us-cbp-cross-rulings-hq-084048•HQ 084048: Modular insulating wall panels
HQ 084048: Modular insulating wall panels
us-cbp-cross-rulings-hq-084048HQ 084048: Modular insulating wall panelsGuidance
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 084048
July 19, 1989
CLA-2 CO:R:C:G 084048 VEA
CATEGORY: Classification
TARIFF NO.: 3926.90.90
Allen E. Smith
Allen E. Smith and Associates
470 McAllen National Bank
McAllen, Texas 78503
RE: Modular insulating wall panels
Dear Mr. Smith:
Your memorandum of March 21, 1989, requests
reconsideration on behalf of your client, Murray Drywall &
Insulation of Texas, Inc., of a New York ruling dated December
13, 1988 (File # 833467), which classified modular wall panels
imported from Mexico, in subheading 7308.90.9090 under the
Harmonized Tariff Schedule of the United States (HTSUSA).
FACTS:
The merchandise consists of a modular wall panel made of
U.S. components, which are exported to Mexico and assembled
into panels. The panels comprise several parts: metal stud
frames, a gypsum core covered with an asphalt-impregnated paper
exterior sheathing, polystyrene board, fiberglass mesh and an
overlay of synthetic resin. The steel studs provide a frame
for the panel, and the gypsum sheathing serves as a foundation
for the expanded polystyrene board, which functions as the
insulating material. The polystyrene, fiberglass, and
synthetic resin can also be applied to other surfaces, such as
existing walls of concrete (poured in place or precast),
concrete block, brick, and wood. The fiberglass mesh ties the
surface of the panel together, protects the polystyrene board
and gypsum substrate, prevents surface cracks, provides impact
resistance, and reinforces the panel.
The gypsum sheathing weighs 200 pounds, or one-half of a
100 square foot panel's total weight. It is valued at $19.00,
out of $164.29, the total value of the panel. The steel studs
constitute 27% of the article's weight and provide 30% of its
value. The plastics components, fiberglass, and gypsum board
provide 70% of the panel's value.
- 2 -
The following steps are involved in assembling the
panel:
1. The metal studs are mechanically fastened or welded
together to form a frame.
2. The gypsum core is screwed or fastened to the stud
frame.
3. An expanded polystyrene board is glued to the gypsum
sheeting with glue made of latex modified portland
cement.
4. Reinforcing fiberglass mesh is bonded to the
styrofoam with the same glue used in step 3.
5. An overlay of synthetic resin, consisting of
aggregated acrylic polymer is spread onto the wallboard
with a trowel.
Descriptive literature submitted with the ruling request
states that these panels are used for interior or exterior
building wall construction. Exterior insulation reduces
thermal shock on a structure, stresses caused by the variations
in temperature on the building between the low winter
temperatures and the high summer temperatures. These
prefabricated panels are not structural panels.
Our New York office classified these panels as
structures and parts of structures of iron or steel in
subheading 7308.90.90. The importer disagrees with this
classification and argues that they should be classified in
heading 3925 as builders' ware of plastics. The importer notes
that under GRI 3(b) of the HTSUSA, these panels are not
classified in heading 7308 since the plastic components give
them their essential character. The steel studs provide
structural support for the panel, but according to the
importer, are unnecessary to its main function, which is
insulation. These studs could be made of another material,
such as wood, aluminum, concrete, or any other rigid substance.
The plastics components can also be attached to an existing
structure of wood, concrete, metal or as in this case, gypsum
sheathing.
- 3 -
ISSUE:
Whether the modular wall panels are properly classified
as builders' ware of plastics in heading 3925, as structures or
parts of structures of iron or steel in heading 7308, as
articles of plaster or of compositions based on plaster in
heading 6809, or as other articles of plastics and articles of
other materials of headings 3901 to 3914 in heading 3926 under
the HTSUSA.
LAW AND ANALYSIS:
The General Rules of Interpertation (GRI's), the legal
principles by which merchandise is classified, govern
classification under the HTSUSA. According to GRI 1, the
primary consideration in determining whether merchandise should
be classified in a heading should be given to the language of
the heading and to any relevant chapter or section notes. The
headings at issue in this case include:
3925 Builders' ware of plastics, not elsewhere
specified or included:
* * * * * * * * * *
3926 Other articles of plastics and articles of
other materials of headings 3901 to 3914:
* * * * * * * * * *
7308 Structures (excluding prefabricated buildings
of heading 9406) and parts of structures (for
example, bridges and bridge sections, lock
gates, towers, lattice masts, roofs, roofing
frameworks, doors and windows and their frames
and thresholds for doors, shutters,
balustrades, pillars and columns) of iron or
steel; plates, rods, angles, shapes, sections,
tubes and the like, prepared for use in
structures, or iron or steel:
- 4 -
6809 Articles of plaster or of compositions based on
plaster:
Based on the language of the headings, the modular wall
panels can be prima facie classified in four headings, 3925,
3926, 6809, and 7308. They are composed of three primary
components, plastics, steel and plaster (gypsum core).
According to GRI 2, goods consisting of more than one material
or substance shall be classified according to the principles of
GRI 3. GRI 3 (b) states that mixtures and composite goods
consisting of different materials, or made up of different
components, shall be classified as if they consisted of the
material or component which gives them their essential
character. The factor that determines the essential character
of an article varies between the different kinds of article.
It may be the nature of the material or component, its weight,
value, bulk, or quantity, or its role in relation to the use of
the goods.
The panels in this case consist of five parts, a metal
stud frame, gypsum core covered with asphalt-impregnated paper,
polystyrene board, reinforcing fiberglass mesh and an overlay
of synthetic resin consisting of acrylic polymer. Three of
these parts have plastics components (polystyrene board, resin,
and the latex portland cement glue). Thus, the plastics
components provide a larger quantity of the materials in the
product. In addition, the role that they play in relation to
the use of the panel suggest that they give the panels their
essential character. The plastics components provide the
interior or exterior surface of the panels and give them their
outward appearance. In addition, they are crucial to the
panel's main purpose, which is to provide insulation. The
panels cannot perform this function without these components.
The steel studs and gypsum core provide the structural
support and a foundation for the prefabricated panels; however,
they are not crucial to their main purpose. The plastics
insulating materials can be used without the steel studs, as
long as there is a rigid surface to attach them to. In this
case, the gypsum core serves as the surface, but other surfaces
such as concrete block, brick, and wood can be used. Finally,
the steel studs make up only 27% of the panel's weight.
Although the gypsum core provides half of the panel's weight,
it comprises only a small percentage of its total cost.
- 5 -
Headquarters has ruled on a similar article in an
earlier decision. In a ruling dated May 2, 1989 (File #
083331), we ruled that insulated composite panels were
classified as parts of structures in heading 7308. These
panels consisted of two steel sheets, which formed the interior
and the exterior surface of the panel; a plastic foam center;
and a special joint and clamp, also made of steel. The steel
components were held to give the panels their essential
character.
The panels in this case are distinguishable from those
in the ruling dated May 2nd. In that case, the steel sheets
formed both the exterior and interior walls of panels, gave the
panels their outward appearance, and provided the bulk of the
article. The plastics components perform this role in the case
at issue. Thus, under these facts, the plastics components
give the panels their essential character.
Based on the language of the heading, the panels cannot
be classified in heading 3925. Although these panels are used
in walls, they are not structural elements and do not meet the
requirements of chapter note 11(b) to chapter 39 for
classification in that chapter. Based on the language of the
heading, the panels are classified in heading 3926, which
provides for other articles of plastics. The Explanatory Notes
for this chapter state that this heading covers articles, not
elsewhere specified or included, of plastics or of other
materials of headings 39.01 to 39.14. We have established that
these panels are articles of plastics, and they are not
provided for in any other heading.
HOLDING:
The modular wall panels are properly classified as other
articles of plastics and articles of other materials of
headings 3901 to 3914 in heading 3926, subheading 3926.90.90.
Sincerely,
John Durant, Director
Commercial Rulings Division
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