OT:RR:NC:N5:117
Lisa Chen
Millennia Stainless Inc.
10016 Romandel Ave. Santa Fe Springs, CA 90670
RE: The country of origin of stainless steel sheet
Dear Ms. Chen:
In your letter dated July 27, 2023, you requested a country of origin ruling.
The product to be imported is polished and coated Grade 304 or 430 stainless steel sheet. This cold-rolled, cut-to-length sheet ranges in thickness from 0.018” (0.45 mm) to 0.135” (3.42 mm) and has a width up to 60” (1524 mm). The nickel content ranges from .21% to 8.02%. The sheets are made to ASTM A240/480 and will be used in the production of end use products such as appliances or outdoor grills.
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.”
The applicable subheading for the polished and coated stainless steel sheet containing more than 0.5 percent by weight of nickel will be 7219.90.0025, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Flat-rolled products of stainless steel, of a width of 600 mm or more: Other: Other: Containing more than 0.5 percent by weight of nickel: Other. The rate of duty will be free.
The applicable subheading for the polished and coated stainless steel sheet containing 0.5 percent or less by weight of nickel will be 7219.90.0080, HTSUS, which provides for Flat-rolled products of stainless steel, of a width of 600 mm or more: Other: Other: Other: Other. The rate of duty will be free.
In your country of origin request you describe a scenario wherein stainless steel is melted and poured in Indonesia and manufactured into slabs. The product is shipped to China for further processing. In China, the stainless steel is hot-rolled, cold-rolled, pickled, annealed to a 2B mill finish and coiled. Next, the coil is polished, slit into sheets and a polyvinyl chloride (PVC) coating is applied to one side and an anti-fingerprint coating is applied to the opposite side. Finally, the sheets are cut-to-length and then packaged for export.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. §1304. Pursuant to 19 CFR 134.1(b), “country of origin” means the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added 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 this part. As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a “substantial transformation,” that is, processing which results in a change in the article's name, character, or use.”
Based on the facts presented, it is the opinion of this office that the manufacturing operations performed in China, as outlined above, result in a substantial transformation. Accordingly, the country of origin of the stainless steel sheet will be China.
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 9903.85.03 for aluminum. Products classified under subheadings 7219.90.0025 and 7219.90.0080, 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.
The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 subheadings.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7219.90.0025 and 7219.90.0080, 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 7219.90.0025 and 7219.90.0080, HTSUS, listed above.
Please be advised that the stainless steel sheet may be subject to antidumping duties and/or countervailing duties. 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Denise Hopkins at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division