CLA-2-73:OT:RR:NC:N1:117
Ms. Ellen A. DiLapi
Sumitomo Corporation of Americas
1979 Marucs Avenue, Suite 220
Lake Success, NY 11042
RE: The tariff classification and country of origin of clad steel line pipe
Dear Ms. DiLapi:
In your letter dated June 11, 2019, you requested a tariff classification ruling.
The product under consideration is seamless alloy steel line pipe. According to your submission, Japanese origin line pipe made to API Specification 5L is exported to Indonesia where it will be internally clad with a 3-5 mm layer of Inconel 625 (nickel alloy material). The pipe has an outside diameter of 6.625 inches (168.28 mm) and a wall thickness of 1.119 inches (28.42 mm). You indicate that the purpose of the cladding (welding overlay) material is to create a corrosion and wear-resistant layer on the inside of the pipe.
The applicable subheading for the clad steel line pipe will be 7304.19.5050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel: line pipe of a kind used for oil or gas pipelines: other: of other alloy steel: having an outside diameter exceeding 114.3 mm but not exceeding 406.4 mm. 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.
In your letter, you also requested a country of origin determination. Section 134.1(b), Customs Regulations (19 CFR 134.1(b)), 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” within this part. A substantial transformation occurs when articles lose their identity and become articles having a new name, character or use. This office finds that cladding the steel pipe in Indonesia does not effect a substantial transformation. As such, we find the country of origin of the pipe to be Japan.
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 9903.85.01 for aluminum. Products classified under subheading 7304.19.1030, HTSUS, may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 subheading applicable to your product classification in addition to the Chapter 72, 73 or 76 subheading 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 subheadings.
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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division