CLA-2-73:OT:RR:NC:N1:121
David G. Forgue
Barnes, Richardson & Colburn, LLP
303 East Wacker Drive
Chicago, IL 60601
RE: The tariff classification of horseshoe nails from China
Dear Mr. Forgue:
In your letter dated December 3, 2021 you requested a tariff classification ruling on behalf of Farrier Product Distribution, Inc.
The merchandise under consideration is two types of horseshoe nails. The first type is described as an uncoated carbon steel nail, and the second type is described as a copper coated carbon steel nail. The nails are approximately 25.4 millimeters in length and 1.65 millimeters in width. The nails are not collated and are sold in boxes. Both types of nails are used to secure horseshoes to the hooves of horses.
You state in your request that the nails begin their production process as a round wire which is passed through a cold drawing machine employing a series of dies to form the round wire into a rectangular wire. This resulting rectangular wire is cut-to-length and pressed in a forge to begin adding more complete horseshoe nail features. Succeeding operations then trim a sharp point at the end, add bevels to the shank, finish shaping the head, add the manufacturer’s logo, coat the nails (for copper coated style only) and polish the nails. The two types of nails are produced from the same material and go through the same production process until the coating stage. At that point the coated nails have a copper coating added to them before they are polished.
In your request, you suggest the uncoated carbon steel nail is properly classified under subheading 7317.00.5520 Harmonized Tariff Schedule of the United States (HTSUS), and the copper coated nail is properly classified under 7317.00.5550, HTSUS, however, this office disagrees because the subject merchandise you describe is cut nails. You indicate that round wire is passed through a cold drawing machine that employs a series of dies to form the round wire into rectangular wire. That processing changes the round wire into a different product and classification. The rectangular wire is wound around a spool and used for further manufacturing. According to your documentation, both types of nails are cut-to-length from the rectangular wire and then pressed in a forge to begin adding more complete horseshoe nail features to the metal. The nails are cut from the rectangular wire, not round wire, therefore the nails in question are considered cut nails and not nails made of round wire.
The applicable subheading for the uncoated and copper coated carbon steel horseshoe nails will be 7317.00.6530, HTSUS, which provides for Nails, tacks, drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material, but excluding such articles with heads of copper: Other: Of one piece construction: Other: Cut. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7317.00.6530, HTSUS, unless specifically excluded, are subject to an additional 25% percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 7317.00.6530, 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.
The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.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 World Wide Web at https://hts.usitc.gov/current.
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 Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division