CLA-2 CO:R:C:M 955749 LTO
Mr. Chad Hawley
Comprinox
Comprador Inoxidable Inc.
P.O. Box 192923
San Francisco, California 94119-2923
RE: Stainless steel cold-finished bars; stainless steel
billets/wire rods to bars (substantial transformation);
Anheuser-Busch Brewing Association v. U.S.; Superior Wire v.
U.S.; HQ 952462; 19 CFR 134.1
Dear Mr. Hawley:
This is in response to your letter of January 14, 1994,
requesting the country of origin for stainless steel cold-
finished bars under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
Stainless steel billets and stainless steel hot-rolled wire
rods in coils produced in India are sent to Argentina. In
Argentina, the billets are reheated, hot-rolled, straightened,
and then further ground, turned or polished to produce straight
lengths in diameters of one to four inches of cold-finished bars.
The wire rods are cold drawn, polished or ground, straightened
and cut to produce straight lengths of cold-finished bars. The
cold-finished bars are then sent to the U.S.
You state that neither raw material, billet or wire rod, is
suitable for use as an end product. They are strictly
intermediate products in the process of making steel from scrap
and alloys to final, finished products suitable for consumption
as components in manufacturing of other consumer or industrial
products.
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ISSUE:
Whether the stainless steel cold-finished bars have
undergone a substantial transformation as a result of the
processing performed in Argentina, so that they can be considered
articles of Argentina.
LAW AND ANALYSIS:
In order for the billets or wire rods produced in India to
be considered substantially transformed by the described
processing as to be regarded as a product of Argentina for tariff
purposes, the evidence must show that the processing results in a
product other than or materially different from the merchandise
entering Argentina. That is, a new and different article of
commerce must emerge from the processing, one having a new name,
character or use. Anheuser-Busch Brewing Association v. United
States, 207 U.S. 556 (1908).
A steel billet is a semifinished product intended for
further hot-rolling (or forging). In Argentina, the billets are
reheated, hot-rolled, straightened, and then further ground,
turned or polished to produce straight lengths in diameters of
one to four inches of cold-finished bars.
When the billet is hot-rolled, a significant molecular
change occurs--the molecular structure changes from the cast
dendritic structure into a uniform, "equiaxed" wrought structure.
Moreover, a significant physical change occurs--the shape and
physical dimensions of the steel product are greatly altered.
It is our opinion that the conversion of the stainless steel
billet into the bar results in a substantial transformation of
the billet. The billet and bar have distinct names, different
physical and molecular characteristics and different uses. Thus,
the bars will be considered products of Argentina for
tariff purposes. See HQ 952462, dated October 26, 1992.
As for the wire rod, we have requested information
concerning the percentage reduction in cross-sectional area (from
wire rod to bar), the change in value and whether the wire rods
were annealed. To date, you have not provided us with this
information, and therefore, we cannot render a decision regarding
this merchandise.
HOLDING:
With regard to the steel billet, the described processing
operations in Argentina result in a substantial transformation
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or a product having a new name, character and use. Thus, the
cold-finished bars are products of Argentina.
Sincerely,
John Durant, Director
Commercial Rulings Division