CLA-2-73:OT:RR:NC:N5:121
Minda Statkus MS Trade Consulting 536 Forest Bluffs Rd Aiken, SC 29803 RE: The tariff classification and eligibility of 9802.00.6000 of certain wood and self-tapping screws manufactured from raw materials in the United States and returned to the U.S. for further processing Dear Ms. Statkus: In your letter dated February 26, 2025, you requested a tariff classification ruling on behalf of your client, OMG Building Products LLC (OMG). In particular, you are seeking a determination as to whether certain wood and self-tapping screws manufactured in the U.S. qualify for a reduction in duty under subheading 9802.00.6000, Harmonized Tariff Schedule of the United States (HTSUS). The products to be imported are iron or steel wood screws and self-tapping screws that are produced in the U.S. at the OMG Building Products LLC manufacturing facility, in Agawam, MA. OMG uses raw material wire coil and then cuts the wire to length, forms the head and drive system recess, pinches the point, and rolls the thread. The fasteners are then exported to Canada where they are hardened and tempered in electric heat-treating furnaces to improve their hardness and strength. The fasteners are then returned to the U.S. where they undergo the further process of electroplating to enhance their corrosion resistance and improve surface properties. Finally, the fasteners are packaged into a finished good to be sold to customers. You state the fasteners are imported under subheading 7318.12, HTSUS, which provides for Other wood screws, with a rate of duty of 12.5% or under subheading 7318.14, HTSUS, which provides for Self-tapping screws with a rate of duty of 6.2% for those having shanks or threads with a diameter of less than 6 mm, and 8.6% for those with a diameter of 6 mm or more. You note that both these products currently meet the USMCA free trade agreement. You have requested a determination on the eligibility of subheading 9802.00.6000, HTSUS, which provides a partial duty exemption for: [a]ny article of metal . . . manufactured in the United States or subject to a process of manufacture in the United States, if exported for further processing, and if the exported article as processed
outside the United States, or the article which results from the processing outside the United States, is returned for the United States for further processing. Subheading 9802.00.6000, HTSUS, therefore imposes four requirements: (1) the merchandise must be an article of metal; (2) the metal must either be manufactured in the United States or subject to a process of manufacture in the United States; (3) the metal must be exported for further processing; and (4) the metal must be returned to the United States for further processing. For purposes of subheading 9802.00.6000, HTSUS, “metal” includes “base metals enumerated in note 3 to section XV,” which in turn includes iron or steel. Therefore, the wood screws and self-tapping screws will qualify as an “article of metal” satisfying the first requirement. The wood and self-tapping screws are manufactured by OMG Building Products LLC, in Agawam, MA from wire coil. Manufacturing steps include cutting the wire to length, forming the head and drive system recess, pinching the point, and rolling the thread. These processing steps satisfy the second requirement that the metal must either be manufactured in the U.S. or subject to a process of manufacture in the U.S. The wood and self-tapping screws are then exported to Canada where they are hardened and tempered in electric heat-treating furnaces to improve their hardness and strength. This processing constitutes “further processed” under this tariff provision, satisfying the third requirement. The wood and self-tapping screws are then returned to the U.S. where they undergo the further process of electroplating to enhance their corrosion resistance and improve surface properties. Finally, the wood and self-tapping screws are packaged into a finished good to be sold to customers. The processing involved with electroplating of the screws constitutes “further processed” in the U.S., satisfying the fourth requirement. Accordingly, the subject merchandise may be entered under subheading 9802.00.6000, HTSUS, with duty only upon the value of the foreign processing contingent upon compliance with applicable regulations. 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. 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/. 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