CLA-2-40:OT:RR:NC:N2:201
William H. Sherman
Northern Customs Services Inc.
225 Old Falls Street, 4th Floor
Niagara Falls, NY 14303
RE: The tariff classification of used tires from multiple countries
Dear Mr. Sherman:
In your letter dated April 12, 2019 you requested a tariff classification ruling on behalf of your client, Casing Connections located in Buffalo, New York.
In your request, you posit the following import scenario. Casing Connections collects truck tire casings from all over Canada. You state that these casings are imported in unusable condition due to lack of tread. Casing Connections will have them re-treaded for the purpose of selling and/or distributing them. You state that the original country of origin of the new tires when initially imported into Canada varies.
You make the argument that the tires have no treading and can no longer be used in their current condition. All the wear and tear has taken place in Canada. As you state, this will ultimately change the item from tires to tire casings and the country of origin should be Canada. We disagree.
You asserted classification for this item under 4012.20.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for, “Retreaded or used pneumatic tires of rubber; solid or cushion tires, tire treads and tire flaps, of rubber: Other: Of a kind used on vehicles, including tractors, for the on-highway transport of passengers or goods, or on vehicles of heading 8705”. The country of origin for the tires does not change because of the wearing out of the tread, and even if it did there is no way to certify that “all” the wear was done on Canadian roads.
Retreaded, or used tires, in general are duty free, but you state that the origin of these tires when new varies. It is this offices opinion that these tires be separated by country and entered as such.
Please note, effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 4012.20.6000, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 4012.20.6000, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
In addition, 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/.
The applicable subheading for the used tires will be 4012.20.6000, HTSUS, which provides for “Retreaded or used pneumatic tires of rubber; solid or cushion tires, tire treads and tire flaps, of rubber: Other: Of a kind used on vehicles, including tractors, for the on-highway transport of passengers or goods, or on vehicles of heading 8705”. The general 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.
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 Matthew Sullivan at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division