CLA-2-72:OT:RR:NC:N1:117
Donald S. Stein
Greenberg Traurig LLP
2101 L Street, N.W.
Suite 1000
Washington, DC 20037
RE: The tariff classification of alloy steel bars from China, Ukraine or Slovenia
Dear Mr. Stein:
In your letter dated May 16, 2022, on behalf of your client, SB Specialty Metals LLC, you requested a tariff classification ruling.
The products under consideration are precision ground alloy steel flat bars. Available in Grades A2, S7 and 01 tool steel and Grade 4140 alloy steel, these cut-to-length bars will ultimately be used in the manufacture of tools, dies and molds.
According to your submission, the tool steel bars will measure 2 inches (50.8 mm) in thickness whereas the alloy steel bars will have a thickness ranging from 0.0625 inch (1.58 mm) up to and including 2 inches (50.8 mm). You indicate that these bars will be imported in widths ranging from 0.50 inch to 12 inches (12.7 mm to 304.8 mm).
Flat-rolled products are defined in Chapter 72, Note 1(k) as “Rolled products of solid rectangular (other than square) cross section…in the form of…straight lengths, which if of a thickness less than 4.75 mm are of a width measuring at least 10 times the thickness or if of a thickness of 4.75 mm or more are of a width which exceeds 150 mm and measures at least twice the thickness.” Depending upon the exact measurement of each of the flat bars, some may meet the above definition of a flat-rolled product, while others will be classified as “Other bars,” as you have suggested.
The applicable subheading for those bars meeting the definition of flat-rolled products
will be 7226.99.0180, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Flat-rolled products of other alloy steel, of a width of less than 600 mm: Other: Other: Other. The rate of duty will be free.
The applicable subheading for the tool steel flat bars having a maximum cross-sectional dimension less than 18 mm will be 7228.50.1020, 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 cold-formed or cold-finished: Of tool steel (other than high-speed steel): Other: With a maximum cross-sectional dimension of less than 18 mm: Of round or rectangular cross-section with surfaces ground, milled or polished. The rate of duty will be free.
The applicable subheading for the tool steel flat bars having a maximum cross-sectional dimension 18 mm or more will be 7228.50.1060, 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 cold-formed or cold-finished: Of tool steel (other than high-speed steel): Other: With a maximum cross-sectional dimension of 18 mm or more: Of round or rectangular cross-section with surfaces ground, milled or polished. The rate of duty will be free.
The applicable subheading for the Grade 4140 alloy steel flat bars having a cross-section less than 76 mm will be 7228.50.5015, 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 cold-formed or cold-finished: Other: Other: With a diameter or cross-section measuring less than 76 mm. The rate of duty will be free.
The applicable subheading for the Grade 4140 alloy steel flat bars having a cross-section of 76 mm or more but not exceeding 228 mm will be 7228.50.5040, 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 cold-formed or cold-finished: Other: Other: With a diameter or cross-section measuring 76 mm or more but not exceeding 228 mm. The rate of duty will be free.
The applicable subheading for the Grade 4140 alloy steel flat bars having a cross-section exceeding 228 mm will be 7228.50.5070, 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 cold-formed or cold-finished: Other: Other: With a diameter or cross-section exceeding 228 mm. 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.
Grade 4140 alloy steel products, if imported from China, 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 7226.99.0180, 7228.50.1020, 7228.50.1060, 7228.50.5015, 7228.50.5040 and 7228.50.5070, 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 7226.99.0180, 7228.50.1020, 7228.50.1060, 7228.50.5015, 7228.50.5040 and 7228.50.5070, 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 7226.99.0180, 7228.50.1020, 7228.50.1060, 7228.50.5015, 7228.50.5040 and 7228.50.5070, 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 April Cutuli at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division