CLA-2 CO:R:C:G 086997 CMS
7214.60.00
7215.90.50
Ms. Christina A. Cunha
Administrative and Financial Manager
Corporate Secretary-Treasurer
Tupy American Foundry Corp.
P.O. Box 4245
Lancaster, PA 17604
RE: Reconsideration Of Ruling No. 840176; Continuous Cast
Iron Product Of Solid Section; Semifinished; Finished;
Bars And Rods
Dear Ms. Cunha,
This is in response to your request dated April 16, 1990,
for the reconsideration of Ruling No. 840176 (May 22, 1989,
Philadelphia, PA), concerning the classification of a continuous
cast grey iron product. Our ruling follows.
FACTS:
The merchandise consists of a continuous cast grey iron
product in the shape of bars. The product is of solid section
and contains .25% or more of carbon by weight.
Ruling No. 840176 held that the product was classified in
7214.60.00, HTSUSA, as other bars and rods of iron, not further
worked than forged, hot-rolled, hot-drawn or hot-extruded.
ISSUE:
Is the merchandise classified in Heading 7207 as
semifinished products of iron, in Heading 7214 as other bars and
rods of iron not further worked than forged, hot-rolled, hot-
drawn or hot-extruded, or in Heading 7215 as other bars and rods
of iron?
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LAW AND ANALYSIS:
Heading 7207 provides for "[s]emifinished products of iron
or nonalloy steel". The term "semifinished products" is
specifically defined by Chapter 72 Note 1, which provides in
pertinent part:
In this chapter...the following expressions have the
meanings hereby assigned to them:
* * *
(ij) Semifinished products
Continuous cast products of solid section, whether
or not subjected to primary hot-rolling;
The Explanatory Notes to Heading 7207, p. 991, provide in
pertinent part:
Semi-finished products are defined in Note 1(ij) to this
Chapter.
* * *
The heading covers...all products obtained by continuous
casting.
HQ Ruling 077777 (January 23, 1987) held that a certain
continuous cast ductile iron product was classified under the
TSUS as a finished steel bar because it did not require further
hot working to reduce its dimensions. Several authorities within
the steel industry today believe that continuous cast iron
products are finished products because they normally do not
undergo secondary hot working operations before being machined.
Notwithstanding past TSUS decisions or other support for
describing the continuous cast iron product as a "finished"
product, the merchandise under consideration must be classified
under the HTSUSA pursuant to the General Rules of Interpretation.
GRI 1 provides in pertinent part that for legal purposes
classification shall be determined according to the terms of the
headings and any relative section or chapter notes.
Heading 7207 provides for "[s]emifinished products of iron
or nonalloy steel". Chapter 72 Note 1(ij) specifically provides
that continuous cast products of solid section are considered to
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be "[s]emifinished products" for classification purposes. The
Explanatory Notes to Heading 7207, p. 993, provide that Heading
7207 is intended to cover "...all products obtained by continuous
casting". Under the current language of the applicable headings
and the relative section and chapter notes, the iron product
under consideration is classified as a "semifinished" product.
The continuous cast iron product is not classified in
Heading 7214 as held in Ruling No. 840176 (May 22, 1989,
Philadelphia, PA). Ruling 840176 found that Chapter 72 Note 3
was instructive on the basis that the product was obtained by
"electrolytic deposition, by pressure casting or by sintering".
The product is clearly not obtained by electrolytic deposition or
sintering. The continuous cast product is also not obtained by
pressure casting. The General Explanatory Notes to Chapter 72,
p. 980 provide that casting under pressure (or "die casting")
consists of "...injecting an alloy...into a mould under a more or
less high pressure". The continuous cast method under
consideration does not involve the injecting of an alloy under
high pressure. Instead, the steel is passed through a
distributor by the force of gravity. This method, described by
the Explanatory Notes to Heading 7207, p. 992, may be described
as "gravity casting".
The continuous cast iron product under consideration is
classified as a semifinished product of iron, containing by
weight 0.25% or more of carbon, in 7207.20.00, HTSUSA.
Questions regarding the VRA coverage of this product should
be directed to Ms. Holly Kuga, Director, Office Of Agreements
Compliance, International Trade Administration, Department Of
Commerce, Room 7866, 14th and Constitution, N.W., Washington,
D.C., 20230, Tel. No. (202) 377-3793.
HOLDING:
Ruling No. 840176 (May 22, 1989, Philadelphia, PA) is
revoked pursuant to CR Sec. 177.9. The continuous cast iron
product is classified as a semifinished product of iron or steel,
containing by weight 0.25% or more of carbon, in 7207.20.00,
HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division