CLA-2 CO:R:C:G 087982 JMH
Chief, Customs Information Exchange
U.S. Customs Service
6 World Trade Center
New York City, New York 10048
RE: Hot-rolled D-shaped steel bars; rail reinforcing bars; other
material specialized for jointing or fixing rails; angles,
shapes and sections of steel; Chapter 72, Note 1(n)
Dear Madam or Sir:
This is in response to your September 19, 1990, request for
the resolution of a difference of opinion between the Buffalo,
New York port and the National Import Specialist ("NIS") in New
York on certain hot-rolled D-shaped steel bars.
FACTS:
The articles in question are hot-rolled D-shaped steel bars.
The bars are imported from Canada by Midwest Steel Corp. of
Hogansville, Georgia. The D-shaped bars measure approximately
one-half inch in thickness and approximately four inches in
width. The bars may be imported in varying lengths and may be
cut to length in the United States. The bars imported through
Buffalo range in length from 18'5" to 30'. The usual length is
from 11' to 16'4".
Upon importation the bars are intended for use as
reinforcement bars for railway tracks. The bars are referred to
as rail reinforcing bars. Rail reinforcing bars are used to
protect switch points against possible fracture. Switch points
are movable tapered track rail which divert rolling stock from
one track to another. The reinforcing bars are bolted or riveted
along one or both sides of the web of the rail. The reinforcing
bars strengthen the rail section and protect against accidents in
case a fracture occurs.
The import specialist in Buffalo believes that these bars
are classified in subheading 7216.50.00, Harmonized Tariff
Schedule of the United States ("HTSUSA"), as "Angles, shapes and
sections of iron or nonalloy steel...Other angles, shapes and
-2-
sections, not further worked than hot-rolled, hot-drawn or
extruded..." The NIS believes that the bars are classified in
subheading 7302.90.00, HTSUSA, as "Railway or tramway track
construction material of iron or steel, the following: rails...
and other material specialized for jointing or fixing rails...
Other..."
ISSUE:
Whether the hot-rolled D-shaped steel bars are classified in
subheading 7216.50.00, HTSUSA, as "Angles, shapes and sections of
iron or nonalloy steel...Other angles, shapes and sections, not
further worked than hot-rolled, hot-drawn or extruded...", or in
subheading 7302.90.00, HTSUSA, as "Railway or tramway track
construction material of iron or steel, the following: rails...
and other material specialized for jointing or fixing rails...
Other..."
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation ("GRIs"). GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes..." The two headings in
contention are heading 7216 and 7302, HTSUSA. These headings
describe the following:
7216 Angles, shapes and sections of iron or
nonalloy steel...
* * * * * * * * * * * *
7302 Railway or tramway track construction
material of iron or steel, the following:
rails, check-rails and rack rails, switch
blades, crossing frogs, point rods and other
crossing pieces, sleepers (cross-ties), fish-
plates, chairs, chair wedges, sole plates
(base plates), rail clips, bedplates, ties
and other material specialized for jointing
or fixing rails...
The bars in question are undoubtedly "angles, shapes and
sections" of steel. Therefore, they are classifiable in heading
7216. However, two experts regarding iron and steel products and
railway products have examined the information regarding the
subject steel bars. These experts stated that the articles in
question are unique to the rail construction industry and are
known
-3-
components for railway track construction. Thus, the steel bars
are "other material specialized for jointing or fixing rails" and
are also classifiable in heading 7302. The steel bars meet the
terms of both headings.
GRI 1, HTSUSA, requires not only that the terms of the
heading must be met, but also that the article being classified
must comply with the section and chapter notes. Chapter 72, Note
1(n), HTSUSA, excludes products of heading 7302 from
classification as an angle, shape and section in Chapter 72.
Therefore, the hot-rolled, D-shaped steel bars cannot be
classified in heading 7216.
The legal notes of the HTSUSA require that the hot-rolled D-
shaped steel bars be classified under heading 7302. The proper
classification for the bars is subheading 7302.90.00, HTSUSA, as
"Railway or tramway track construction material of iron or steel,
the following: rails... and other material specialized for
jointing or fixing rails... Other..."
HOLDING:
In accordance with Chapter 72, Note 1(n), the hot-rolled, D-
shaped steel reinforcing bars are excluded from classification in
heading 7216. The bars are properly classified, in accord with
GRI 1, in subheading 7302.90.00, HTSUSA, as "Railway or tramway
track construction material of iron or steel, the following:
rails... and other material specialized for jointing or fixing
rails... Other..."
The steel bars are manufactured and imported into the United
States from Canada. Should the requirements of the General Note
3(c)(vii), HTSUSA, be met, then the steel bars are eligible for
the reduced tariff rates under the United States-Canada Free
Trade Agreement.
Sincerely,
John Durant, Director
Commercial Rulings Division