classification of a product called “UltiGuard”, a molded plastic container for the packing and disposal of medical sharps, such as syringes or pen needles, for use by persons with diabetes. The “UltiGuard” was imported unassembled as three plastic pieces: a base container, a lid with a dial and receptacle, and a board to divide the storage and waste compartments. After importation the three pieces would be assembled and stocked with insulin syringes or pen needles. The “UltiGuard” itself did not hold the insulin or relevant medication. Rather, it was held to be a case designed to store and transport the syringes and pen needles. As such, CBP classified this product under subheading 3923.10, HTSUS. See also NY N177975, dated August 26, 2011, which classified silicon wafer cassette carriers under subheading 3923.10, HTSUS and NY N145117, dated February 23, 2011, which classified empty plastic containers designed to hold steel stamps/punches for hand-held hammer struck appliances, which, upon importation, would be fitted with domestically produced stamps and then sold to consumers at retail, under subheading 3923.10, HTSUS. HOLDING: By application of GRI 1, the Intelsius™ reusable thermal shipping container is classified in heading 3923, HTSUS. It is specifically provided for under subheading 3923.10.00, HTSUS, which provides for “Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Boxes, cases, crates and similar articles.” The 2014 column one, general rate of duty is 3 percent ad valorem. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov. A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction. Sincerely, Ieva K. O’Rourke, Chief Tariff Classification and Marking Branch