CLA-2-73:OT:RR:NC:N5:121
Matthew Link
Valro Manufacturing Ltd.
3 The Grove, Parkgate Industrial Estate Knutsford WA16 8XP United Kingdom
RE: The tariff classification of stainless steel internally threaded fixtures from China
Dear Mr. Link:
In your letter dated January 18, 2024, you requested a tariff classification ruling. Product descriptions and drawings were provided for our review.
The products under consideration are described as steel fixtures, product names: CX-TN05 (aka the Austria variant) and CX-TN20 (aka the Norway variant). These articles are made of stainless steel and used in the construction of underground structures such as tunnels. Each article includes an upper disc and a lower boss that are joined together by a process such as mechanically crimping or welding so that a strong and watertight joint is created. The upper disc is press formed from stainless steel sheet. The top side is coated with heat-reactivatable or hot-melt adhesive. The bottom side may be plain or coated. The lower section is machined or formed from stainless steel into a round coupling nut with an M16 blind female threaded hole in both ends. You state that other thread sizes are possible. The two products are essentially the same, except for the outside of the nut section. The outside of the Austria variant has a coarse screw thread or texture and the outside of the Norway variant is smooth. The exterior texture of the Austria variant functions only to help epoxy resin to grip onto the fixture and hold it in place.
The fixtures function to connect to threaded steel rods within an underground structure to provide a means to attach and seal a waterproofing membrane. The Austria variant is bonded into the rock wall and the Norway variant is positioned away from the rock wall. The bottom end of the subject fixture is either threaded onto an existing threaded rod or held in place with epoxy. Waterproofing sheet is placed over the disc on the fixture and then held in place by activating the adhesive coating on the disc using a heating tool. A small hole is then cut into the waterproofing membrane and a short threaded steel bar is inserted into the top threaded hole of the nut. Steel wire reinforcement mesh will be secured to that extension bar with another nut to hold the mesh a short distance away from the waterproofing membrane.
We considered your suggestion that these fixtures are more than a steel nut because their function to hold or connect to threaded steel rods is secondary to the main function of the fixture which is to hold plastic waterproof sheeting in place to provide a sealed connection. We disagree.
The term “nut” is not defined in the tariff, so we look to common and commercial meaning of the term. ANSI/ASME’s Glossary of Terms for Mechanical Fasteners (ASME B18.12-2012), subsection 3.2.1.1. defines a nut as: “a perforated block having an internal or female screw thread, designed to assemble with an external or male screw thread, such as those on a bolt or other threaded part. Its intended function is fastening, adjusting transmitting motion, or transmitting power with a large mechanical advantage and nonreversible motion.” Section 3.2.1 which regards Nuts as a whole, then goes on to list more than 40 types of nuts of varying sizes, dimensions, and features, which make the nut suitable for different and specific usages. Additionally, we note that the Explanatory Note to 73.18 Subsection (A) Screws, Bolts and Nuts states, in relevant part: “Nuts are metal pieces designed to hold the corresponding bolts in place. They are usually tapped throughout but are sometimes blind. The heading includes wing nuts, butterfly nuts, etc.”
Subheading 7318.16.00, Harmonized Tariff Schedule of the United States (HTSUS), is an eo nominee provision for nuts. Eo nomine provisions include all forms of the named article, unless specifically excluded. The subject fixtures do differ from a common nut because they include a metal disc on the top and in addition to functioning to hold corresponding threaded rod in place, they also function to hold waterproof sheeting. However, it is the opinion of this office that this additional feature does not transform the character of the article as a “nut”. Therefore, these fixtures will be classified as nuts.
The applicable subheading for the stainless steel fixtures, product names: CX-TN05 and CX-TN20 will be 7318.16.0060, HTSUS, which provides for Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: Threaded articles: Nuts: Other: Of stainless steel. 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 7318.16.0060, 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 subheading 7318.16.0060, 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.
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 at https://hts.usitc.gov/current.
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 Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division