CLA-2-73:OT:RR:E:NC:1:117
Mr. Bryan Davis
AIDA-America Corp
7660 Center Point 70 Blvd.
Dayton, Ohio 45424
RE: The tariff classification of galvanized steel pipe from Japan.
Dear Mr. Davis:
In your letter dated December 16, 2008, you requested a tariff classification ruling. Illustrations were submitted.
The item you plan to import is galvanized steel pipe. These pipes are seamless, cold-drawn and have an outside diameter measuring less than 114.3 mm. You state that they are intended solely for use in the manufacture of stamping presses.
In your letter, you suggest classifying the pipe in subheading 8466.94.8585, HTSUS, which provides for parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Other: For machines of heading 8462 or 8463: Other: Other … Other. As subheading 8466.94.8585, HTSUS, falls within Section XVI, it is necessary to consider Note 2 to Section XVI which addresses the classification of parts of the machines of Section XVI. Said note indicates that (a) parts of machines which are goods included in any of the headings of chapters 84 and 85 are in all cases to be classified in their respective headings and (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading are to be classified with the machines of that kind.
However, when classifying parts of a machine it is also necessary to consider Additional U.S. Rule of Interpretation (“AUSRI”) 1(c), HTSUS, which reads
In the absence of special language or context which otherwise requires … a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for “parts” or “parts and accessories” shall not prevail over a specific provision for such part or accessory.
Note 2 to Section XVI is such “special language or context”. However, it would only be applicable in instances where both the competing provisions are within Section XVI. As subheading 7304.39.0016, HTSUS, lies outside of Section XVI, Note 2 cannot be said to provide the “special language or context” necessary to supersede AUSRI 1(c).
The next step is to determine if a specific provision exists for the pipe in question.
You believe that were it not for Note 1(f) to Section XV the pipe would be classified in subheading 7304.39.0016, HTSUS, which provides for tubes, pipes and hollow profiles, seamless, or iron (other than cast iron) or steel: Other, of circular cross section, of iron or nonalloy steel: Other…Other: Galvanized, having an outside diameter not exceeding 114.3mm. Note 1(f) to Section XV states, in part, that chapter 73 does not cover “Articles of section XVI (machinery, mechanical appliances and electrical goods)”.
It is this office’s opinion that Note 1(f) to Section XV does not apply in this case. HQ 954365 dated September 14, 1993, states that,
It is our position that parenthetical language should be strictly interpreted, unless the explanatory notes expand the scope of the parenthetical language, thereby mandating a liberal interpretation.
In addition, the analysis used in HQ 561353 dated September 19, 2002 can be applied to this case. HQ 561353 reads, in pertinent part,
We believe that the exclusion in Note 1(f) to Section XV does not apply because the electrode wire is not “machinery, mechanical appliances or electrical goods.” Note 1(f) does not exclude goods which could be considered as “parts” of such machinery, mechanical appliances or electrical goods. In this respect, we point out that the HTSUS has been clear as to the exclusion of “parts” elsewhere in the HTSUS. For example, in the exclusionary Note 3(k) to Chapter 71, the exclusion specifically identifies “machinery, mechanical appliances or electrical goods, or parts thereof, of Section XVI.” (Emphasis added.) Therefore, the legal text of Note 1(f) to Section XV, which is narrower in scope, was not intended to exclude certain products which, although they could be considered as “parts” by virtue of their use, are clearly defined in the provisions of Section XV.
Thus, consistent with the analysis of HQ 561353, it is this office’s opinion that the exclusionary language of Note 1(f) to Section XV does not cover parts of machines, and mechanical or electrical appliances of Section XVI, HTSUS. Subheading 7304.39.0016, HTSUS, is not a residual provision for articles of iron or steel. As such, it is a more specific provision than a provision for “parts” for purposes of AUSRI 1(c), HTSUS. Thus, by virtue of AUSRI 1(c), HTSUS, classification in subheading 8466.94.8585, HTSUS, is precluded.
You stated in a telephone conversation that the pipes were cold-drawn, therefore, they are precluded from classification under subheading 7304.39.0016 as you suggested.
The applicable subheading for the galvanized steel pipe will be 7304.31.6050, HTSUS, (HTSUS), which provides for tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel, other, of circular cross section, of iron or nonalloy steel, cold-drawn or cold-rolled (cold reduced), other, other. The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
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 Mary Ellen Laker at (646) 733-3020.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division