CLA-2 CO:R:C:M 950067 AJS
7216.40.00; 7301.20.10.
Mr. K. K. Christensen
President
Oceanic Marine Consultants International, Inc.
3739 Mt. Ariane Drive
San Diego, CA 92111
RE: Bulb flats; Scandinavian angles; angles with unequal
flanges; welded sections; Chapter 72, note 1(n); ENs 72.16;
H. Conf. Rep. No. 576; Chapter 72, note 1(f); Chapter 72,
note 1(k); 19 CFR 152.103 (a)(5); VRAs.
Dear Mr. Christensen:
Your letter of July 31, 1991, regarding the duty rate
for certain steel products and related questions has been
referred to this office for reply.
FACTS:
The subject products consist of steel bulb flats which
are produced by hot-rolling continuous cast blooms. They are
made of nonalloy or carbon grade steels with the exception of
certain bulb flats which contain 1.65 percent by weight of
manganese. The subject bulb flats are used in the
shipbuilding industry and range from 6 mm to 17 mm in
thickness and from 100 mm to 430 mm in width.
The products at issue also consist of flats and
universals, "Scandinavian" angles, angles with unequal
flanges and welded sections. These products are made from
the same grades of steel used to produce the bulb flats and
they are all hot-rolled. The flats and universals range in
thickness from 12 mm to 40 mm and in width from 200 mm to
1000 mm. They will be imported in cut lengths. The
"Scandinavian" angles and the angles with unequal flanges
measure at least 150 mm in height. The welded sections
include butt-fillet welded L-sections, fillet welded T-
sections and fillet welded I-sections.
ISSUE:
What is the proper classification of the subject
products within Chapters 72 and 73 of the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA).
Are duty rates applicable to the price FOB mill or are
they applicable to freight costs as well.
Are these products subject to quota limitations.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRIs). GRI
1 provides that classification is determined first in
accordance with terms of the headings and any relative
Section or Chapter notes.
Heading 7216, HTSUSA, provides for angles, shapes and
sections of nonalloy steel. These are products having a
uniform solid cross section along their whole length which do
not conform to any of the definitions of semifinished
products, flat-rolled products, bars and rods, or wire in the
other lettered items of Chapter 72, note 1. Chapter 72, note
1(n). The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) state that the products of this
heading may have edges which are "bulbed" (bulb angles or
shipbuilding beams). ENs 72.16, p. 1003 (1991). The subject
bulb flats satisfy this description. They are bulbed
shipbuilding shapes or sections, and generally made of
nonalloy or carbon steel. While the ENs are not dispositive,
they provide a commentary on the scope of each heading and
offer guidance for interpretation of the HTSUSA. H. Conf.
Rep. No. 576, 100th Cong., 2d Sess., p. 549, reprinted in
1988 U.S. CODE CONG. & ADMIN. NEWS p. 1582. Accordingly, we
consider the above ENs instructive for determining that the
subject bulb flats satisfy the terms of heading 7216, HTSUSA.
Subheading 7216.50.00, HTSUSA, provides for "[o]ther
angles, shapes and sections, not further worked than hot-
rolled, hot-drawn or extruded." The bulb flats satisfy the
terms of this subheading. They are shapes or sections
produced by hot-rolling. Accordingly, the subject bulb flats
are classifiable within this subheading.
Steel which contains 1.65 percent or more of manganese
is an alloy steel for tariff purposes. Chapter 72, note
1(f). The submitted literature indicates that steel grades
275K, 365K, NV2-4, and NV4-4 used to produce the bulb flats
contain 1.65 percent of manganese. Consequently, bulb flats
produced with these grades cannot be classified within
heading 7216, HTSUSA, as products of nonalloy steel. In
addition, any of the other products made from these grades
are "of alloy steel" for tariff purposes.
Heading 7228, HTSUSA, provides for angles, shapes and
sections of other alloy steel. The subject bulbs made of
alloy steel satisfy the terms of this heading. Subheading
7228.70.30, HTSUSA, provides for "[a]ngles, shapes, and
sections: hot-rolled . . ." The above bulb flats satisfy the
terms of this subheading. They are hot-rolled shapes or
sections of alloy steel. Accordingly, the subject bulb flats
made of alloy steel are properly classifiable within the
above subheading.
Heading 7208, HTSUSA, provides for "[f]lat-rolled
products of iron or nonalloy steel, of a width of 600 mm or
more, hot-rolled . . ."
It was stated that the other products at issue are all
made from nonalloy grades of steel, and are also hot-rolled.
Flat-rolled products are articles of solid rectangular (other
than square) cross section, which are not semifinished
products, in the form of straight lengths which if of a
thickness of 4.75 mm or more are of a width which exceeds 150
mm and measures at least twice the thickness. Chapter 72,
note 1(k). The subject flats and universals satisfy this
description. They range in thickness from 12 - 40 mm and in
width from 200 - 1000 mm.
The subject flats and universals which are of a width of
600 mm or more satisfy the terms of heading 7208, HTSUSA.
Subheading 7208.42.00, HTSUSA, provides for "other" flat-
rolled products of a thickness exceeding 10 mm. The subject
flats and universals all measure at least 12 mm in thickness.
Accordingly, the flats and universals which are of a width of
600 mm or more satisfy the terms of this subheading and are
classifiable therein.
Heading 7211, HTSUSA, provides for flat-rolled products
of nonalloy steel of a width of less than 600 mm. The
subject flats and universals which are of a width of less
than 600 mm satisfy the terms of this heading. Subheading
7211.22.00, provides for "other" flat-rolled products of a
thickness exceeding 4.75 mm. As stated previously, the
subject products all measure at least 12 mm in thickness.
Therefore, these products are properly classifiable within
the above subheading.
Heading 7216, HTSUSA, provides for sections of nonalloy
steel. The subject "Scandinavian" angles and angles with
unequal flanges satisfy the terms of this heading. Sub-
heading 7216.40.00, HTSUSA, provides for L sections which
are not further worked than hot-rolled and of a height of 80
mm or more. The above angles satisfy the terms of this
subheading. They are hot-rolled L sections which measure at
least 150 mm in height. Accordingly, the subject angles are
properly classifiable within the above subheading.
Heading 7301, HTSUSA, provides for welded angles,
shapes and sections of steel. The subject welded sections
satisfy the terms of this heading. They are welded L, T and
I sections of nonalloy steel. More specifically, they are
described within subheading 7301.20.10, HTSUSA, which
provides for sections of nonalloy steel. Thus, the subject
sections satisfy the terms of this subheading and are
properly classifiable therein.
With regard to your question on the duty of freight
costs, foreign inland freight and other charges for services
incident to the international shipment of the merchandise
from the country of exportation to the place of importation
in the U.S. are nondutiable. 19 CFR 152.103 (a)(5). Any
questions regarding this matter should be directed to the
Value & Marking Branch of this Office at (202) 566-2938.
Regarding your question about quota limitations, the
importation of steel products is controlled by Voluntary
Restraint Arrangements (VRAs). We understand that products
classifiable under the above subheadings from Norway and
Sweden are currently not subject to the VRAs. However, the
VRAs are periodically amended so you should check with the
Commerce Department's Office of Agreements Compliance at
(202) 377-1385 before beginning importation.
HOLDING:
The subject bulb flats of nonalloy steel are
classifiable within subheading 7216.50.00, HTSUSA, which
provides for "[o]ther angles, shapes and sections, not
further worked than hot-rolled . . ."; dutiable at the rate
of 0.9 percent ad valorem.
The subject bulb flats of alloy steel are classifiable
within subheading 7228.70.30, HTSUSA, which provide for hot-
rolled angles, shapes and sections; dutiable at the rate of
2.1 percent ad valorem.
The subject flats and universals are classifiable within
either subheadings 7208.42.00 or 7211.22.00, HTSUSA,
depending on their respective widths. Products classifiable
within these subheading are dutiable at the rate of 6 percent
ad valorem.
The subject "Scandinavian" angles and angles with
unequal flanges are classifiable within subheading
7216.40.00, HTSUSA, which provides for L sections which are
not further worked than hot-rolled and of a height of 80 mm
or more; dutiable at the rate of 0.9 percent ad valorem.
The subject welded L, T and I sections are classifiable
within subheading 7301.20.10, HTSUSA, which provides for
sections of nonalloy steel; dutiable at the rate of 2.8
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division