CLA-2-72:RR:NC:1:117 F86837

Mr. Mark Robinson
Induction Iron, Inc.
13909 North Dale Mabry Highway, Suite 203B
Tampa, FL 33618

RE: The tariff classification of steel scrap billets from Germany and Brazil.

Dear Mr. Robinson:

In your letter dated April 20, 2000, you requested a tariff classification ruling. Photos of the products to be imported were submitted with your request.

The products to be imported are described as Grade 1001 HP steel scrap billets for remelting purposes. Typical dimensions for these billets are 65 mm x 65 mm x 6000-8000 mm and 100 mm x 100 mm x 8000-10,000 mm. You state that Grade 1001 is the softest possible steel made and that billets of this grade of steel have cracks and pits and would not be usable as normal semifinished steel billets. After importation these billets are cut into small square shapes and are shipped to customers where they are cut into finished sizes for re-melt furnaces.

You suggest that these billets are classifiable under HTS subheading 7204.50.00, HTS, which provides for remelting scrap ingots of iron or steel. Remelting scrap ingots of iron or steel are defined in Chapter 72 Note 1. (g), HTS, as “Products roughly cast in the form of ingots without feeder-heads or hot tops, or of pigs, having obvious surface faults and not complying with the chemical composition of pig iron, spiegeleisen or ferroalloys.” These billets do not conform to this definition for remelting scrap ingots. Waste and scrap is defined in Section XV Note 8. (a), HTS, as “Metal waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons.” Based upon the information you provided, these billets appear to be “definitely not usable as such”.

The applicable subheading for the nonalloy steel remelt scrap billets will be 7204.49.00, Harmonized Tariff Schedule of the United States (HTS), which provides for ferrous waste and scrap; remelting scrap ingots of iron or steel, other waste and scrap, other. The rate of duty will be free.

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 Paula Ilardi at 212-637-7016.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division