CLA-2-73:OT:RR:NC:N1:116
Mr. Kevin Williams
Clark Hill PLC
130 E Randolph Street
Chicago, Illinois 60601
RE: The tariff classification of stainless steel tubes from China
Dear Mr. Williams:
In your letter dated November 23, 2020, you requested a tariff classification ruling on behalf of your client, Benteler Automotive Corporation.
The products under consideration are Grade 316L (ASTM 240/A240M) welded stainless steel tubes for use as the internal tubes in exhaust gas recirculation (EGR) systems. These straight cut-to-length tubes measure 7 mm in outside diameter with a wall thickness of 0.25 mm. According to the chemical composition provided, the tubes consist of 10.06 percent nickel and 2.05 percent molybdenum. After importation, additional manufacturing (i.e., crimping) is required before the tubes can be used as part of an EGR system. Once incorporated into the system, the tubes serve as a conduit for the exhaust gas.
In your letter, you propose classifying the stainless steel tubes under 8419.90.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Parts: Of heat exchange units." Based upon the information submitted, at the time of importation the subject products are merely stainless steel tubes that require further fabrication in order to become part of the EGR system. Thus, classification under subheading 8419.90.3000, HTSUS, would not be appropriate.
The applicable subheading for the stainless steel tubes will be 7306.40.1000, HTSUS, which provides for other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: other, welded, of circular cross section, of stainless steel: having a wall thickness of less than 1.65 mm, containing more than 0.5 percent by weight of nickel: containing more than 1.5 percent but less than 5 percent by weight of molybdenum. 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 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 subheading 7306.40.1000, 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 subheading 7306.40.1000, 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 subheading 7306.40.1000, 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.
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