CLA-2-73:OT:RR:NC:N1:117
Mr. Dustin Adams
President
PDA International Logistics, Inc.
15 Willow Lane
Glen Spey, NY 12737
RE: The tariff classification of pipes from Korea
Dear Mr. Adams:
In your letter dated February 28, 2017 you requested a tariff classification ruling on behalf of your client Alro Products International LLC.
The products that are intended for import are various lengths of black steel pipe and galvanized steel pipe. All pipes as imported into the U.S. will be more than 12 inches in length. The originating pipes are manufactured in Korea and then sent to China for cutting into shorter lengths, chamfering, threading, cleaning, anti-rusting, inspecting and packing.
Mill test certificates submitted show that the pipes are of different types. There is ERW (Electric Resistance Welded) steel pipe made to ASTM A-53, Grade A, both black and galvanized pipe. The mill certificates and your statement indicate that the pipes are non-alloy. You indicate that sizes range from 3/8 inch to 4 inches in outside diameter, and from 18 inches to 72 inches in length. The wall thicknesses are shown on all mill certificates to exceed 0.0649 inches or more than 1.65 mm The use for the piping is stated to be for plumbing.
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. Ruling NY H84234 noted.
The merchandise in question may be subject to antidumping duties or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
In addition to classification you state that you wish to establish the country of origin of the described pipes which will be imported from China after being exported from Korea to China for further processing.
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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 pipes is Korea. The pipes do not lose their identity and are not substantially transformed when cut and processed as you describe in China. The product manufactured in Korea is pipe and the product to be imported from China remains pipe. 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 https://hts.usitc.gov/current.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division