CLA-2 RR:TC:MM 960186 DWS
Port Director of Customs
Building #77
Jamaica, NY 11430
RE: Protest 1001-96-108157; Stainless Steel Strip; Chapter 72,
Notes 1(k) and 1(o);
Flat-Rolled Products; Wire; "The Making, Shaping and
Treating of Steel";
Turks-Head Machine; 7220.20.70
Dear Port Director:
The following is our decision regarding Protest 1001-96-108157 concerning your action in classifying and assessing duty
on stainless steel strip under the Harmonized Tariff Schedule of
the United States (HTSUS).
FACTS:
The merchandise consists of stainless steel strip, imported
in following measurements: 2.8 mm x 0.8 mm, 3.2 mm x 0.8 mm, 2.5
mm x 0.7 mm, 3.505 mm x 0.8 mm, 2.489 mm x 0.8 mm, 4.09 mm x 0.7
mm, and 3.78 mm x 0.7 mm. The protestant claims the strip is
manufactured utilizing the following process. Stainless steel
round wire rod is drawn through a multiple drawing machine which
reduces its diameter and enhances its mechanical properties. The
product is then strand annealed, round coil to round coil, and
drawn on a single drawing machine to its final process round
dimension. It is then processed through a wire flattening mill
designed and manufactured specifically for wire flattening (a
type of a Turks-head machine). This final process takes the
product and flattens it into its final size. The protestant
states that the width of the strip always measures less than 10
times its thickness, and that the strip is always produced from round wire and is always cold
formed/cold compressed into its round-edge flat dimension.
The stainless steel strip was entered on January 9, 1996
under subheading 7223.00.50, HTSUS, as flat wire of stainless
steel. The entry was liquidated on August 2, 1996, under
subheading 7220.20.70, HTSUS, as a flat-rolled product of
stainless steel. The protest was timely filed on October 29,
1996.
The subheadings under consideration are as follows:
7220.20.70: [f]lat-rolled products of stainless steel, of a
width of less than 600 mm:
[n]ot 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.
The 1996 general, column one rate of duty for goods
classifiable under this
provision is 8.5 percent ad valorem.
7223.00.50: [w]ire of stainless steel: [f]lat wire.
The 1996 general, column one rate of duty for goods
classifiable under this
provision is 2.6 percent ad valorem.
ISSUE:
Whether the stainless steel strip is classifiable under
subheading 7220.20.70, HTSUS, as a flat-rolled product of
stainless steel, or under subheading 7223.00.50, HTSUS, as flat
wire of stainless steel.
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 is determined according to the
terms of the headings and any relative section or chapter notes.
Chapter 72, notes 1(k) and 1(o), HTSUS, state that:
[i]n this chapter and, in the case of notes (d), (e) and (f)
below throughout the
tariff schedule, the following expressions have the meanings
hereby assigned to
them:
(a) - (ij) xxx
(k) Flat-rolled products
Rolled products of solid rectangular (other than
square) cross section, which
do not conform to the definition at (ij) above in the
form of:
- coils of successively superimposed layers, or
- straight lengths, which if of a thickness less than
4.75 mm are of a width
measuring at least 10 times the thickness or if of
a thickness of 4.75 mm or
more are of a width which exceeds 150 mm and
measures at least twice
the thickness.
Flat-rolled products 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.
Flat-rolled products of a shape other than rectangular
or square, of any size,
are to be classified as products of a width of 600 mm
or more, provided that
they do not assume the character of articles or
products of other headings.
(l) - (n) xxx
(o) Wire
Cold-formed products in coils, of any uniform solid
cross section along their
whole length, which do not conform to the definition
of flat-rolled products.
The question to be determined is whether the stainless steel
strip meets the definition of a flat-rolled product or of wire.
If the strip meets the definition of a flat-rolled product given
above, then it is precluded from classification as wire. Based
upon the information provided by the protestant, although of a
solid rectangular cross section, the strip is not in coils of
successively superimposed layers, but is spirally oscillated
(back and forth across a spool) in layers. Also, the strip is
not imported in straight lengths. As the strip does not meet the
definition of a flat-rolled product as defined in chapter 72, note 1(k), HTSUS, it is precluded from
classification under heading 7220, HTSUS.
In "The Making, Shaping and Treating of Steel" (10th ed.)
(pp. 983-984), it states that:
[c]ommon four-sided shaped wire, such as squares, oblongs or
keystone shape,
are frequently produced on cold-rolling equipment known as a
"Turks-head"
machine. This consists of four hardened-steel rolls set in
planes at right angles to
each other. The narrow face of the rolls, as set in the
framework, is adjustable on
the same plane so that the assembly of the overlapping roll
edges facing each other
will project the contour of the opening so formed, into the
desired shape of the
cross-section of the wire to be made. The process wire, of
a size somewhat larger
than the finished size desired, is pointed and pulled
through the Turks-head, being
thus rolled to shape and size, after which it is coiled on a
regular wire-drawing
take-up block.
(emphasis supplied).
As the cold-rolling by the Turks-head machine of the strip
is a type of cold-forming, and because it is our understanding
that the strip is imported in coils and possesses a uniform solid
cross section along its whole length, we find that it meets the
terms of wire in chapter 72, note 1(o), HTSUS. Therefore, it is
classifiable under subheading 7223.00.50, HTSUS.
You claim that because the protestant uses the term "flat
rolled" in their invoices, the strip should not classifiable as
wire. However, based upon discussions with the protestant and
the description of the merchandise, we are confident of the
classification of the strip as wire.
HOLDING:
The stainless steel strip is classifiable under subheading
7223.00.50, HTSUS, as flat wire of stainless steel.
The protest should be GRANTED in full. In accordance with
Section 3A(11)(b) of Customs Directive 099 3550-065, dated August
4, 1993, Subject: Revised Protest Directive, this decision,
together with the Customs Form 19, should be mailed by your
office to the protestant no later than 60 days from the date of
this letter. Any reliquidation of the entry in accordance with
the decision must be accomplished prior to mailing of this
decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Rulings Module in
ACS and the public via the Diskette Subscription Service, Freedom
of Information Act, and other public access channels.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division