CLA-2-73:OT:RR:NC:N1:130
Mr./Ms. Zora Lin
Megachem Advance Research Materials Co., Ltd.
10F.-1, No. 31, Fuxing 5th St., Zhubei City,
Hsinchu County, 302042
Taiwan
RE: The tariff classification and country of origin of steel compressed gas containers
Dear Mr./Ms. Lin:
In your letter, dated April 25, 2023, you requested a binding ruling for the tariff classification and country of origin of steel compressed gas containers. The request was returned to you for additional information, which was received by this office on May 19, 2023. Product information was submitted for our review.
The product under consideration is a seamless steel container, or tank, for compressed gas. You identify the container by the term “Water volume 10L-49L”. The container is refillable and is fitted with a valve. The container is marked “DOT-3AA” in accordance with Title 49, Code of Federal Regulations, Section 178.37 (49 CFR 178.37). You indicate that the container is manufactured in accordance with the safety requirements of 49 CFR 178.36 through 178.68, however, you do not indicate whether it is certified prior to exportation to have been made in accordance with these requirements. The containers are not overwrapped.
The applicable subheading for the steel compressed gas containers that are certified prior to export to be manufactured in accordance with the safety requirements of 49 CFR 178.36 through 178.68 will be 7311.00.0030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Containers for compressed or liquefied gas, of iron or steel: Certified prior to exportation to have been made in accordance with the safety requirements of sections 178.36 through 178.68 of title 49 CFR or under a specific exemption to those requirements: Seamless steel containers not overwrapped, marked DOT 3A, 3AX, 3AA, 3AAX, 3B, 3E, 3HT, 3T or DOT-E followed by a specific exemption number. The rate of duty will be free.
The applicable subheading for the steel compressed gas containers that are not certified prior to exportation to be manufactured in accordance with the safety requirements of 49 CFR 178.36 through 178.68 will be 7311.00.0090, which provides for Containers for compressed or liquefied gas, of iron or steel: Other. The rate of duty will be free.
In your request, you describe a scenario wherein the body of the steel container, or cylinder, is manufactured in China, the valve is manufactured in China, and the cylinder is polished internally, assembled with the valve, and tested in Taiwan.
Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. Further work or material a to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908). We must therefore determine if or where a substantial transformation of materials occurs in order to determine country of origin.
The article is a steel container for compressed gas. The component that gives the container its basic identity is the cylinder that is manufactured in China. The assembly of the valve and cylinder does not substantially transform the cylinder into a new and different article. Furthermore, the polishing and testing do not substantially transform the cylinder. Therefore, the country of origin of the complete containers imported into the US will be China.
The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD) for high pressure steel cylinders from China (A570-977, C570-979). 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 (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA’s “Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request” is available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7311.00.0030 and 7311.00.0090, 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 7311.00.0030 and 7311.00.0090, 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, including information on exclusions and their effective dates, 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.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division