CLA-2 CO:R:C:M 954699 LTO
Mr. Y. Yoneyama
Sumitomo Corporation of America
345 Park Avenue
New York, New York 10154-0042
RE: Steel Wire Rod; 7227.20.00; silico-manganese steel;
chromium-silicon alloy steel; 886738 reconsidered
Dear Mr. Yoneyama:
This is in response to your letter of July 27, 1993,
requesting reconsideration of 886738 issued to you on June 24,
1993, by the Portland, Oregon, District, concerning the
classification of steel wire rod, from Japan, under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise at issue is hot-rolled steel wire rod in
irregularly wound coils, which is used to manufacture valve
springs. The diameter of the wire rod is 5.5 mm. The steel wire
rod has the following composition:
Carbon 0.51 - 0.59%
Manganese 0.6 - 0.8%
Silicon 1.2 - 1.6%
Chromium 0.6 - 0.8%
Phosphorous 0.035%
Sulfur 0.040%
In response to your letter of May 25, 1993, you were advised
in 886738 that the steel wire rod was classifiable as other alloy
steel under subheading 7227.90.60, HTSUS. You contend that,
because of its special properties, the subject steel wire rod
should be categorized as silico-manganese steel.
ISSUE:
Whether the steel wire rod is classifiable as silico- - 2 -
manganese steel under subheading 7227.20.00, HTSUS.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states in pertinent part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes . . . ."
The subheadings at issue are as follows:
7227 Bars and rods, hot-rolled, in irregularly
wound coils, of other alloy steel:
7227.20.00 Of silico-manganese steel (4.5% ad valorem)
* * * * * * * * * * * * *
Other:
7227.90.60 Other (4.5% ad valorem)
Subheading note 1(e) to chapter 72 defines silico-manganese
steel as "[a]lloy steel containing by weight:"
- 0.35 percent or more but not more than 0.7 percent of
carbon
- 0.5 percent or more but not more than 1.2 percent of
manganese, and
- 0.6 percent or more but not more than 2.3 percent of
silicon, but not containing any other element in a
proportion that would give the steel the characteristics
of another alloy steel.
The steel wire rod at issue does not fall within the above
definition. While the rod does contain the appropriate amounts
of carbon, manganese and silicon, it also contains additional
elements that give the steel the characteristics of another alloy
steel. Specifically, the rod contains chromium content in the
range of 0.6 to 0.8%, as well as phosphorous (0.035%) and sulfur
(0.040%). The inclusion of the chromium gives the steel the
characteristics of chromium-silicon alloy steel (the steel has
the same chemical composition as standard [ASTM A 401-77]
chromium-silicon alloy steel spring wire), which is an alloy
steel other than silico-manganese steel.
Moreover, the chromium content causes the steel to meet the
chemical composition requirements in the definition for other
alloy steel in note 1(f) to chapter 72. Note 1(f) to chapter 72
defines other alloy steel as "[s]teels not complying with the - 3 -
definition of stainless steel and containing by weight one or
more of the following elements in the proportion shown . . . 0.3
percent or more of chromium." There is no requirement that other
alloy steel contain more than 1.65% manganese. The steel wire
rod is therefore classifiable under subheading 7227.90.60, HTSUS.
HOLDING:
The steel wire rod is classifiable under subheading
7227.90.60, HTSUS, which provides for other hot-rolled bars and
rods, in irregularly wound coils, of other alloy steel. The
corresponding rate of duty for articles of this subheading is
4.5% ad valorem.
Portland decision 886738, dated June 24, 1993, is affirmed.
Sincerely,
John Durant, Director