CLA-2-72:RR:NC:1:117 I82305
Ms. Cheryl Ellsworth
Harris Ellsworth & Levin
The Watergate
2600 Virginia Avenue, N.W., Suite 1113
Washington, D.C. 20037-1905
RE: The tariff classification of steel circles from Belgium.
Dear Ms. Ellsworth:
In your letter dated May 9, 2002 on behalf of Trinity Industries, Inc., you requested a tariff classification ruling.
The products to be imported are 9 percent nickel alloy steel circles and test coupons. The steel circles or circle blanks and the test coupons are cut from hot-rolled steel plate made to ASTM Specification A 353. ASTM Specification A 353 is the Standard Specification for Pressure Vessel Plates, Alloy Steel, 9 Percent Nickel, Double-Normalized and Tempered. The plate ranges from 0.341 inch to 0.925 inch in thickness. The test coupons are rectangular in shape. The circles range from 76 inches to 125 inches in diameter and the test coupons typically measure approximately 12 inches by 24 inches. Typically, two steel circles and one test coupon are cut from each steel plate. A hot plasma torch machine is used to cut these pieces from the plate. The circles will ultimately be used in the production of tank heads for pressure vessels. After importation, the circles are heated and pressed into the specified tank head shape, diameter and thickness; the test coupons will be cut to suitable specimen sizes for determining tensile and toughness properties of the steel. If the test coupons confirm the specified mechanical properties, the corresponding tank heads are shipped to the customers.
You express the opinion that the steel circles and test coupons are classifiable under HTS heading 7326 which provides for other articles of iron or steel rather than in Chapter 72. You cite Motor Wheel Corp. v. United States [(19 CIT 385 (1995)] to support your position. In Motor Wheel, the Court found that steel in circular shapes cut from flat-rolled steel of heading 7208, HTS, by an automated cookie cutter process constituted a stamping made from flat-rolled steel. Since heading 7326.19 includes the phrase “forged or stamped, but not further worked”, the Court held
that the circular shapes had assumed the character of goods of another heading and were classifiable as other articles of iron or steel, forged or stamped, but not further worked, in subheading 7326.19.00, HTS. However, it appears that the steel circles and test coupons that are the subject of this ruling are not made by a stamping process but by a torch cutting process. They are therefore distinguishable from the circles ruled upon in Motor Wheel.
Chapter 72 Note 1. (k), HTS, defines flat-rolled products in part as rolled products of solid rectangular (other than square) cross section, and include flat-rolled products of a shape other than rectangular or square, of any size, provided that they do not assume the character of articles or products of other headings. Because the steel circles and test coupons at issue are produced by a cutting operation and not by a stamping operation, they have not assumed the character of articles of another heading and are not covered by the decision in Motor Wheel. This issue has been addressed in HQ ruling 963255 dated April 28, 2000. These products are classifiable under the appropriate subheadings in Chapter 72.
The applicable subheading for the steel circles will be 7225.99.0090, 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, other, other. The rate of duty will be 1.2 percent ad valorem.
The applicable subheading for the steel rectangles/test coupons measuring 600 mm or more in width will be 7225.40.3050, 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, other. The rate of duty will be 0.8 percent ad valorem.
The applicable subheading for the steel rectangles/test coupons measuring less than 600 mm in width will be 7226.91.5000, HTS, which provides for flat-rolled products of other alloy steel, of a width of less than 600 mm, other, not further worked than hot-rolled, other, of a thickness of 4.75 mm or more. The rate of duty will be 0.8 percent ad valorem.
On March 5, 2002, President Bush proclaimed additional tariffs and quotas on a number of steel mill products for a period of three years. Products classified under HTS subheadings 7225.40.3050 and 7226.91.5000, unless specifically excluded, are subject to additional duties. See subheadings 9903.72.50 through 9903.72.62, copy attached. Based upon information recently received with regard to additional products to be excluded from Section 201, nine-percent nickel alloy steel plate made to ASTM Specification A 353 appears to be an excluded product. This exclusion is designated X-083.041. At the time of importation, you must provide a complete description of this product and report the applicable Chapter 99 number in addition to the Chapter 72 numbers listed above.
The Proclamation is subject to periodic amendment of the exclusions, and the additional tariffs are reduced in the second and third years of the program, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamation.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 646-733-3020.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division