CLA-2 CO:R:C:M 952495 RFA
District Director of Customs
Columbia-Snake District
Portland, OR 97207
RE: IA 42/92; Wood Band Saw Steel Strip; Polishing; Grinding;
Further Worked; 7226.92.70; 7226.92.80; 7226.99.00;
PC 859260 Modified
Dear District Director:
This is in response to your Request for Internal Advice No.
42/92 (C2A-1-CS:LJS), dated June 22, 1992, regarding the
classification of certain wood band saw steel strip under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise is wood band saw steel strips which are a
flat cold-rolled product, not tool steel, manufactured by Daido
in Japan.
According to the submission by counsel for the importer,
during the manufacturing process, cold-rolled strips of steel are
heat treated in order to harden and temper the steel. This is
necessary to ensure that the strip will possess the strength and
flexibility characteristics required of band saw blade. A
grayish-black oxide scale forms on the surfaces of the steel as a
result of the heat treatment.
The next step in the manufacturing process is to place the
steel strips through a roll-grinding machine which uncoils the
material and passes it through the roll grinders. Both the top
and bottom surfaces pass through two cylindrically shaped roll-
grinders. The first pair of rollers are coated with an abrasive
of 80 grit, while the second pair of rollers are coated with an
abrasive of 220 grit.
ISSUE:
Does the two-step grinding process by the manufacturer
result in the wood band saw steel strip being "further worked"
under the HTSUS?
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 shall be
determined according to the terms of the headings and any
relative section or chapter notes, taken in order.
The imported merchandise has been classified under
subheading 7226.92.70, HTSUS or subheading 7226.92.80, HTSUS,
depending on the thickness.
Subheading 7226.92.70, HTSUS, provides for: "[f]lat-rolled
products of other alloy steel, of a width of less than 600 mm:
[o]ther:. . .[n]ot further worked than cold-rolled: [o]ther: [o]f
a width of less than 300 mm: [o]f a thickness not exceeding 0.25
mm. . ."
Subheading 7226.92.80, HTSUS, provides for: "[f]lat-rolled
products of other alloy steel, of a width of less than 600mm:
[o]ther:. . .[n]ot further worked than cold-rolled: [o]ther: [o]f
a width of less than 300 mm: [o]f a thickness exceeding 0.25 mm
. . ."
Your office is of the opinion that the subject wood band saw
steel is classifiable under subheading 7226.99.00, HTSUS, because
the steel has been further worked due to surface grinding which
resulted in a polished finish. Subheading 7226.99.00, HTSUS,
provides for "[f]lat-rolled products of other alloy steel, of a
width of less than 600mm: [o]ther:. . . [o]ther."
Additional U.S. Note 2 to Chapter 72 provides that "[f]or
the purposes of this chapter, unless the context provides
otherwise, the term 'further worked' refers to products subjected
to any of the following surface treatments: polishing. . ."
(emphasis in original).
In a letter dated August 19, 1991, by counsel for the
importer argues that the mechanical descaling process performed
on the product is to remove oxide crust formed during heat
treatment. The importer cites to General Explanatory Notes
72(IV)(C)(1) and 72(IV)(C)(2)(b), page 981, in support of his
argument that the grinding process performed does not constitute
"further worked". General Explanatory Notes 72(IV)(C) state that
[t]he finished products may be subjected to further
finishing treatments or converted into other articles
by a series of operations such as: (1) Mechanical
working, i.e., . . . grinding. . .; however it should
be noted that rough turning merely to eliminate the
oxidation scale and crust. . .are not regarded as
finishing operations leading to a change in
classification. (2) Surface treatments or other
operations. . .to improve the properties or appearance
of the metal. . .Except as otherwise provided in the
text of certain headings, such treatments do not affect
the heading in which the goods are classified. They
include: . . . (b) [d]escaling. . .to remove the oxide
scale and crust formed during the heating of the metal.
The importer does not address Additional U.S. Note 2 to
Chapter 72 in his arguments that the manufacturing process only
descales the wood band saw steel. The importer's citation to
General Explanatory Note 72(IV)(C) does not establish a context
which prevents the application of Additional U.S. Note 2 to the
manufacturing process of the wood band saw steel.
Instead, in the August 19, 1991 letter, counsel makes
several arguments as to why the manufacturing process performed
is only grinding and not polishing. Counsel raises seven
different ways to distinguish between grinding and polishing.
They are: type of backing; type of abrasive; metal removal;
speed/surface coverage; purpose of operation; finish codes and
surface roughness.
TYPE OF BACKING
Counsel argues that a distinction can be made between
polishing and grinding based upon the type of backing used on the
abrasives. Counsel states that polishing is the use of abrasives
firmly attached to a flexible backing, such as a wheel or belt,
while grinding is the use of abrasives firmly adhered to a rigid
backing. Because the manufacturer's roll-grinders have a rigid,
inflexible backing and operate in a stationary position as the
material passes through, counsel believes that the process is not
polishing. As described, the rollers work as a rigid precoated
wheel.
Based upon U.S. Customs Headquarters laboratory analysis,
dated November 3, 1992, it is our understanding that "[b]efore
the introduction of flexible belts, polishing wheels (sometimes
referred to as "setup wheels", because they must be coated with
abrasives and otherwise prepared before use) were the only
existing medium for polishing. Therefore, the rigid precoated
rollers used by the manufacturer can be used either for grinding
or polishing. The rollers' use depends on the type and grit size
of the abrasive."
TYPE OF ABRASIVE
Counsel states that cloth such as felts, woven cloths and
napped or piled cloths are used in polishing, while stones and
mineral-based compounds are the types of abrasives used in metal
grinding operations. Counsel argues that because the abrasive
compound used consists of a combination of alumina-based corundum
and silicon carbide, the process performed on the merchandise
cannot be considered polishing. However, ASM Metals Handbook,
8th ed., Vol.2 at page 371, states that "[e]mery and corundum are
the natural abrasives used on polishing wheels. . .."and that
"[a]luminum oxide and silicon carbide are the most widely used
artificial abrasives" for polishing.
METAL REMOVAL
Counsel also asserts that significant amount of material is
removed (76 micron meters) by the coarse grits, indicative of a
grinding process. It is further claimed that polishing for
reflective surface finish reduces the thickness of the material
by very little.
However, the analysis conducted by Customs Headquarters
laboratory indicates that "[a]brasives commonly employed in
grinding operations have a grit size ranging from 20 to 120
(coarse grit). In polishing operations the abrasives used have
grit size values over 150 (fine grit)." In its two-step
descaling process, the manufacturer uses grit size 80 on the
first roller to remove all the scale that result from the
oxidation of the surface after the heat treatment. The second
roller with a grit size 220 abrasive, removes the grinding lines
from the first step and increases the smoothness. In the ASM
Metals Handbook, 8th ed., Vol.2, pages 374-376, on polishing and
buffing, it shows examples of different polishing applications.
Table 4 of this chapter includes typical grit sizes of corundum
used in polishing operations. For band saw steel, an 80 grit
size is used in the first stage and a 150 grit size is used in
the second stage. Table 6 describes the first stage as a
roughing operation (i.e., grinding) and the second stage as a
polishing operation.
SPEED/SURFACE COVERAGE
The fourth argument made by counsel deals with speed/surface
coverage. Counsel states that by comparing the average coated-
wheel polishing operation (the polisher covers 38.3 meters of
material in one second) with the manufacturer's line speed of 10
meters per minute or 0.166 meter ground per second, it is clear
that the process is merely grinding. However, it is our
understanding based upon laboratory analysis that the "speeds
associated with a particular grinding and/or polishing procedure
depend on the shape and design of the workpiece, the type of
metal of which it is made and its surface condition. It is very
difficult to compare grinding and polishing speeds of different
manufacturing processes. . . .Line speed (table speed) is not
synonymous with grinding or polishing speed (roller speed).
Roller speeds are commonly given in sfm (surface feet per minute)
and have values between 3000 to 8000 sfm."
PURPOSE OF THE OPERATION
Counsel also argues that the purpose of the operation is
mechanical descaling and not polishing. They claim only the
oxide scale formed during heat treatment is removed and that the
surface after mechanical descaling is rougher than the surface at
the cold-rolled stage. Counsel defines polishing as the means to
improve the appearance of the material. We believe that
polishing is better described as an operation employing the use
of abrasives for the removal or smoothing of grinding lines,
scratches, and other surface defects that adversely affects the
appearance or function of a steel product. Polishing increases
smoothness and also produces, in some materials, an increase in
brightness and luster of the product. However, polishing is not
synonymous with brightness or luster.
FINISH CODES
Another argument counsel makes is that the material cannot
be considered polished because there is no finish code specified
for or assigned to alloy steel. We believe that the lack of a
finish code for band saw steel does not imply that the product
was not ground and/or polished. It merely implies that the
sellers and buyers of band saw steel market their product using
other parameters such as hardness, nickel content, size range
(width and thickness), or tensile strength.
SURFACE ROUGHNESS
The final argument that counsel makes is that the material's
surface roughness increased after roll-grinding in comparison to
its surface prior to heat treatment. However, this argument is
not persuasive because it does not compare similar products. A
cold-rolled strip is not the same as a cold-rolled strip that has
been heat treated. The surface roughness of the steel increases
dramatically with heat treatment. The subsequent two-step
process of grinding and polishing produces the required roughness
and smoothness in wood band saw steel.
In addition, a sample of the subject material was taken
along with three samples of wood band saw steel from different
manufacturers (Sandvik, Trefil Arbed and Uddeholm) from the same
end-user. The subject steel strips were compared to the other
three samples by optical and scanning emission microscopy. The
roughness of each sample was measured by profilometry, a
technique which moves a stylus across irregularities on the
surface, and measures and records the amplitude of the movement.
This test indicated that all four samples are approximately
equally "smooth". The manufacturers of the other three samples
all indicate that their product is polished. Because the subject
steel strip is as equally "smooth" as the three samples, we
believe it is polished.
Based upon the two-step process of grinding and polishing,
we conclude that the material; flat-rolled products of other
alloy steel, of a width of less than 300 mm, has been "further
worked" as defined by Additional U.S. Note 2 to Chapter 72.
Accordingly, the proper classification of the subject wood band
saw steel is under subheading 7226.99.00, HTSUS, which provides
for "[f]lat-rolled products of other ally steel, of a width of
less than 600mm: [o]ther:. . .[o]ther."
In PC 859260, dated February 13, 1991, the District Director
of Customs in Detroit, Michigan, provided Uddeholm Corporation
pre-entry classification advice in regards to wood band saw
steel, a flat-rolled product of other alloy steel, of a width of
less than 300 mm, and a thickness exceeding 0.25 mm. PC 859260
stated that this product would be classifiable under subheading
7226.92.80, HTSUS. Based upon the above analysis, we believe
that the proper classification of the wood band saw steel
imported by Uddeholm is under subheading 7226.99.00, HTSUS.
HOLDING:
The wood band saw steel is classifiable under subheading
7226.99.00, HTSUS, which provides for: "[f]lat-rolled products
of other alloy steel, of a width of less than 600mm: [o]ther:
. . .[o]ther." The general, column one rate of duty is 6.3
percent ad valorem.
Please furnish a copy of this ruling to the internal advice
applicant.
EFFECT ON OTHER RULINGS:
PC 859260, dated February 13,1991, no longer reflects the
position of Customs Service and has been modified pursuant to
section 177.9(d) of the Customs Regulations [19 CFR 177.9(d)].
See the enclosed copy of HQ 953046 of this date.
Sincerely,
John Durant, Director
Commercial Rulings Division