CLA-2-73:OT:RR:NC:1:117
Mr. Reid Sheply
Boshart Industries Inc.
25 Whaley Avenue
Milverton, Ontario NOK 1MO
RE: The tariff classification and country of origin determination of steel pipe from Korea
Dear Mr. Sheply:
In your letter dated August 7, 2013 you requested a tariff classification ruling. You have submitted a mill certificate with your inquiry.
The items under consideration are described as ready cut pipe over 12” in length that are black and galvanized, welded nonalloy steel pipe, threaded on both ends, and used in the plumbing industry. They will be imported from Korea. The pipes will range in diameter from 10.3 mm to 114.3mm with wall thickness ranging from 1.73mm to 7.11mm. They meet ASTM A53 standard specification for pipe, steel, black and hot-dipped, zinc-coated, welded and seamless.
Although the mill certificate submitted showed percentages of elements within the tariff meaning of nonalloy steel, the ASTM A53 specification maximums can be within the tariff definition of alloy steel. Nonalloy steel, in accordance with the HTSUS may not contain, among other elements, 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), and if galvanized will be 7306.30.5032, 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; other; other; with an outside diameter not exceeding 114.3mm: galvanized; other. The rate of duty will be free.
The applicable subheading for the pipe, if not alloy steel within the definition of Chapter 72, Note 1(f), and if not galvanized will be 7306.30.5055, 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; other; other; with an outside diameter not exceeding 114.3mm: other; other. 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 7306.50.5050, 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; other; other: with an outside diameter not exceeding 114.3mm. The rate of duty is free.
In addition to classification you state that you desire to establish the country of origin. These pipes are manufactured in The Republic of Korea and sold to China where they are cut to length and threaded on both ends.
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. The origin of the pipe is Korea. The pipe does not lose its identity and is not substantially transformed when cut and threaded in China. For U.S. Customs purposes the country of origin of the pipes remains Korea.
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,
Myles B. Harmon
Acting Director
National Commodity Specialist Division