CLA-2-73:OT:RR:NC:1:117
Mr. Frank Prackler
Harold I. Pepper Co, Inc.
82 Pine Street
Suite 202
Freeport, NY 11520
RE: The tariff classification and country of origin determination of steel pipe from Korea
Dear Mr. Prackler:
In your letter dated January 26, 2009, on behalf of Matco Norca Inc., you requested a tariff classification ruling.
The items which are the subject of your inquiry are described as pipe nipples longer than 12 inches in length made in China from pre-cut Korean pipe. The originating pipe from Korea sent to China is described as ERW (Electric Resistance Welded) steel pipe made to ASTM A53 Grade A standards in galvanized and black finishes. The originating material is plain end and in lengths of 6.4 meters.
Subsequent information requested by us and received from you indicates that the pipe is cut and threaded in China into lengths of 14 inches to 72 inches and that nothing is attached to the pipe in China. Additional information also shows that the outside diameter of the pipes was expressed in a NPS (nominal pipe size) designation in a range from 1/8 inch to 4 inches. Our research of ASTM A53 standard indicates that NPS is not the outside diameter but is calculated in that standard to range from 10.3mm to 114.3mm. You also stated that the wall thickness ranges from 0.068 inches to 0.237 inches (1.73mm to 6.02mm).
The material composition or chemistry of the pipe was also submitted separately and stated to comply with ASTM A53, shows Carbon at 0.07-0.10%, Manganese at 0.42-0.50%, Phosphorous at 0.009-0.015% and Sulfur at 0.006-0.009%. Your information further shows that Silicon, Copper, Nickel, Chromium, Molybdenum and Vanadium for which you indicated you were not able to get exact percentages at this time are never more than 1%. ASTM A53 in a Table of Chemical Requirements lists as maximum percentages for Grade A of Type E (Electric Resistance Welded) pipe the following: Carbon 0.25%, Manganese 0.95%, Phosphorous 0.05%, Sulfur 0.045%, Copper 0.40%, Nickel 0.40%, Chromium 0.40%, Molybdenum 0.15%, and Vanadium 0.08%. Silicon is not listed as a component of ERW pipe in ASTM A53. For those components you could not furnish exact percentages, this office used the ASTM maximums as a benchmark for comparison with the definition of alloy steel in the Harmonized Tariff Schedule of the United States. Non-alloy steel, in accordance with the HTSUS may not contain 0.4% or more of Copper, 0.3% or more of Chromium, 0.3% or more of Nickel or 0.1% or more of Vanadium. Depending on your exact chemistry at time of import the pipes could be alloy or nonalloy. See HTSUS, Chapter 72, Note 1(f) for the definition of other alloy steel.
The applicable subheading for the pipe, if not alloy steel within the definition of Chapter 72, Note 1(f), will be 7306.30.50, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other tubes, pipes and hollow profiles, of iron or steel, other, welded, of circular cross section, of iron or nonalloy steel: having a wall thickness of 1.65mm or more. The rate of duty will be free.
The applicable subheading for the pipe, if alloy steel within the definition of Chapter 72, Note 1(f), will be 7306.50.50, Harmonized Tariff Schedules of the United States (HTSUS), which provides for other tubes, pipes and hollow profiles, of iron or steel: other, welded, of circular cross section, of other alloy steel: having a wall thickness of 1.65mm or more. The rate of duty is free. Ruling NY H84234 noted.
In addition to classification you state that you wish to establish the country of origin of the material described as pipe nipples. The final product is described in your inquiry as more than 75% Korean made.
Section 134.1(b) of the Customs Regulations defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin". A substantial transformation occurs when an article loses its separate identity and becomes a new article having a new name, character or use. We find that the origin of the pipe nipples is Korea. The pipe nipples do not lose their identity and are not substantially transformed when cut and threaded in China. Headquarters ruling HQ734186 noted.
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