CLA-2-72:S:N:N3:117 806811
Mr. Jim Woodul
New Process Steel Corporation
P.O. Box 55205
Houston, Texas 77255
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA) of corrosion-
resistant flat-rolled steel from Mexico; Article 509
Dear Mr. Woodul:
In your letter dated January 23, 1995, you requested a
ruling on the status of corrosion-resistant flat-rolled steel
from Mexico under the NAFTA.
Coils of hot-rolled and, in some cases, cold-rolled steel
will be imported from various countries into Mexico. The
countries from which these hot-rolled and cold-rolled products
are imported into Mexico are the countries in which the steel was
originally melted and the hot and cold-rolled coils produced. In
Mexico, the hot-rolled coils are pickled, cold-reduced, annealed
and then hot dipped in either a zinc or an aluminum-zinc bath.
The zinc coated product is described as "Galvanize coated" and
the aluminum-zinc coated product is described as "Galvalume" or
"Aluminum-zinc coated" steel sheet. These corrosion-resistant
products may also be painted in Mexico.
Hot-rolled carbon steel flat-rolled products of a width of
600 mm or more are classified under heading 7208 of the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). Cold-rolled carbon steel flat-rolled products of a
width of 600 mm or more are classified under heading 7209 of the
HTSUSA. Metal coated or corrosion-resistant carbon steel flat-
rolled products of a width of 600 mm or more are classified under
heading 7210 of the HTSUSA.
The applicable tariff provision for the unpainted zinc
coated flat-rolled products will be 7210.49.00, HTSUSA, which
provides for flat-rolled products of iron or nonalloy steel, of a
width of 600 mm or more, clad, plated or coated, otherwise plated
or coated with zinc, other. The general rate of duty will be 5.8
percent ad valorem.
The applicable tariff provision for the unpainted Galvalume
or aluminum-zinc coated flat-rolled products will be 7210.60.00,
HTSUSA, which provides for flat-rolled products of iron or
nonalloy steel, of a width of 600 mm or more, clad, plated or
coated, plated or coated with aluminum. The general rate of duty
will be 5.8 percent ad valorem.
The applicable tariff provision for the painted zinc coated
and painted aluminum-zinc coated flat-rolled products will be
7210.70.60, HTSUSA, which provides for flat-rolled products of
iron or nonalloy steel, of a width of 600 mm or more, clad,
plated or coated, painted, varnished or coated with plastics,
other. The general rate of duty will be 5.8 percent ad valorem.
The merchandise does not qualify for preferential treatment
under the NAFTA because one or more of the non-originating
materials used in the production of the goods will not undergo
the change in tariff classification required by General Note
12(t)/72.7, HTSUSA.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Should you wish to request an administrative review of this
ruling, submit a copy of this ruling and all relevant facts and
arguments within 30 days of the date of this letter, to the
Director, Office of Regulations and Rulings, U.S. Customs
Service, 1301 Constitution Ave. N.W., Franklin Court, Washington,
D.C. 20229.
With regard to your questions concerning applicability of
antidumping and countervailing duty (ADA/CVD) cases for flat-
rolled carbon steel products, we offer the following general
information. For a product to be substantially transformed for
ADA/CVD purposes (not for "Customs purposes"), the processing
performed on the product must result in a change in "class or
kind" of the product. The four classes or kinds of flat-rolled
carbon steel products for ADA/CVD purposes are hot-rolled, cold-
rolled, cut-to-length plate and corrosion-resistant. If, for
example, cold-rolled coils are produced in country A and are
processed into corrosion-resistant coils in country B, a change
in "class or kind" has occurred which, for the administration of
the ADA/CVD orders on carbon steel flat-rolled products,
constitutes a substantial transformation. If you would like
additional information regarding this matter, please contact
National Import Specialist Paula Ilardi at (212) 466-5476.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport