Port Director, Port of Houston
U.S. Customs and Border Protection
2350 N. Sam Houston Parkway East, Suite 1000
Houston, TX 77032
Attn: Terry Estell, Service Port Director
RE: Internal Advice Request; Classification of carbon steel butt-weld pipe fittings
Dear Port Director:
This is in response to your letter, dated August 17, 2012, forwarding the Request for Internal Advice submitted on behalf of Allied Fittings, LLP (Allied), concerning the proper classification of carbon steel butt weld pipe fittings under the Harmonized Tariff Schedule of the United States (HTSUS). Product photographs, technical specifications and drawings were submitted for our review.
FACTS:
The subject merchandise is carbon steel butt-weld pipe fitting pieces of various dimensions and configurations. The pipe fittings have one end or opening with an inside diameter of less than 360 mm and one or more ends or openings with an inside diameter of 360 mm or greater. Some of the fittings are described as “tee” fittings which have three openings and form the shape of a “T,” others are cone-shaped.
In its request for internal advice, Allied argues that the butt-weld pipe fittings are properly classified under subheading 7307.93.90, HTSUS, which provides for, “Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: Other: Butt welding fittings: With an inside diameter of 360 mm or more: Of iron or non-alloy steel: Other.” The Service Port of Houston, citing New York Ruling Letter (NY) D87533, dated February 23, 1999, states that the merchandise is properly classified under subheading 7307.93.30, HTSUS, which provides for, “Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: Other: Butt welding fittings: With an inside diameter of less than 360 mm: Of iron or non-alloy steel.” Butt welding pipe fittings with an inside diameter of less than 360 mm are subject to antidumping case A-570-814.
ISSUE:
Whether butt-weld pipe fittings with one end or opening having an inside diameter of less than 360 mm and one or more other ends or openings with an inside diameter of 360 mm or more are classified under subheading 7307.93.30, HTSUS or subheading 7307.93.90, HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s may then be applied in order. The HTSUS provisions under consideration are as follows:
7307: Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel:
7307.93 Butt welding fittings:
7307.93.30 With an inside diameter of less than 360 mm:
7307.93.90 With an inside diameter of 360 mm or more:
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s provide 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. 35127-28 (August. 23, 1989).
Because the classification dispute of the subject merchandise occurs beyond the four-digit heading level, GRI 6 is implicated. GRI 6 states:
For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
In fact, CBP’s analysis begins at the 8-digit subheading level, as there is no dispute that the subject merchandise is a tube or pipe fitting, specifically a butt welding fitting, of carbon steel. The subheadings under consideration are equally specific, and equally refer to part of the subject merchandise; either the part of the pipe fitting that has an inside diameter of less than 360 mm or the part of the pipe fitting that has an inside with a diameter of 360 mm or more. As a result, classification cannot be reached using GRI 1.
GRI 2(a) refers to incomplete, unfinished, or unassembled merchandise and thus is not relevant here, as the subject merchandise is imported in its condition complete.
GRI 2(b) refers to mixtures or combinations of materials or substances and states that classification of goods consisting of more than one material or substance shall be according to the principals of Rule 3. The subject pipe fittings are neither mixtures nor composites of different materials or substances; they are only composed of carbon steel, and are designed and manufactured into various shapes or configurations. That one portion of the product is fully described by one subheading and the other portion of the product is fully described by another subheading, does not make this product a mixture of materials or substances, or a composite good. Thus, Rule 2(b) does not apply.
CBP next considers GRI 3, which states the following:
When, by application of rule 2(b) or for any other reason, goods are prima facie, classifiable under two or more [sub]headings, classification shall be effected as follows: [Emphasis added]
The [sub]heading which provides the most specific description shall be preferred to [sub]headings providing a more general description. However, when two or more [sub]headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those [sub]headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the [sub]heading which occurs last in numerical order among those which equally merit consideration.
Thus, we reach Rule 3 for reasons other than by application of Rule 2(b). Rule 3(b) operates only if Rule 3(a) fails in classification, and if both Rules 3(a) and (b) fail, Rule 3(c) will apply.
The subheadings at issue are equally specific and thus GRI 3(a) does not apply. As noted above, the subject butt-weld pipe fittings are composed entirely of carbon steel and are not mixtures, composite goods consisting of different materials, or composite goods consisting of different components. Thus, GRI 3(b) fails and CBP need not engage in an “essential character” analysis, because the condition precedent is not met.
Therefore, CBP turns to Rule 3(c) which states: when goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. In the instant matter, that subheading is 7307.93.90, HTSUS, which provides for Butt welding fittings: With an inside diameter of 360 mm or more.
With respect to the issue of whether the subject merchandise is subject to anti-dumping duties, on July 6, 1992, the U.S. Department of Commerce, International Trade Administration (ITA), Import Administration, (now Enforcement and Compliance) published Anti-Dumping Duty Order and Amendment to the Final Determination of Sales at Less Than Fair Value; Certain Carbon Steel Butt-Weld Pipe Fittings from the People’s Republic of China. A-570-814. See 57 FR 29702. We note that whether the merchandise at issue is subject to anti-dumping orders is beyond the administrative authority of CBP. CBP is not charged with the administrative authority to ascertain nor impose antidumping orders. Such authority is within the purview of the ITA, who is not necessarily bound by a country of origin or classification determination issued by CBP with regard to the scope of antidumping orders or countervailing duties. Written decisions regarding the scope of AD/CVD orders are issued by the ITA and are separate from tariff classification and origin rulings issued by CBP. You may contact ITA at 1-800 USA-TRAD(E). For further information, you can also view a list of current AD/CVD cases at the United States International Trade commission website at www.usitc.gov (click on “Antidumping and Countervailing Duty Investigations”), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at www.cbp.gov (Click on “Import” and “AD/CVD”).
HOLDING:
By application of GRI 6, and GRI 3(c), the subject carbon steel butt-weld pipe fittings from China are classified in subheading 7307.93.90, HTSUS, which provides for, “Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: Other: butt welding fittings: With an inside diameter of 360 mm or more: Other.” The applicable duty rate is 4.3% ad valorem.
You are to mail this decision to the Internal Advice requester no later than 60 days from the date of the decision. At that time, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel and to the public on CBP’s website, located at www.cbp.gov by means of the Freedom of Information Act and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division