CLA-2-72:OT:RR:NC:N5:117
Jacquelyn Votra
Trans-Border Global Freight Systems
2103 Route 9
Round Lake, New York 12151
RE: The tariff classification, country of origin for marking purposes, and country of origin for purposes
of Applicability of Section 232 of alloy steel plate
Dear Ms. Votra:
In your letter dated June 19, 2024, you requested a tariff classification and country of origin ruling for purposes of marking and for purposes of the applicability of a trade remedy on behalf of your client, Align Precision Philadelphia, LLC.
The product to be imported is identified as Invar 36 steel plate which will be used in the semiconductor industry as parts of machines that manufacture microchips. This hot-rolled alloy steel plate, which has been annealed and shot blasted, measures 4.56 (115.82 mm) in thickness, 11 (279.4 mm) in width, and 16 in length.
Flat-rolled products are defined in Chapter 72, Note 1(k) as Rolled products of solid rectangular (other than square) cross sectionin the form ofstraight 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 alloy steel plate will be 7226.91.5000, 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: Not further worked than hot-rolled: Other: Of a thickness of 4.75 mm or more. The rate of duty will be free.
In addition to classification, you have inquired as to the country of origin of the subject plate for purposes of marking and for purposes of applying trade remedies. 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; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.
A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993). 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.
According to your submission, hot-rolled, annealed, and shot blasted alloy steel plate of French origin produced from steel slab is sent to the United Kingdom (U.K.). The plates measures 4.56 (115.82 mm) in thickness, 44.48 in width and 129.13 in length. In the U.K., the chemistry of the plate is verified, the plate is pre-cut using a Waterjet cutting process, and the plate is cut to final dimensions. You indicate that after the processing takes place in the U.K., the plate measures 11 (279.4 mm) in width and 16 in length while the thickness remains the same (4.56 or 115.82 mm). The cut-to-length plate then is packed in wooden boxes and imported into the United States (U.S.).
Based on the facts presented, it is the opinion of this office that the imported steel plate did not undergo a substantial transformation in the U.K. The operations performed in the U.K. (i.e., checking the chemistry and cutting to final dimensions) did not change the name, character or use of the steel plate. The plate enters the U.K. from France as plate and leaves the U.K. as plate. As such, the country of origin for marking purposes of the Invar 36 alloy steel plate originating from steel slab produced in France and imported into the U.S. from the U.K. will be France.
For your information, when determining the country of origin for purposes of applying trade remedies under Section 301, Section 232 and Section 201, the substantial transformation analysis is applicable. As stated above, this office finds that the alloy steel plate does not undergo a substantial transformation in the U.K. Accordingly, we find that the country of origin for purposes of trade remedies to be France.
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 subheading 7226.91.5000, 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 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.
Please be advised that the alloy steel plate 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.
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 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 Denise Hopkins at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division