CLA-2-72:OT:RR:NC:N1:117
David James Hammel
Gnutti Carlo USA Inc.
1101 Highview Drive
Webberville, Michigan 48892
RE: The tariff classification of steel bars from Italy
Dear Mr. Hammel:
In your letter dated October 28, 2019 you requested a tariff classification ruling.
The products to be imported, identified as 12.8L and 14.8L Engine Exhaust axles, are cut-to-length cold-drawn steel bars which will ultimately be used in diesel engines. Comprised of carbon (0.42% – 0.5%), silicon (max 0.4%), manganese (0.5% – 0.8%), nickel (max 0.4%), phosphorous (0.03%), sulfur (max 0.035%), chromium (max 0.4%) and molybdenum (max 0.1%), these bars measure 36.2 mm in diameter, have chamfered ends and a 7 mm drill hole on one end. After importation, the “axles” will undergo considerable further working such as drilling, deburring, case hardening, straightening, centerless grinding to final dimensions, etc. As stated in your submission, the function of the finished “axles” is “to provide the mounting and pivoting points for the exhaust rockers.”
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied. GRI 3(a) states in pertinent parts, “The heading
which provides the most specific description shall be preferred to headings providing a more general description.”
It appears that the exhaust axles are not advanced enough to be identifiable as parts of engines. In addition, the product in its imported condition is more specifically provided for in another subheading. As a result, classification of the exhaust axles in heading 8409, HTSUS, is precluded.
The applicable subheading for the exhaust axles with a chromium content less than 0.3% and a molybdenum content less than 0.08% will be 7215.90.5000, HTSUS, which provides for Other bars and rods of iron or nonalloy steel: Other: Other. The rate of duty will be free.
The applicable subheading for the exhaust axles with a chromium content 0.3% or more and/or a molybdenum content of 0.08% or more will be 7228.60.8000, HTSUS, which provides for Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or nonalloy steel: Other bars and rods: Other: Cold-formed. 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 9903.85.01 for aluminum. Products classified under subheadings 7215.90.5000 and 7228.60.8000, 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 April Cutuli at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division