CLA-2-72:S:N:N1:117 875352

Mr. John C. Lindsey
Baker & Hostetler
Washington Square, Suite 1100
1050 Connecticut Avenue, N.W.
Washington, D.C. 20036-5304

RE: The tariff classification of steel plates from Japan.

Dear Mr. Lindsey:

In your letter dated June 9, 1992 on behalf of CBI Na-Con, Inc., you requested a tariff classification ruling.

The products to be imported are bottom plates, bottom annular plates, shell plates, and shell stiffeners for a storage tank. After importation, these imported plates, along with plates of U.S. manufacture, will be assembled into an interior tank of a double-walled, liquefied gas storage tank. Drawings and illustrations of the various plates and of the assembled storage tank were submitted with your ruling request.

All the imported plates are made from hot-rolled alloy steel plate which contains 9 percent by weight of nickel and 0.02 percent by weight of chromium. The bottom and shell plates measure over 600 mm in width and over 4.75 mm in thickness. The shell stiffeners measure less than 600 mm in width and over 4.75 mm in thickness. Prior to importation, the shell plates are cut to rectangular shape of the required size, beveled on one side and formed into a shallow U shape along the width. The bottom plates are cut to both rectangular and nonrectangular shape of the required size. The bottom annular plates and the shell stiffeners are cut to nonrectangular shape. The applicable subheading for the hot-rolled alloy steel bottom plates cut to rectangular shape will be 7225.40.30, Harmonized Tariff Schedule of the United States (HTS), which provides for flat-rolled products of other alloy steel, of a width of 600 mm or more, other, not further worked than hot-rolled, not in coils, of a thickness of 4.75 mm or more, other. The rate of duty will be 3.8 percent ad valorem.

The applicable subheading for the hot-rolled alloy steel bottom plates and bottom annular plates cut to nonrectangular shape and the shell stiffeners cut to nonrectangular shape will be 7225.90.00, HTS, which provides for flat-rolled products of other alloy steel, of a width of 600 mm or more, other. The rate of duty will be 5.8 percent ad valorem.

The applicable subheading for the hot-rolled alloy steel shell plates which are formed into a shallow U shape along the width will be 7326.90.90, HTS, which provides for other articles of iron or steel, other, other, other. The rate of duty will be 5.7 percent ad valorem.

You suggest in your ruling request that the all the steel plates other than the shell plates are classifiable under HTS subheadings that provide for flat-rolled products not further worked than hot-rolled. In support of this position, you cite Chapter 72 Additional U.S. Note 2 which states that unless the context provides otherwise, the term "further worked" refers to products subjected to various types of surface treatments and cladding. Since Additional U.S. Note 2 limits "further working" to only surface treatments and cladding, it is not all inclusive as far as what constitutes "further working" operations. For example, this note does not mention any mechanical working such as drilling, punching, beveling, etc., yet any such mechanical operations would usually be done after a product is hot-rolled or cold-rolled. A flat-rolled product that is hot-rolled and then punched or perforated is obviously "further worked after hot- rolling". A flat-rolled hot-rolled product which has been cut, pressed or stamped to nonrectangular shape is considered to be "further worked than hot-rolled". See the Subheading Explanatory Notes to Subheadings 7225.30 and 7225.40 which refer to the Subheading Explanatory Notes to Subheadings 7208.11 through 7208.45. 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.


Sincerely,

Jean F. Maguire
Area Director
New York Seaport