The tariff classification of a Seismic Protection Stainless Steel Anchor Bolt System from New Zealand

N305216 August 5, 2019 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.90.8688 Mr. Ronald Todd Ige R. Ige & Co. Inc. 4723 Marine Avenue Lawndale CA 90260 RE: The tariff classification of a Seismic Protection Stainless Steel Anchor Bolt System from New Zealand Dear Mr. Ige: In your letter dated July 10, 2019, on behalf of your client Onguard LLC, you requested a tariff classification ruling for a Seismic Protection Stainless Steel Anchor Bolt System. Pictures, product and technical data, and an assembly manual were submitted for our review. The product under consideration is identified in your ruling request as a Seismic Protection Stainless Steel Anchor Bolt System. The system is available in nine different sizes/models for the varying design considerations for each application. The models include OG PRO 10S, OG PRO 23S, OG PRO 23, OG PRO 33, OG PRO 51, OG PRO 81, OG PRO 117, OG PRO 172 and OG PRO Max. The system uses ductile anchors which concentrate damage from seismic loading in one small replaceable component, and provides protection to the tank wall. The Onguard anchors are welded to the tank around its base and connected to the tank’s foundation. During an earthquake they prevent the tank from overturning by holding it down while dissipating seismic energy through yielding of the anchors. The Seismic Protection Stainless Steel Anchoring Bolt System is comprised of six main components including a stainless steel casing that is welded to the vessel/tank wall, a stainless steel cap, a steel yield pin, a polyethylene sleeve, a steel coupler and a steel stud. The casing encases the other components and provides the connection point to the vessel/tank wall for welding on site. The cap seals the system from contaminates and provides the function of retaining the yield pin in position during an earthquake. The yield pin is designed to yield at a predetermined load to absorb seismic energy. The sleeve prevents buckling of the ductile yield pin. The coupler connects the yield pin with the embedment stud and uses a roll-pin at its central point to separate the two components. The stud will be embedded into the concrete slab on site. The Seismic Protection Stainless Steel Anchoring Bolt System consists of a stainless steel casing, a stainless steel cap, a steel yield pin, a polyethylene sleeve, a steel coupler and a steel stud. Section XV, Note 7(a) states that “Iron and steel, or different kinds of iron or steel, are regarded as one and the same metal.” The steel and polyethylene components are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the steel and polyethylene components of the system in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.As the Seismic Protection Stainless Steel Anchoring Bolt System is a composite good, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.” We must determine whether the steel or polyethylene component imparts the essential character to the system under consideration. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the function of the steel component that comprises the Seismic Protection Anchoring System is to prevent the tank from overturning during an earthquake by holding it down while dissipating seismic energy through yielding of the anchors. Therefore, it is the opinion of this office that the steel component imparts the essential character to the system. In accordance with GRI 3 (b), the Seismic Protection Anchoring Bolt System under consideration will be classified as an other article of steel. Therefore, the subject system is classifiable in heading 7326, HTSUS, which provides for other articles of iron or steel. The applicable subheading for the Seismic Protection Stainless Steel Anchoring Bolt System, models OG PRO 10S, OG PRO 23S, OG PRO 23, OG PRO 33, OG PRO 51, OG PRO 81, OG PRO 117, OG PRO 172 and OG PRO Max, will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, 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 the World Wide Web at https://hts.usitc.gov/current. 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 Ann Taub at ann.taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division