CLA-2-72:OT:RR:NC:N1:117
Donald S. Stein
Greenberg Traurig LLP
2101 L Street N.W.
Washington, DC 20037
RE: The tariff classification of various steel bars from China, Ukraine or Slovenia
Dear Mr. Stein:
In your letter dated September 15, 2020, on behalf of your client, SB Specialty Metals LLC, you requested a tariff classification ruling.
The products in question are various cold-finished round bars. According to your submission, these bars will be imported in stainless steel grades 440C and 420 ESR and alloy steel grades L6 and Cru501. Although each of these steels are referred to as tool steel in the furnished spec sheets, they do not meet the chemical requirements of a tool steel as defined in Chapter 72, Additional U.S. Note 1(e).
You indicate that the stainless steel bars will have a diameter of either 12.70 mm or 101.60 mm, while the alloy bars will measure either 50.80 mm or 101.60 mm. In addition, you state that both types of bars are available in lengths from 8-16 feet but are generally supplied in lengths of 10-12 feet.
Based on their size, you suggest classification of the cold-finished stainless steel bars in either subheading 7222.20.0041, Harmonized Tariff Schedule of the United States (HTSUS) or subheading 7222.20.0062, HTSUS. However, since these bars are produced by electroslag remelting, they are more specifically provided for earlier in the subheading.
The applicable subheading for the stainless steel bars will be 7222.20.0001, HTSUS, which provides for Other bars and rods of stainless steel; angles, shapes and sections of stainless steel: Bars and rods, not further worked than cold-formed or cold-finished: Electroslag or vacuum arc remelted. The rate of duty will be free.
The applicable subheading for the alloy steel bars measuring 50.80 mm in diameter will be 7228.50.5015, 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, not further worked than cold-formed or cold-finished: Other: Other: With a diameter or cross section measuring less than 76 mm. The rate of duty will be free.
The applicable subheading for the alloy steel bars measuring 101.60 mm in diameter will be 7228.50.5040, 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, not further worked than cold-formed or cold-finished: Other: Other: With a diameter or cross section measuring 76 mm or more but not exceeding 228 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.
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 7222.20.0001, 7228.50.5015 and 7228.50.5040, 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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7222.20.0001, 7228.50.5015 and 7228.50.5040, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 7222.20.0001, 7228.50.5015 and 7228.50.5040, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively. Please note that the bars in question, when imported from Ukraine or Slovenia, will be subject to the 232 Trade Remedy. However, when these bars are imported from China, they will be subject to both the 232 and 301 Trade Remedies.
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