CLA-2-82:RR:NC:1:104 J81173
Ms. Darlene DiBernardo
Deringer Logistics Consulting Group
1 Lincoln Blvd., Suite 225
Rouses Point, NY 12979
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a laying head pipe for a laying head machine from Canada; Article 509
Dear Ms. DiBernardo:
In your letter dated February 4, 2003 on behalf of Triple DDD Bending of Calgary, Alberta, Canada you requested a ruling on the status of a laying head tube from Canada under the NAFTA.
You state that seamless carbon steel tubes of French origin are imported into Canada. A representative sample of the tube would be a SA 213 T22 seamless steel tube with a 2” outside diameter x .361” wall thickness. These carbon steel tubes are classified under heading 7304, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel. In Canada, the tubes are heat treated in a natural gas furnace to make them malleable. Then they are bent on a jig to begin the forming process into a laying head coil, known in the industry as a “laying head pipe”. Once formed, this item cannot be used for any other operation other than as part of a laying head machine.
The laying head machine takes the final diameter rod from a rod mill and passes it through the progressively curved pipe which forms the rod into spiral rings which overlap as they are dropped onto a cooling bed conveyor. In this instance, round steel bar (rod) with diameters ranging from 7/32” to 23/32” are processed. At the end of the conveyor, the process of gathering the rings into a coil is accomplished. The laying head pipe is the tooling for the machine. The lifespan of the laying head pipe varies depending on the number of feet of rod run through it and the size of the rod. (A U.S. manufacture r of laying head pipes indicated that these pipes are in some instances changed as often as every two weeks.)
You suggest that this laying head pipe be classified under HTS subheading 8479.90.9495 as parts of machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, parts thereof: parts: other, other. The origin of the finished product would be Canada as referenced in 19 CFR 102.11(a)(3). The rule in 19 CFR 102.20 Section XVI: Chapter 84 through 85 states: “8479.90: A change to subheading 8479.90 from any other heading, except from heading 8501 when resulting from a simple assembly.” The raw material, the tube is classified in 7304 and would meet the tariff shift criteria expresses in 19 CFR 102.20.
In support of your position that 8479.90.9495 would be the correct classification you cite NY ruling 837323 dated March 9, 1989. In this ruling, the material is coiled and then banded on a single machine. In the present situation, the laying head forms the rod into rings but does not put the rings on a spool or band them together. As noted above, the spiral rings drop onto a cooling bed conveyor in an overlapping fashion and at the end of the conveyor they are gathered somehow into a coil. In essence, the laying head is performing a metal bending operation described in subheading 8462.29.80, HTS, which provides for machines tools for bending metal. The laying head pipe is a part of this bending machine however it is excluded from classification as parts under subheading 8466.94.85 by Section XVI, Note 1 (o) which indicates that the section does not cover interchangeable tools of heading 8207.
The non-originating seamless carbon steel tube used to make the laying head pipe has satisfied the change in tariff classification required under HTSUS General Note 12(t)/82.7: A change to subheading 8207.19 through 8207.90 from any other chapter. The laying head tube will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
The applicable subheading for the laying head pipe will be 8207.90.7585, Harmonized Tariff Schedule of the United States (HTS), which provides for interchangeable tools for handtools, whether or not power operated, or for machine tools …: other interchangeable tools, and parts thereof: other: other: not suitable for cutting metal, and parts thereof: other.
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.
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 Robert Losche at 646-733-3011.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division