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 certain flat-rolled alloy steel from China, Ukraine or Slovenia
Dear Mr. Stein:
In your letter dated October 28, 2020, on behalf of your client, SB Specialty Metals LLC, you requested a tariff classification ruling.
The products under consideration are two types (M2 and D2) of flat-rolled alloy steel. Imported in cut lengths, the M2 product has a width of 600 mm and a thickness of 3 mm, while the D2 product will measure 800 mm in width and 3.5 mm in thickness. You indicate that in their country of manufacture these products are hot-rolled from ingots, and subsequently annealed, but will not undergo any further processing prior to entry into the United States.
The applicable subheading for the M2 will be 7225.40.5110, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Flat-rolled products of other alloy steel, of a width of 600 mm or more: Other, not further worked than hot-rolled, not in coils: Of a thickness of less than 4.75 mm: Of tool steel: Of high-speed steel. The rate of duty will be free.
The applicable subheading for the D2 will be 7225.40.5160, HTSUS, which provides for Flat-rolled products of other alloy steel, of a width of 600 mm or more: Other, not further worked than hot-rolled, not in coils: Of a thickness of less than 4.75 mm: Of tool 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 7225.40.5110 and 7225.40.5160, 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, 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 7225.40.5110 and 7225.40.5160, 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 products in question, when imported from Ukraine or Slovenia, will be subject to the 232 Trade Remedy. However, when imported from China, these products 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