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 alloy steel bars from China, Ukraine or Slovenia
Dear Mr. Stein:
In your letter dated October 12, 2020, on behalf of your client, SB Specialty Metals LLC, you requested a tariff classification ruling.
The products under consideration are Grade M2 high-speed steel round bars, Grade T15 high-speed steel flat bars and Grade D2, A2 and S7 tool steel flat bars. You indicate that the bars are available in lengths from 8-16 feet but are generally supplied in lengths of 10-12 feet.
Based on the information provided, the Grade M2 high-speed steel round bars are cold-finished and have a diameter of 25.4 mm. The Grade T15 high-speed steel flat bars are hot-rolled and measure 8.7 mm in thickness and 13.4 mm in width. You state that after importation, both the round and flat bars will be processed into fixtures and components used to form, shape and secure other materials in various manufacturing operations.
The Grade D2, A2 and S7 tool steel flat bars are hot-rolled and have the following dimensions: Grade D2 measures 50.80 mm in thickness and 84.00 mm in width; Grade A2 measures 50.80 mm in thickness and 76.25 mm in width and Grade S7 measures 35 mm in thickness and 75 mm in width. These bars will ultimately be made into tools, dies, and molds which are then used to shape, form, and cut other materials into finished and/or semi-finished products.
The applicable subheading for the Grade M2 and the Grade T15 high-speed steel bars will be 7228.10.0010, Harmonized Tariff Schedule of the United States (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: Bars and rods, of high-speed steel: Not cold-formed. The rate of duty will be free.
The applicable subheading for the Grade D2, A2 and S7 tool steel flat bars will be 7228.30.6000, 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 hot-rolled, hot-drawn or extruded: Of tool steel (other than high-speed steel): Other. 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 7228.10.0010 and 7228.30.6000, 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 7228.10.0010 and 7228.30.6000, 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 7228.10.0010 and 7228.30.6000, 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