CLA-2-73:OT:RR:NC:N1:117
Mr. Masaya Fujita
Marubeni Itochu Steel America Inc.
20 North Martingale Rd
Schaumburg, IL 60173
RE: The tariff classification of exhaust tubes from Canada
Dear Mr. Fujita:
In your letter dated July 25, 2018, you requested a tariff classification ruling.
The products you plan to import are exhaust tubes for Subaru automobiles and Sport Utility Vehicles (SUVs): Subaru BF4, Legacy & Outback, Subaru HR3, Impreza and Subaru TR8, Ascent. These welded, stainless steel tubes have wall thicknesses of 1.2 mm, outside diameters ranging from 38.1 mm to 63.5 mm and lengths ranging from 515 mm to 915 mm.
You suggested classification of the exhaust tubes in heading 8708, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts and accessories of motor vehicles. This office disagrees with your proposed classification.
Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. GRI 3(a) states that the heading which provides the most specific description shall be preferred to headings providing a more general description.
Furthermore, Additional U.S. Rule of Interpretation 1(c) states, "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."
From the information and pictorial diagrams provided, it appears that the exhaust tubes under consideration are simply pipes that have not been made into a specific identifiable article. As a result, they are more specifically provided for as pipes of heading 7306, HTSUS, rather than parts and accessories of motor vehicles of heading 8708, HTSUS.
The applicable subheading for the exhaust tubes will be 7306.40.1090, HTSUS, which provides for other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: other, welded, of circular cross section, of stainless steel, having a wall thickness of less than 1.65 mm, 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 the World Wide Web at https://hts.usitc.gov/current.
On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a number of steel and aluminum mill products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.03 for aluminum. Products classified under HTSUS subheading 7304.40.1090 may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 number applicable to your product classification in addition to the Chapter 72, 73 or 76 number listed above.
The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 numbers.
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