HQ 087580: Refrigerated Freight Containers; Reefers

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                          HQ 087580

                                          AUG 6 1990

            CAL-2:CO:R:C:G   087580 JAS

            CATEGORY:   Classification

            TARIFF NO.: 8609.00.0000

            Michael F. Di Croce, Esq.
            Ragan & Mason
            1156 Fifteenth Street, N.W.
            Washington, D.C. 20005

            RE:  Refrigerated Freight Containers; Reefers

            Dear Mr. Di Croce:

                 In a letter to you, dated December 6, 1989 (085296), as
            counsel for Sea-Land Service, Inc., we addressed the tariff
            status of certain refrigerated freight containers.

                 In the cited ruling, we held that the refrigerated
            containers were classifiable under the provision for containers
            specially designed and equipped for carriage by one or more
            modes of transport, in subheading 8609.00.0000, Harmonized
            tariff Schedule of the United States Annotated (HTSUSA),
            subject to entry free of duty.  However, we have reviewed the
            matter again and now believe that the ruling requires
            clarification.  In our review, we have carefully considered the
            additional comments you submitted by letter dated July 20,
            1990.

                 The material in ruling 085296 appearing under the caption
            LAW AND ANALYSIS on page 2 is superseded by the following.

                 For purposes of GRI 3(a), when two or more headings each
            refer to part only of the materials, substances or components
            contained in mixed or composite goods, those headings are to be
            regarded as being equally specific in relation to those goods,
            even if one of them gives a more complete or precise
            description of the goods.  GRI 3(b) provides in part that
            composite goods made up of different components which cannot be
            classified by reference to 3(a), shall be classified as if they















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            consisted of the component which gives them their essential
            character, insofar as this criterion is applicable.

                 The articles in question are intermodal freight containers
            to which combination refrigeration/heating units have been
            added, and which are used primarily in the refrigeration mode.
            They are composite goods for GRI 3 purposes because the
            components are adapted one to the other and are mutually
            complementary, and together they form a whole which would not
            normally be offered for sale in separate parts.

                 Essential character is the distinctive quality or
            qualities that characterize a person or thing or which serves
            to distinguish a thing from other things.  The nature of the
            components and their respective roles in relation to the use of
            the completed article are often factors to be considered in
            determining essential character.

                 Heading 8609 covers articles that are designed and
            suitable for the door-to-door transport of goods without
            intermediate repacking.  The containers of this heading are
            equipped with fittings to facilitate handling and securing on
            the transporting vehicle, aircraft or vessel.  They are often
            insulated for perishable foods or goods.  This heading is broad
            in its coverage and provides for a variety of packing
            receptacles for different types of merchandise.  The articles
            of heading 8418 are machines designed primarily to refrigerate.

                 The nature of the respective components in relation to the
            use of the completed article leads us to conclude that it was
            designed for point-to-point transport of goods, with the
            capability to refrigerate/heat those goods being subsidiary.
            We therefore conclude that the container component imparts the
            essential character to the complete unit.  Under the authority
            of GRI 3(b), therefore, the merchandise is provided for in
            heading 8609.  Actual classification is in subheading
            8609.00.0000, HTSUSA, containers specially designed and
            equipped for carriage by one or more modes of transport,
            subject to entry free of duty.

                 Our ruling to you, dated December 6, 1989 (085296), is
            modified accordingly, but is otherwise affirmed.


                                        Sincerely,



                                        John Durant, Director
                                        Commercial Rulings Division