CLA-2 R:C:M 957492 DWS

7212.40.10; 7217.11.20; 7217.19.50

Mr. Robert Garcia
R.W. Smith & Co., Inc.
P.O. Box 60587 AMF
Houston, TX 77205-0587

RE: Reconsideration of DD 897178; Ribbon Wound and Oscillated Wound Nonalloy Steel Strapping; Chapter 72, Notes 1(k) and (o); HQ 089538; NY 845896; The Making, Shaping and Treating of Steel; General Explanatory Note (IV)(C)(2)(d)(ii) to Chapter 72

Dear Mr. Garcia:

This is in reference to DD 897178, issued to you on May 17, 1994, on behalf of Burseryds Bruk AB, by the District Director of Customs, New Orleans, Louisiana, concerning the classification of steel strapping under the Harmonized Tariff Schedule of the United States (HTSUS). In reviewing DD 897178, we found that the holding therein was incomplete based upon the description of the merchandise you provided to Customs on April 19, 1994.

Pursuant to section 625(c)(1), Tariff Act of 1930 [19 U.S.C. 1625(c)(1)], as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993) (hereinafter section 625), notice of the proposed modification of DD 897178 was published May 3, 1995, in the Customs Bulletin, Volume 29, Number 18.

FACTS:

The merchandise consists of various types of steel strapping, which are cold-rolled and made of two grades of carbon or nonalloy steel. One grade contains by weight 0.06 percent to 0.11 percent of carbon, and the other grade contains by weight 0.11 percent to 0.18 percent of carbon. The strapping ranges in size from 19 mm x 0.50 mm to 32 mm x 1 mm. It is in either ribbon wound coils, which consist of successively superimposed layers, or oscillated wound coils, which consist of layers wound back and forth across a spool. The strapping is available in the following finishes: bright finished, waxed, blue annealed, black painted, green painted, zinc painted, and hot-dip galvanized. It is our understanding that bright finished products may be of high-strength steel. Zinc painted products are painted with an organic paint containing metallic zinc dust.

The subheadings under consideration are as follows:

7211.30.10: [f]lat-rolled products of iron or nonalloy steel, of a width of less than 600 mm, not clad, plated or coated: [n]ot further worked than cold-rolled (cold-reduced), of high-strength steel: [o]f a width of less than 300 mm: [o]f a thickness exceeding 0.25 mm.

The general, column one rate of duty for goods classifiable under this provision is 3.1 percent ad valorem.

7211.41.30: . . . : [o]ther, not further worked than cold- rolled (cold-reduced): [c]ontaining by weight less than 0.25 percent of carbon: [o]f a width of less than 300 mm: [o]f a thickness exceeding 0.25 mm but not exceeding 1.25 mm.

The general, column one rate of duty for goods classifiable under this provision is 3.1 percent ad valorem.

7211.90.00: . . . : [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 4.6 percent ad valorem.

7212.30.10: [f]lat-rolled products of iron or nonalloy steel, of a width of less than 600 mm, clad, plated or coated: [o]therwise plated or coated with zinc: [o]f a width of less than 300 mm: [o]f a thickness exceeding 0.25 mm or more.

The general, column one rate of duty for goods classifiable under this provision is 3.1 percent ad valorem.

7212.40.10: . . . : [p]ainted, varnished or coated with plastics: [o]f a width of less than 300 mm.

The general, column one rate of duty for goods classifiable under this provision is 3.1 percent ad valorem.

7217.11.20: [w]ire of iron or nonalloy steel: [c]ontaining by weight less than 0.25 percent of carbon: [n]ot plated or coated, whether or not polished: [f]lat wire: [o]f a thickness exceeding 0.25 mm But not exceeding 1.25 mm.

The general, column one rate of duty for goods classifiable under this provision is 2.9 percent ad valorem.

7217.19.50: . . . : [o]ther: [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 4.8 percent ad valorem.

ISSUE:

Whether the various types of steel strapping are classifiable under subheading 7211.30.10, HTSUS, as flat-rolled products of nonalloy steel, not further worked than cold-rolled, of high-strength steel, not coated, of a width less than 300 mm and a thickness exceeding 0.25 mm; under subheading 7211.41.30, HTSUS, as flat-rolled products of nonalloy steel, not further worked than cold-rolled, not coated, containing by weight less than 0.25 percent of carbon, of a width of less than 300 mm and a thickness exceeding 0.25 mm but not exceeding 1.25 mm; under subheading 7211.90.00, HTSUS, as other flat-rolled products of nonalloy steel, not further worked than cold-rolled, of a width of less than 600 mm, not coated; under subheading 7212.30.10, HTSUS, as flat-rolled products of nonalloy steel, coated, with zinc, of a width of less than 300 mm and a thickness exceeding 0.25 mm or more; under subheading 7212.40.10, as flat-rolled products of nonalloy steel, of a width of less than 300 mm, painted with plastics; under subheading 7217.11.20, HTSUS, as flat wire of nonalloy steel, containing by weight less than 0.25 percent of carbon, not coated, of a thickness exceeding 0.25 mm but not exceeding 1.25 mm; or under subheading 7217.19.50, HTSUS, as other wire of nonalloy steel, containing by weight less than 0.25 percent of carbon.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

In DD 897178, it was held that zinc painted steel strapping was classifiable under subheading 7212.30.10, HTSUS, and black painted steel strapping was classifiable under subheading 7212.40.10, HTSUS. It is now our understanding, based upon the original information you submitted, that DD 897178 was incomplete and incorrect with regard to the classification of the zinc painted steel strapping. Our classification analysis of all the merchandise follows.

BRIGHT FINISHED RIBBON WOUND STRAPPING

In part, Chapter 72, note 1(k), HTSUS, states:

1. In this chapter and, in the case of notes (d), (e) and (f) below throughout the tariff schedule, the following expressions have the meanings hereby assigned to them:

(a) - (ij) xxx

(k) Flat-rolled products

Rolled products of solid rectangular (other than square) cross section, which do not conform to the definition at (ij) above in the form of:

- coils of successively superimposed layers, . . .

Chapter 72, Additional U.S. Note 1(a), HTSUS, states:

1. For the purposes of the tariff schedule the following expressions have the meanings hereby assigned to them:

(a) High-strength steel

Flat-rolled products of a thickness of less than 3 mm and having a minimum yield point of 275 Mpa or of a thickness of 3 mm or more and having a minimum Yield point of 355 Mpa.

A bright finish on the steel is created at the end of the of the cold reduction process, when an unpolished finish is applied to the steel through cold-rolling, annealing, and descaling. The application of the bright finish does not affect the classification of the steel strapping. See HQ 089538, dated August 7, 1991.

The bright finished ribbon wound steel strapping meets the above definition of flat-rolled products in that it is of solid rectangular cross section and is in the form of coils of successively superimposed layers. Therefore, the steel strapping is classifiable under either subheading 7211.30.10, HTSUS, or subheading 7211.41.30, HTSUS, depending upon whether it is of high-strength steel.

BLACK PAINTED, GREEN PAINTED, AND ZINC PAINTED RIBBON WOUND STEEL STRAPPING

With regard to the zinc painted steel strapping, it is our position that the zinc paint does not constitute a metal coating. The Making, Shaping and Treating of Steel (10th Edition), delineates between metallic protective coatings and organic coatings. Metallic protective coatings are applied to steel by the following methods: hot-dip process, metal spraying, metal cementation, metal cladding, fusion welding of coatings, electroplating, cathode sputtering, and evaporation of condensation. Whereas, organic coatings are commonly known as paints, varnishes, enamels, and lacquers. Paints are described as mixtures of pigments with drying oils, with varnish vehicles or with synthetic resins or polymers. Because the subject zinc paint consists of organic paint containing metallic zinc dust, it is a paint rather than a metal coating.

Consequently, the black painted, green painted, and zinc painted ribbon wound steel strapping is classifiable under subheading 7212.40.10, HTSUS.

ZINC HOT-DIP GALVANIZED RIBBON WOUND STEEL STRAPPING

As stated above, a zinc hot-dip galvanized coating is a metallic coating. Therefore, the zinc hot-dip galvanized ribbon wound steel strapping is classifiable under subheading 7212.30.10, HTSUS.

BLUE-ANNEALED RIBBON WOUND STEEL STRAPPING

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, General Explanatory Note (IV)(C)(2)(d)(ii) to chapter 72, HTSUS (pp. 981 - 982), states:

(IV) Production of finished products

(A) - (B) xxx

(C) Subsequent manufacture and finishing

The finished products may be subjected to further finishing treatments or converted into other articles by a series of operations such as:

(1) xxx

(2) Surface treatments or other operations, including cladding, to improve the properties or appearance of the metal, protect it against rusting and corrosion, etc. Except as otherwise provided in the text of certain headings, such treatments do not affect the heading in which the goods are classified. They include:

(d) Surface finishing treatment, including:

(i) xxx

(ii) . . . blueing (blue annealing) . . .

Because the process of blue-annealing the steel strapping is considered a surface finishing treatment, because the steel strapping is "further worked", the blue-annealed ribbon wound steel strapping is classifiable under subheading 7211.90.00, HTSUS. See NY 845896, dated October 27, 1989.

BLUE-ANNEALED OSCILLATED WOUND STEEL STRAPPING

Chapter 72, note 1(o), HTSUS, states:

1. In this chapter and, in the case of notes (d), (e) and (f) below throughout the tariff schedule, the following expressions have the meanings hereby assigned to them:

(a) - (n) xxx

(o) Wire

Cold-formed products in coils, of any uniform solid cross section along their whole length, which do not conform to the definition of flat-rolled products.

It is our position that oscillated wound steel strapping is, for classification purposes, described as wire as it does not meet the definition of flat-rolled products under chapter 72, note 1(k), HTSUS. It consists of layers of material wound back and forth across a spool, as opposed to being wound in successively superimposed layers.

Therefore, because the blue-annealed oscillated wound steel strapping is not coated, it is classifiable under subheading 7217.11.20, HTSUS.

BLACK PAINTED, GREEN PAINTED, AND ZINC PAINTED OSCILLATED WOUND STEEL STRAPPING

Because they are coated products, the black painted, green painted, and zinc painted oscillated wound steel strapping is classifiable under subheading 7217.19.50, HTSUS.

HOLDING:

The bright finished ribbon wound steel strapping, of high-strength steel, is classifiable under subheading 7211.30.10, HTSUS, as flat-rolled products of nonalloy steel, not further worked than cold-rolled, of high-strength steel, not coated, of a width less than 300 mm and a thickness exceeding 0.25 mm.

The bright finished ribbon wound steel strapping, not of high-strength steel, is classifiable under subheading 7211.41.30, HTSUS, as flat-rolled products of nonalloy steel, not further worked than cold-rolled, not coated, containing by weight less than 0.25 percent of carbon, of a width of less than 300 mm and a thickness exceeding 0.25 mm but not exceeding 1.25 mm.

The black painted, green painted, and zinc painted ribbon wound steel strapping is classifiable under subheading 7212.40.10, as flat-rolled products of nonalloy steel, of a width of less than 300 mm, painted with plastics.

The zinc hot-dip galvanized ribbon wound steel strapping is classifiable under subheading 7212.30.10, HTSUS, as flat-rolled products of nonalloy steel, coated with zinc, of a width of less than 300 mm and a thickness exceeding 0.25 mm or more.

The blue-annealed ribbon wound steel strapping is classifiable under subheading 7211.90.00, HTSUS, as other flat-rolled products of nonalloy steel, not further worked than cold-rolled, of a width of less than 600 mm, not coated.

The blue-annealed oscillated wound steel strapping is classifiable under subheading 7217.11.20, HTSUS, as flat wire of nonalloy steel, containing by weight less than 0.25 percent of carbon, not coated, of a thickness exceeding 0.25 mm but not exceeding 1.25 mm.

The black painted, green painted, and zinc painted oscillated steel strapping is classifiable under subheading 7217.19.50, HTSUS, as other wire of nonalloy steel, containing by weight less than 0.25 percent of carbon.

DD 897178, dated May 17, 1994, is modified to reflect the reasoning in this ruling. In accordance with section 625(c)(1), this ruling will become effective 60 days after its publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625(c)(1) does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations [19 CFR 177.10(c)(1)].


Sincerely,

John Durant, Director
Commercial Rulings Division