NY 859111

JAN 16 1991


CLA-2-73:S:N:N1:117 859111

Mr. Robert A. Pietrandrea
National Rail Products Inc.
381 Mansfield Avenue, Suite 115
Pittsburgh, Pa. 15220

RE: The tariff classification of steel rails from Canada.

Dear Mr. Pietrandrea:

In your letter dated December 5, 1990, you requested a tariff classification ruling.

The products to be imported are new railroad rails of both nonalloy and alloy steel. You state that these are second quality rails, that is, they contain minor dimensional and/or metallurgical specification deviations which prevent them from being considered prime material. You also state that these rails would be used for tracks other than mainline tracks. They could, for example, be used in industrial plants. The applicable subheading for the new nonalloy steel rails will be 7302.10.10, Harmonized Tariff Schedule of the United States (HTS), which provides for railway or tramway track construction material of iron or steel, rails, of iron or nonalloy steel. The duty rate will be 0.3 percent ad valorem. Goods classifiable under subheading 7302.10.10, HTS, which have originated in the territory of Canada, will be entitled to a 0.2 percent ad valorem rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations.

The applicable subheading for the new alloy steel rails will be 7302.10.50, HTS, which provides for railway or tramway track construction material of iron or steel, rails, of alloy steel. The duty rate will be 3.5 percent ad valorem.

Goods classifiable under subheading 7302.10.50, HTS, which have originated in the territory of Canada, will be entitled to a 2.4 percent ad valorem rate of duty under the United States- Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

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.

Enclosed is a copy of Customs telex 02508 dated March 13, 1989 on the antidumping duty investigation of new steel rail which you requested.

Sincerely,

Jean F. Maguire
Area Director
New York Seaport