CLA-2 R:C:M 957364 JAS
Mr. John A. Slagle
BARTHCO International, Inc.
7575 Holstein Avenue
Philadelphia, PA 19153
RE: DD 800469 Revoked; Stainless Steel Sheets in Rectangular
Shapes Dipped in Acid to Produce Colors; Further Working;
Flat-Rolled Products of Stainless Steel Not Further Worked
Than Cold-Rolled or Cold-Reduced; "Further Worked", Chapter
72, Additional U.S. Note 2
Dear Mr. Slagle:
In a ruling to you, dated August 23, 1994, DD 800469, on
behalf of Okura & Co. (America), the District Director of
Customs, Ogdensburg, NY, ruled that American Iron or Steel
Institute (AISI) Type 304 cold rolled stainless steel sheets, cut
to varying rectangular shaped sizes and thicknesses, then dipped
in a hot acid liquid to produce a variety of colors, was
classifiable in subheadings of heading 7219 as flat-rolled
products of stainless steel, of a width of 600 mm or more, not
further worked than cold-rolled (cold-reduced), depending on
thickness.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993),
notice of the proposed revocation of DD 800469 was published on
March 22, 1995, in the Customs Bulletin, Volume 29, Number 12.
FACTS:
The merchandise is cold rolled AISI Type 304 stainless steel
sheet of Japanese origin cut to either 4 ft. x 8 ft. or 4 ft. x
10 ft. sizes and from 0.8 mm to 3.0 mm in thickness. The steel
has a bright cold-rolled finish retained by final annealing in a
controlled atmosphere furnace. The sheet is then shipped to
Singapore where it is immersed in a hot liquid solution of
chromic acid and sulfuric acid at temperatures between 80 and 85
degrees C to induce the formation of an oxide film. The length
of time in submersion determines the thickness of the oxide film - 2 -
on which the color is based. Five basic colors - black, blue,
gold, red, and green - are available from this process along with
intermediate shades. These colored panels are used primarily in
the construction of doors, interior and exterior panels,
elevators, vending machines, and in kitchen surfaces and
household appliances.
The classifications enumerated in DD 800469 cover flat-
rolled products that are not further worked than cold-rolled or
cold-reduced. You maintain that immersing the steel sheet in the
acid solution is a further working for tariff purposes.
The provisions under consideration are as follows:
7219 Flat-rolled products of stainless steel,
of a width of 600 mm or more:
Not further worked than cold-rolled
(cold-reduced):
7219.32.00 Of a thickness of 3 mm or more but
less than 4.75 mm...9.1 percent
7219.33.00 Of a thickness exceeding 1 mm but less
than 3 mm...9.1 percent
7219.34.00 Of a thickness of 0.5 mm or more but
not exceeding 1 mm...9.1 percent
* * * *
7219.90.00 Other...5.3 percent
ISSUE:
Whether immersing stainless steel sheet in an acid,
solution, as described, is a further working for tariff purposes.
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.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized system. - 3 -
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under
the System. Customs believes the notes should always be
consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23,
1989).
For the purposes of Chapter 72, unless the context provides
otherwise, the term "further worked" refers to products subjected
to surface treatments such as polishing and burnishing,
artificial oxidation, and chemical surface treatments such as
phosphatizing, oxalating and borating, among others. Chapter 72,
Additional U.S. Note 2, HTSUS. The Chapter 72 General
Explanatory Notes, at pp. 981 and 982, describe a series of
surface treatments to improve the properties or appearance of the
metal. Among these are phosphatizing which is the process of
immersing a product in a solution of metallic acid phosphates;
oxalating, borating, etc., which use methods similar to those for
phosphatizing, with the appropriate salts or acids. The ENs
describe an additional process, chromating, which consists of
immersing the product in a solution whose main contents are
chromic acid or chromates.
The immersing of the cold-rolled stainless steel sheet in
acid liquid, as described, is a process of the type described in
the cited notes, and is considered a "further working" for tariff
purposes.
HOLDING:
Under the authority of GRI 1, the cold-rolled AISI Type 304
stainless steel sheets, processed as described, are provided for
in heading 7219. They are classifiable in subheading 7219.90.00,
HTSUS.
DD 800469, dated August 23, 1994, is revoked. In accordance
with 19 U.S.C. 1625(c)(1), this ruling will become effective 60
days after its publication in the Customs Bulletin. Publication
of rulings or decisions pursuant to 19 U.S.C. 1625(c)(1) does not
constitute a change of practice or position in accordance with
section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division