CLA-2-73:RR:NC:1:117 E81820

Mr. Gerardo Montemayor
Rafael A. Morales, Inc.
509 Interamerica Blvd.
Interamerica Industrial Park
Laredo, Texas 78045

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of steel pipe from Mexico; Article 509

Dear Mr. Montemayor:

In your letter dated April 28, 1999 on behalf of Tuberia Laguna S.A. de C.V., you requested a ruling on the status of API 5L ERW line pipe from Mexico under the NAFTA.

Hot-rolled flat-rolled carbon steel in coils ranging from 23 inches to 77 inches in width and from 0.242 inch to 0.365 inch in thickness are produced in Russia and imported into Mexico. These hot-rolled coils are classified under headings 7208 (of a width of 600 mm or more) and 7211 (of a width of less than 600 mm), Harmonized Tariff Schedule of the United States (HTSUS). In Mexico, the flat-rolled steel coils will be manufactured into API 5L line pipe using an electric-resistance welding process. Welded line pipe of a kind used for oil or gas pipelines which is imported into the United States from Mexico is classified under HTS subheadings 7305.12.10 or 7306.10.10 (depending on external diameter size).

The non-originating hot-rolled flat-rolled steel used to make the line pipe has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/73.6: “A change to headings 7305 through 7307 from any other chapter.”

The ERW line pipe having an outside diameter exceeding 406.4 mm which is classified under HTS subheading 7305.12.10 will be entitled to a 0.7 percent rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The ERW line pipe having an outside diameter which doesn’t exceed 406.4 mm which is classified under HTS subheading 7306.10.10 will be entitled to a 0.7 percent rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

If you have any questions as to whether the products you plan to import are covered by antidumping orders, you may call your local Customs port. We cannot issue binding rulings on such matters.

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Paula Ilardi at 212-637-7016.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division