HQ 950626
FEBRUARY 19 1992
CLA-2:CO:R:C:M 950626 JAS
Vincent Bowen, Esq.
Willkie Farr & Gallagher
1155 21st. Street, N.W.
Washington, D.C. 20036-3384
RE: Hot-Rolled Nonalloy Steel Plate; Flat-Rolled Nonalloy
Steel, Bevelled, Perforated, or Bevelled and Perforated;
Steel Plate, Further Worked
Dear Sir:
In your letter dated October 17, 1991, on behalf of Primary
Steel Inc., North Haven, Connecticut, you inquire as to the
tariff classification of certain hot rolled steel plate from
Brazil. Drawings were submitted. Our ruling follows.
FACTS:
ASME carbon grade A-455 and other carbon grades of steel
plate are hot rolled from slab. In subsequent processes, the
plate will be either bevelled or perforated, or both bevelled and
perforated. Bevelling involves angling the two lengthwise edges
to facilitate welding, and perforating involves drilling or torch
cutting five (5) holes at specific locations to accommodate
piping. The hot rolled plates will be imported in three (3)
standardized sizes: 93 5/8 inches x 66 inches x .199 inches, 117
3/4 inches x 84 1/2 inches x .248 inches, and 128 1/4 inches x 77
inches x .271 inches. The plates will also be imported in
nonstandardized sizes: 96-270 inches x 36-160 inches x 3/16-9
inches. After importation, the plates will be rolled into
cylinders and welded along the bevelled edges, then further
fabricated into liquid gas propane storage tanks and pressure
vessels.
You indicate that the imported plates are flat-rolled
products as defined in Chapter 72, Note 1(k), HTSUS, and are
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provided for in heading 7208, flat-rolled products of iron or
nonalloy steel, of a width of 600 mm or more, hot-rolled, not
clad, plated or coated. You maintain that the plates are not
further worked than hot-rolled because they are further worked by
bevelling and/or perforating. You conclude that subheading
7208.90.00, other flat-rolled products of iron or nonalloy steel,
other, represents the correct classification.
ISSUE:
Whether either bevelling or perforating, or bevelling and
perforating together, constitute further working for purposes of
heading 7208.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 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, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.
In accordance with Chapter 72, Note 1(k), flat-rolled
products in straight lengths of the required dimensions include
those with patterns in relief derived directly from rolling (for
example, grooves, ribs, checkers, tears, buttons, lozenges), and
those which have been perforated, corrugated or polished,
provided that they do not thereby assume the character of
articles or products of other headings. However, from this legal
note we are unable to differentiate flat-rolled products that are
considered further worked from such products that are not
considered further worked.
However, relevant Harmonized Commodity Description And
Coding System Explanatory Notes (ENs) at p. 994 expand on the
meaning of note 1(k). These ENs indicate that patterns in
relief, described as grooves, ribs, chequers, tears, buttons and
lozenges are derived directly from the rolling of flat-rolled
products of heading 7208, but that flat-rolled products of this
heading are considered to have been worked after rolling if they
have been perforated, corrugated, bevelled or rounded at the
edges (Emphasis added).
Applying this criteria to the merchandise in issue, we find
that hot-rolled plate with bevelled edges, and such plate with
holes cut (perforated), as described, are considered to be
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further worked after rolling for purposes of heading 7208. The
same result obtains for hot rolled plate that has been both
bevelled and perforated. There is no indication that by virtue
of this processing the hot-rolled plate has assumed the character
of containers for compressed or liquified gas of heading 7311 or
articles of any other heading.
HOLDING:
Under the authority of GRI 1, HTSUS, hot-rolled nonalloy
steel plate that has been either bevelled or perforated, and such
plate that has been bevelled and perforated, as described, is
provided for in heading 7208. Actual classification is in
subheading 7208.90.00, HTSUS, flat-rolled products of iron or
nonalloy steel, of a width of 600 mm or more, hot-rolled, not
clad, plated or coated, other. The rate of duty is 5 percent ad
valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division