CLA-2-72:OT:RR:NC:N1:117
Donna M. Klavon
WF Whelan Logistics
41425 Joy Road
Canton, Michigan 48128
RE: The tariff classification of flat-rolled stainless steel from Germany, Italy, China or Romania
Dear Ms. Klavon:
In your letter dated February 24, 2022, on behalf of your client, Witzenmann USA LLC, you requested a tariff classification ruling.
The merchandise in question is a Type 316Ti stainless steel flat-rolled product made to ASTM A240, the Standard Specification for Chromium and Chromium-Nickel Stainless Steel Plate, Sheet and Strip for Pressure Vessels and General Applications. Imported in coil form, this cold-rolled material is available in a variety of sizes with thicknesses ranging from 0.15 mm to 0.30 mm and widths ranging from 130 mm to 300 mm. Based on your submission, this product is used in the manufacture of automotive exhaust assemblies.
You suggest classification of the subject merchandise in 7220.20.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Flat-rolled products of stainless steel, of a width of less than 600 mm: Not further worked than cold-rolled (cold-reduced): Of a width of less than 300 mm: Of a thickness not exceeding 0.25 mm: Razor blade steel. However, your product fails to meet the chemical, size and use requirements of razor blade steel specified in Chapter 72, Additional U.S. Note 1(d). Therefore, it is precluded from classification in this subheading.
The applicable subheading for those products with a width of 300 mm will be 7220.20.1010, HTSUS, which provides for Flat-rolled products of stainless steel, of a width of less than 600 mm: Not further worked than cold-rolled (cold-reduced): Of a width of 300 mm or more: Containing more than 0.5 percent but less than 24 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.
The applicable subheading for those products with a width of less than 300 mm and a thickness of more than 0.25 mm will be 7220.20.7010, HTSUS, which provides for Flat-rolled products of stainless steel, of a width of less than 600 mm: Not further worked than cold-rolled (cold-reduced): Of a width of less than 300 mm: Of a thickness exceeding 0.25 mm but not exceeding 1.25 mm: Other: 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.
The applicable subheading for those products with a width of less than 300 mm and a thickness of 0.25 mm or less will be 7220.20.9030, HTSUS, which provides for Flat-rolled products of stainless steel, of a width of less than 600 mm: Not further worked than cold-rolled (cold-reduced): Of a width of less than 300 mm: Of a thickness not exceeding 0.25 mm: Other: Containing more than 0.5 percent but less than 24 percent by weight of nickel. 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.
When imported from China, this product 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.
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 7220.20.1010, 7220.20.7010 and 7220.20.9030, 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 7220.20.1010, 7220.20.7010 and 7220.20.9030, 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 7220.20.1010, 7220.20.7010 and 7220.20.9030, 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 Germany, Italy or Romania, will be subject to the 232 Trade Remedy. However, when these products 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