CLA-2-73:OT:RR:NC:N1:116
Mr. Scott Lindsey
Weir Oil & Gas
601 Weir Way
Fort Worth TX 76108
RE: The tariff classification of sub body forgings from China
Dear Mr. Lindsey:
In your letter dated August 5, 2019, you requested a tariff classification ruling.
The products to be imported are described as sub body forging blanks that are used interchangeably in various applications within a hydraulic fracking manifold system. The forgings are made of 4140 alloy steel and are unfinished, non-functional blanks that are forged/rolled, quenched, and tempered. All further processing is done after importation.
You have suggested classification in 7326, Harmonized Tariff Schedule of the United States (HTSUS). This office disagrees. Heading 7326 provides for other articles of iron or steel that are not more specifically provided for elsewhere in the tariff. An article is precluded from classification under 7326, HTSUS, if the article is more specifically provided for in any other heading of the tariff. Noting that the subject steel sub body forgings in their condition as imported are provided for under another heading of the tariff, the steel forging sub bodies under consideration would not be classified under heading 7326, HTSUS.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRIs taken in order.
GRI 2(a) states as follows:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finshed by virtue of this rule), entered unassembled or disassembled.
Although the sub body forging blanks cannot perform the function of the finished sub body forgings, at the time of importation they are identifiable as sub body forgings and have the essential character of the finished sub body forgings. The applicable subheading for the sub body forging blanks will be 7307.99.3000, HTSUS, which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: other: other: not machined, not tooled and not otherwise processed after forging: of alloy steel (except stainless steel). The rate of duty will be 3.2%.
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 at https://hts.usitc.gov/current.
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). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 7307.99.30, HTSUS, unless specifically excluded, are subject to the additional 25 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 7307.99.30, 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.
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