CLA-2 OT:RR:CTF:EMAIN H304190 ALS
Ms. Africa R. Bell, Director
Base Metals Center of Excellence and Expertise
U.S. Customs and Border Protection
610 S. Canal St. 3rd Floor Chicago, Illinois 60607
ATTN.: Mr. Daniel Pauls, Import Specialist
RE: Internal Advice; Tariff Classification of a Steel Tube
Dear Ms. Bell:
This letter is in reply to your request for internal advice that your office submitted on behalf of Mowry & Grimson, PLLC, representing NOVA Steel, Inc. The internal advice request concerns the Harmonized Tariff Schedule of the United States [HTSUS] classification of a steel tube. Our decision is set forth below.
FACTS:
The steel tube at issue consists of, upon importation, a square hollow cylinder with rounded edges. The specifications and dimensions of the tube are determined according to the specific needs of a customer. After importation, various other items are attached to the tube, such as a flat foot pad, a combination screw and nut, and a gear mechanism, to comprise the landing gear. Though the dimensions of the tube are customized, the tube’s outside dimension is not to exceed 15 thousandths of an inch, the inside dimension must be less than 15 thousandths of an inch, the wall thickness must not vary more than 5 thousandths of an inch, the radius range must be within 0.465” to 0.98/1.06”, the weld flash must be within 0.020” to 0.093”, the carbon equivalent must be 0.3 carbon max, and the tube “require[s] 0.040” to 0.120” clearance between the lower and upper leg because the lower legs must telescope with the upper legs.” The “actual wall thickness” of the subject steel tube is “.150/.160” inches (3.81mm/4.064mm).
ISSUE:
Is the NOVA Steel tube, as described above, properly classified under heading 7306, HTSUS, which provides for “Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel”, or under heading 8431, HTSUS, which provides for “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430”?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods 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, GRIs 2 through 6 may be applied in order.
The following headings and subheadings of the HTSUS are under consideration in this case:
7306 Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel:
7306.69 Other, welded, of noncircular cross section:
Having a wall thickness of 4 mm or more:
7306.69.10 Of iron or nonalloy steel...
* * *
Having a wall thickness of less than 4 mm:
7306.69.50 Of iron or nonalloy steel…
* * *
8431 Parts suitable for use solely or principally with the machinery of headings 8425 to 8430:
8431.10.00 Of machinery of heading 8425…
* * * * *
The Explanatory Notes to the Harmonized Commodity Description and Coding System (Explanatory Notes or ENs), including the Subheading Explanatory Notes, although not dispositive or legally binding, provide a commentary on the scope of each heading and certain subheadings of the HTSUS, and are generally indicative of the proper interpretation of such headings and subheadings. Customs believes the notes should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
NOVA contends that the steel tube is classifiable under heading 8431, HTSUS, because it claims the steel tube is a part of landing gears (which are classifiable under heading 8525, HTSUS), it is a part as defined under Note 2 to Section XVI, HTSUS, and it is not more specifically provided in the HTSUS.
The ENs to heading 8431 state the following:
This heading also excludes:
Casing, tubing and drill pipes (headings 7304 to 7306).
It is well-settled that goods are to be classified according to their condition as imported. See, e.g., Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 (Fed. Cir. 1994); see also CBP Ruling HQ H250531 (April 20, 2015). Upon importation, the steel tube is not attached to, installed on anything, or specifically designed in a fashion that might specify it as an article more specific than a steel tube. While the steel tube might be cut to specific lengths in accordance with a customer’s order, any specific length does not identify the steel tube as a more specifically identifiable article or as a part of another article.
NOVA cites to a number of CBP rulings to support its claim. In particular, NOVA cites CBP rulings NY N299105 (August 17, 2018) and NY N299103 (August 17, 2018). In each of the cases cited, CBP ruled that steel tubes cut to specific length are to be classified under heading 7306, HTSUS, finding that the steel tubes were “simply pipes that have not been made into a specific identifiable article.” Upon review, we find that the analysis and conclusions of N299105 and N299103 are applicable to the present case.
Given the foregoing, we conclude that the subject steel tube is properly classified under heading 7306, HTSUS. More specifically, it is properly classified under either subheading 7306.69.10, HTSUS, which provides for “Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: Other, welded, of noncircular cross section: Having a wall thickness of 4 mm or more: Of iron or nonalloy steel...” or subheading 7306.69.50, HTSUS, which provides for “Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: Other, welded, of noncircular cross section: Having a wall thickness of less than 4 mm: Of iron or nonalloy steel...”, depending on the wall thickness of the tube as imported.
HOLDING:
By application of GRI 1, the subject steel pipe is properly classified under heading 7306, HTSUS. Specifically, it is properly classified under subheading 7306.69.10, HTSUS, which provides for “Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: Other, welded, of noncircular cross section: Having a wall thickness of 4 mm or more: Of iron or nonalloy steel...” or subheading 7306.69.50, HTSUS, which provides for “Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: Other, welded, of noncircular cross section: Having a wall thickness of less than 4 mm: Of iron or nonalloy steel...”, depending on the wall thickness of the tube as imported. The general column one rate of duty, for merchandise classified in either subheading is Free.
Pursuant to U.S. Note 20(s) to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7306.69.10 or 7306.69.50, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, an importer must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 7306.69.10 or 7306.69.50, HTSUS, noted above, for products of China.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
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 the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Nataline Viray-Fung,
for Craig T. Clark, Director
Commercial and Trade Facilitation Division