CLA-2 RR:TC:MM 955310 RFA
Mr. Thomas J. O'Donnell
O'Donnell, Byrne & Williams
20 North Wacker Drive
Suite 3710
Chicago, IL 60606
RE: Cold-Rolled Steel Strips; Polishing; Grinding; Further
Worked; Additional U.S. Note 2 to Chapter 72; HQs 952495,
955737, and 958623; PC 859260, Modified
Dear Mr. O'Donnell:
In a letter dated July 23, 1993, to the Regional
Commissioner of Customs in New York, you inquired on behalf of
your client, Uddeholm Corporation, as to the tariff
classification of strip steel products of PC 859260, dated
February 13, 1991, under the Harmonized Tariff Schedule of the
United States (HTSUS) in light of HQ 952495. In preparing this
ruling, we also considered the information provided with your
submissions of January 2 and December 8, 1995. We regret the
delay in responding.
FACTS:
On February 13, 1991, Customs in Detroit issued Pre-entry
Classification Advice (PC) 859260 to Uddeholm Corporation on the
following steel products:
1) AEB-L Scalpel Steel, a cold-rolled stainless steel
strip, classifiable under subheading 7220.20.70, HTSUS.
You indicate that this product is subject to grinding
and brushing using a 400 grit abrasive in fineness.
2) Flapper Valve Steel, a cold-rolled, hardened and
tempered stainless steel strip, classifiable under
subheading 7220.20.70, HTSUS. You indicate that this
product is subject to grinding and brushing using up to
a 600 grit abrasive in fineness.
3) Remko B, a cold-rolled, soft magnetic non-alloy strip,
classifiable under subheading 7211.41.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using a 400 grit abrasive in fineness.
4) UHB 20-Carbon Flapper Valve Steel, a cold-rolled,
hardened and tempered non-alloy steel strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using abrasive grit sizes from 400 up to 600
in fineness.
5) Bread Band Knife Steel, a cold-rolled non-alloy steel
strip, classifiable under subheading 7211.49.10, HTSUS.
You indicate that this product is subject to grinding
and brushing using a 400 abrasive grit in fineness.
6) Butcher Bandsaw Steel, a cold-rolled, non-alloy strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using up to a 400 abrasive grit in fineness.
7) Wood Band Saw Steel, a cold-rolled, non-alloy strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using a 400 abrasive grit in fineness.
8) Reed Steel, a cold-rolled, hardened and tempered non-alloy steel strip, classifiable under subheading
7211.49.10, HTSUS. You indicate that this product is
subject to grinding and brushing using abrasive grit
sizes up to 400 in fineness.
9) Wafer Gangsaw Steel, a cold-rolled, non-alloy strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using up to a 400 abrasive grit in fineness.
10) AISI 52100 Steel, a cold-rolled, annealed alloy steel
strip, classifiable under subheading 7226.92.30, HTSUS.
You indicate that this product is subject to grinding
and brushing using a 600 abrasive grit in fineness.
11) Alloy Wood Band Saw Steel, a cold-rolled alloy [2%
nickel] steel strip, classifiable under subheading
7226.92.80, HTSUS. This product was reclassified based
upon HQ 952495.
Each steel strip undergoes an oxide scale removal operation
for the purpose of imparting a better surface finish to the
products. To perform this operation, Bessemer wire (metallic)
brushes are mounted on both sides of the steel strips to be
descaled, ground and polished. The steel strips are then passed
between the brushes which are loaded with oil or wax with aluminum oxide (synthetic corundum)
abrasives in various grit sizes.
For unhardened strip products, the steel is subjected to
brushing using Bessemer wire brushes. This operation is
facilitated by using oil or wax with aluminum oxide of grit size
up to 400 in fineness. For hardened and tempered valve and
spring strip steel, the material is first ground, using belts in
various sizes with grit from size 80 to size 180 in fineness.
The products are annealed and must be further treated to remove
annealing scale. This is done with Bessemer wire brushes and a
mixture of oil and aluminum oxide grit of fineness 400 to 600.
Wood band saw steel undergoes one of two descaling methods
depending upon the thickness of the strip. For wood band saw
steel greater than 1.60mm in thickness, the strips are ground by
the first belt with a 80-100 grit fineness. The strips are then
further ground with belts using a 120-180 grit fineness. For
wood band saw steel 1.60mm or less in thickness, the strips are
ground by the first belt with a 80-100 grit fineness. The strips
are then brushed using Bessemer wire and a mixture of wax and
aluminum oxide with a 400 grit fineness.
The following subheadings are under consideration:
7211: Flat-rolled products of iron or nonalloy
steel, of width of less than 600 mm, not
clad, plated or coated:
7211.23.20: Not further worked than cold-rolled
(cold-reduced): [c]ontaining by weight
less than 0.25 percent of carbon: [o]f a
width of less than 300 mm: [o]f a
thickness exceeding 1.25 mm: . . . . .
[formerly 7211.41.10]
Goods classifiable under this provision have a
duty rate of 4.6 percent ad valorem.
7211.29.20 Not further worked than cold-rolled
(cold-reduced): [o]ther: [o]f a width of
less than 300 mm: [o]f a thickness
exceeding 0.25 mm. . . . . [formerly
7211.49.10]
Goods classifiable under this provision have a
duty rate of 2.7 percent ad valorem.
7211.90.00 Other. . . . . .
Goods classifiable under this provision have a
duty rate of 4.1 percent ad valorem.
7220 Flat-rolled products of stainless steel, of width
of less than 600 mm:
7220.20.70 Not further worked than cold-rolled
(cold-reduced): [o]f a width of less
than 300 mm: [o]f a thickness exceeding
0.25 mm but not exceeding 1.25 mm. . . .
. .
Goods classifiable under this provision have a
duty rate of 8.5 percent ad valorem.
7220.90.00 Other. . . .
Goods classifiable under this provision have a
duty rate of 4.6 percent ad valorem.
7226 Flat-rolled products of other alloy steel, of
width of less than 600 mm:
7226.92.30 Other: [n]ot further worked than cold-rolled (cold-reduced): [o]f tool steel
(other than high-speed): [o]f a width of
less than 300 mm . . . . .
Goods classifiable under this provision have a
duty rate of 8.5 percent ad valorem.
7226.99.00 Other: [o]ther. . . . .
Goods classifiable under this provision have a
duty rate of 5 percent ad valorem.
ISSUE:
Does the surface treatment process by the manufacturer
result in the subject steel strips being "further worked" after
being cold-rolled under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
Additional U.S. Note 2 to Chapter 72, HTSUS, 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 HQ 955737, dated July 19, 1995, Customs determined the
classification of round, rectangular or block-shaped and flat
bars of alloy tool steel which were annealed to improve the
steel's mechanical properties. The rounds were then peeled or
turned and the blocks and flats machined or milled, resulting in
dimensions of 1/8 inch increments, expressed in thousandths or
ten thousandths of an inch. After examining the relevant
Explanatory Notes (ENs) and industry manufacturing standards,
Customs found that, in this particular circumstance, the turning,
peeling and milling or machining, as described, were "processes
designed not only to improve the bars' surface condition by
removing undesirable defects, but also to impart a desired form
or shape to the bar, as evidenced by the close dimensional
tolerances. These processes are considered cold-forming or cold-finishing operations for tariff purposes." The subject
merchandise was classified under heading 7228, as other bars and
rods not further worked than cold-formed or cold-finished. (See
also HQ 958623, dated February 20, 1996, in which Customs
determined that certain specialty steel identified as flat-rolled
products, forged products, kleen ground flats/precision ground
flats, precision machined drill rod and hollow bar which were
peeled and turned for the purpose of mechanical descaling were
"further worked" after hot-rolling resulting in the steel
products to be classified as "cold-formed".)
In HQ 952495, dated December 23, 1992, Customs determined
when certain wood band saw steel strips were considered "further
worked" after cold-rolled. In that case the cold-rolled wood
band saw steel strips were heat treated to harden and temper the
steel to ensure that the strip possessed the strength and
flexibility characteristics required of band saw blades. Because
an oxide scale formed on the surface of the steel due to the heat
treatment, the steel strip was passed through a two-step roll-grinding machine to remove the oxide scale. The first set of
grinding wheels used an alumina-based corundum and silicon
carbide abrasive with an 80 grit size. The steel was then passed
through a second set of wheels with a similar type of abrasive
with a 220 grit size. Based upon the entire manufacturing
process, Customs held that the subject wood band saw steel strips
underwent a "polishing" operation and was therefore "further
worked".
In each of the three cited Headquarters rulings, Customs
examined the manufacturing process of the various steel products
to determine whether the product underwent additional
manufacturing. Based upon the reasoning in HQ 952495 and the
grinding process Uddeholm Corporation uses, you request that we
reconsider PC 859260. You suggest that the use of the grit sizes
mentioned above, causes the steel to be "further worked". After
examining all of the information and the manufacturing process
after the steel has been cold-rolled, we agree that the subject
steel strips have been "further worked" and should be classified
as follows:
1) AEB-L Scalpel Steel, a cold-rolled stainless steel
strip, classifiable under subheading 7220.20.70, HTSUS.
You indicate that this product is subject to grinding
and brushing using a 400 grit abrasive in fineness.
The new classification should be under subheading
7220.90.00, HTSUS.
2) Flapper Valve Steel, a cold-rolled, hardened and
tempered stainless steel strip, classifiable under
subheading 7220.20.70, HTSUS. You indicate that this
product is subject to grinding and brushing using up to
a 600 grit abrasive in fineness. The new
classification should be under subheading 7220.90.00,
HTSUS.
3) Remko B, a cold-rolled, soft magnetic non-alloy strip,
classifiable under subheading 7211.41.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using a 400 grit abrasive in fineness. The
new classification should be under subheading
7211.90.00, HTSUS.
4) UHB 20-Carbon Flapper Valve Steel, a cold-rolled,
hardened and tempered non-alloy steel strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using grit abrasive sizes from 400 up to 600
in fineness. The new classification is subheading
7211.90.00, HTSUS.
5) Bread Band Knife Steel, a cold-rolled non-alloy steel
strip, classifiable under subheading 7211.49.10, HTSUS.
You indicate that this product is subject to grinding
and brushing using a 400 grit abrasive in fineness.
The new classification is subheading 7211.90.00, HTSUS.
6) Butcher Bandsaw Steel, a cold-rolled, non-alloy strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using up to a 400 grit abrasive in fineness.
The new classification is subheading 7211.90.00, HTSUS.
7) Wood Band Saw Steel, a cold-rolled, non-alloy strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using a 400 grit abrasive in fineness. The
new classification is subheading 7211.90.00, HTSUS.
8) Reed Steel, a cold-rolled, hardened and tempered non-alloy steel strip, classifiable under subheading
7211.49.10, HTSUS. You indicate that this product is
subject to grinding and brushing using grit abrasive
sizes up to 400 in fineness. The new classification is
subheading 7211.90.00, HTSUS.
9) Wafer Gangsaw Steel, a cold-rolled, non-alloy strip,
classifiable under subheading 7211.49.10, HTSUS. You
indicate that this product is subject to grinding and
brushing using up to a 400 grit abrasive in fineness.
The new classification is subheading 7211.90.00, HTSUS.
10) AISI 52100 Steel, a cold-rolled, annealed alloy steel
strip, classifiable under subheading 7226.92.30, HTSUS.
You indicate that this product is subject to grinding
and brushing using a 600 grit abrasive in fineness.
The new classification is subheading 7226.99.00, HTSUS.
11) Alloy Wood Band Saw Steel, a cold-rolled alloy [2%
nickel] steel strip, classifiable under subheading
7226.92.80, HTSUS. This product was reclassified based
upon HQ 952495.
HOLDING:
The subject steel strips are to be considered cold-rolled,
further worked for tariff purposes. Under the authority of GRI
1, these steel strips are provided for in headings 7211, 7220,
and 7226, HTSUS, as appropriate. They are classifiable under
subheadings 7211.90.00, 7220.90.00, and 7226.99.00, HTSUS, as
appropriate.
EFFECT ON OTHER RULINGS:
PC 859260, dated February 13,1991, no longer reflects the
position of the Customs Service and has been modified pursuant to
section 177.9(d) of the Customs Regulations [19 CFR 177.9(d)].
Sincerely,
John Durant, Director
Tariff Classification Appeals
Division