CLA-2-72:OT:RR:NC:N1:117
William C. Faulhaber
Integer Holdings Corporation
5830 Granite Parkway, Suite 1150
Plano, TX 75024
RE: The tariff classification and country of origin of certain stainless steel wire imported from Ireland
Dear Mr. Faulhaber:
In your letter dated November 30, 2018 you requested a tariff classification ruling. Representative samples of your coated products were submitted with your request and will be returned to you under separate cover.
The merchandise in question is stainless steel wire; specifically, uncoated round wire, coated round wire and coated flat wire. According to your submission, spirally oscillated coils of U.S. made annealed round wire (ranging in diameter from 1.14 mm - 1.65 mm) are exported to Ireland where they are unwound, drawn, annealed, redrawn to smaller diameters and re-spooled. You indicate that the annealing and re-drawing may take place several times to achieve the required dimensions.
Once resized, some of the round wire stays as is, some is transported to another facility for the application of a friction reducing polytetrafluoroethylene (PTFE) coating and some is first flat-rolled then sent for coating with the same PTFE material. The uncoated round wire is produced in diameters ranging from .337 mm to .342 mm, the coated round wire is produced in diameters ranging from .076 mm to .635 mm and the coated flat wire will have a width of .254 mm with thicknesses ranging from .076 mm to .101 mm. After returning to the U.S., the spirally oscillated coils of stainless steel wire will be cut to size, formed and ultimately used as guidewires in the production of medical device components.
The applicable subheading for the coated and uncoated round wire measuring less than 0.25 mm in diameter will be 7223.00.1016, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Wire of stainless steel, Round wire: Other: With a diameter of less than 0.25 mm. The general rate of duty will be free.
The applicable subheading for the coated and uncoated round wire measuring 0.25 mm or more in diameter will be 7223.00.1031, HTSUS, which provides for Wire of stainless steel, Round wire: Other: With a diameter of 0.25 mm or more but less than 0.76 mm. The general rate of duty will be free.
The applicable subheading for the flat wire will be 7223.00.5000, HTSUS, which provides for Wire of stainless steel: Flat wire. The general rate of duty will be free.
In addition to classification, you have inquired as to the country of origin of this product and the applicability of Section 232 import duties.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. §1304. Pursuant to 19 CFR 134.1(b), “country of origin” means the country of manufacture, production, or growth of any article of foreign origin entering the United States. 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 results when a new and different article emerges from the processing having a distinctive name, character, or use.
A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
Based on the scenario described above, we find that the wire in question, regardless of size or coating, has not been substantially transformed in Ireland. The instant merchandise leaves the U.S. as stainless steel wire, and despite the annealing, drawing and possible flattening and/or coating performed overseas, maintains its identity as wire. Therefore, we are of the opinion that the country of country of origin of the subject wire is the U.S. and, as such, Section 232 duties are not applicable.
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.
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 April Cutuli at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division