OT:RR:CTF:CPMMA H307939 AJK
Center Director
Center of Excellence and Expertise for Electronics
U.S. Customs and Border Protection
555 Battery Street
San Francisco, CA 94111
ATTN: Ms. Angela Guadamuz, Supervisory Import Specialist
RE: Internal Advice; Classification of Steel Bulb Flats
Dear Center Director:
This is in response to your request, dated October 2, 2019, on behalf of Thoma-Sea Marine Constructors, LLC (Thoma-Sea), in which you requested Internal Advice, concerning the tariff classification of steel bulb flats under Harmonized Tariff Schedule of the United States (HTSUS). This request was precipitated by Thoma-Sea’s request for a binding ruling on April 3, 2019. The U.S. Customs and Border Protection’s (CBP) National Commodity Specialist Division (NCSD), however, returned the request due to insufficient information on April 24, 2019. Thereafter, Thoma-Sea filed a supplemental request on July 25, 2019. On August 14, 2019, the NCSD issued a “Will Not Rule Letter,” as the items under consideration were part of a current matter with CBP. In response, Thoma-Sea filed a request for Internal Advice pursuant to 19 C.F.R. § 177.11(a).
FACTS:
The steel bulb flats are described in Thoma-Sea’s ruling request, dated April 3, 2019, as follows:
This ruling request involves steel bulb flats imported from Turkey. Bulb flats are a specially shaped steel for use as hull stiffeners in ships….
Bulb flats have a unique profile form. Bulb flats are hot-rolled flats with a bulb offset to one side that runs the entire length of the profile.…
Bulb flats are manufactured in a wide range of sizes to allow for optimum structures and weight management in ship design and construction. Bulbs are sized in millimeters (mm) by web (flat) depth and thickness. In this ruling request, we request a ruling on three sizes of bulb flats:
1. 100 mm (wide) x 6 mm (high) bulb flats;
2. 180 mm x 8 mm bulb flats; and
3. 320 mm x 12 mm bulb flats
All three bulb flat sizes are in 12 meter lengths.
In addition, Thoma-Sea’s Mill Test Certificate, which was submitted as its supporting document, shows that the bulb flats consist of 0.13-0.15% carbon and 0.06-0.08% chromium and states that the bulb flats are DNVGL-SHIP (i.e., Det Norske Veritas Germanischer Lloyd Rules for Classification-Ship), Grade VL A36. “VL” designates a steel grade that, pursuant to DNV GL rules, must be made at a DNV GL-approved facility. The Certificate does not identify any presence of boron.
ISSUE:
Whether the steel bulb flats are classified in heading 7216, HTSUS, as shapes of nonalloy steel.
LAW AND ANALYSIS:
The classification of goods under the 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 of the tariff schedule 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 GRIs 2 through 6 may then be applied in order. In this case, the HTSUS headings under consideration are as follows:
7216 Angles, shapes and sections of iron or nonalloy steel
7216.50.00 Other angles, shapes and sections, not further worked than hot-
rolled, hot-drawn or extruded
Note 1 to chapter 72 provides, in pertinent part:
In this chapter and, in the case of note[] … (f) below throughout the tariff schedule, the following expressions have the meanings hereby assigned to them:
…
(f) Other alloy steel
Steels not complying with the definition of stainless steel and containing by weight one or more of the following elements in the proportion shown:
- 0.3 percent or more of aluminum
- 0.0008 percent or more of boron
- 0.3 percent or more of chromium
- 0.3 percent or more of cobalt
- 0.4 percent or more of copper
- 0.4 percent or more of lead
- 1.65 percent or more of manganese
- 0.08 percent or more of molybdenum
- 0.3 percent or more of nickel
- 0.06 percent or more of niobium
- 0.6 percent or more of silicon.
- 0.05 percent or more of titanium
- 0.3 percent or more of tungsten (wolfram)
- 0.1 percent or more of vanadium
- 0.05 percent or more of zirconium
- 0.1 percent or more of other elements (except sulfur, phosphorus, carbon and nitrogen), taken separately.
…
(n) Angles, shapes and sections
Products having a uniform solid cross section along their whole length which do not conform to any of the definitions at (ij), (k), (l) or (m) above or to the definition of wire.
Chapter 72 does not include products of heading 7301 or 7302.…
Additional U.S. note 2 to chapter 72 provides, in pertinent part:
For the purposes of this chapter, unless the context provides otherwise, the term “further worked” refers to products subjected to any of the following surface treatments: polishing and burnishing; artificial oxidation; chemical surface treatments such as phosphatizing, oxalating and borating; coating with metal; coating with nonmetallic substances (e.g., enameling, varnishing, lacquering, painting, coating with plastics materials); or cladding.
* * * *
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System (HS) at the international level. While not legally binding, the ENs provide a commentary on the scope of each heading of the HS and are thus useful in ascertaining the proper classification of merchandise. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
EN 72.16 provides, in pertinent part, as follows:
The sections most commonly falling in this heading are H, I, T, capital omega, Z and U (including channels), obtuse, acute and right (L) angles. The corners may be square or rounded, the limbs equal or unequal, and the edges may or may not be “bulbed” (bulb angles or shipbuilding beams).
Angles, shapes and sections are usually produced by hot-rolling, hot-drawing, hot-extrusion or hot-forging or forging blooms or billets.
…
The heavier angles, shapes and sections (e.g., girders, beams, pillars and joists) are used in the construction of bridges, buildings, ships, etc.; lighter products are used in the manufacture of agricultural implements, machinery, automobiles, fences, furniture, sliding door or curtain tracks, umbrella ribs and numerous other articles.
* * * *
In Thoma-Sea’s ruling request, they argue that the subject steel bulb flats are properly classified in heading 7216, HTSUS, as shapes of nonalloy steel. After examining Thoma-Sea’s submission and supporting documentation, we agree. The subject merchandise does not meet the specifications for other alloy steel products as prescribed in note 1(f) to chapter 72 and the definition of shapes as stated in note 1(n) to chapter 72. First, we note that Thoma-Sea’s Mill Test Certificate indicates that the subject steel bulb flats have less than the minimum required percentages of aluminum, chromium, copper, manganese, molybdenum, nickel, niobium, silicon, titanium, and vanadium. Based on the steel composition described in the Mill Test Certificate, the subject merchandise constitutes “nonalloy steel” within chapter 72. Second, in accordance with the definition of “angles, shapes and sections” in note 1(n) to chapter 72, we find that the merchandise is classifiable therein because the steel bulb flats have uniform cross sections along their whole length and do not fall within any other definitions or exclusions for other steel products. Moreover, as EN 72.16 provides that heading 7216, HTSUS, includes bulb angles, we find that the subject merchandise is properly classified in heading 7216, HTSUS, under GRI 1. We also note that the subject merchandise is not “further worked”. Although the steel bulb flats are hot-rolled, killed (i.e., deoxidized), and fine grain treated, such treatments do not involve the specific surface treatments that are listed in the additional U.S. note 2 to chapter 72. By application of GRI 6, therefore, the steel bulb flats, which are hot-rolled and not further worked, are specifically classified in subheading 7216.50.00, HTSUS, which provides for “[o]ther angles, shapes and sections, not further worked than hot-rolled, hot-drawn or extruded”. The classification of the subject merchandise in subheading 7216.50.00, HTSUS, is consistent with prior CBP rulings classifying similar merchandise therein. See e.g., HQ 950067, dated Nov. 21, 1991; NY N304508, dated June 11, 2019; NY N304509, dated June 11, 2019.
HOLDING:
By application of GRIs 1 and 6, the steel bulb flats are classified in heading 7216, HTSUS, specifically under subheading 7216.50.00, HTSUS, which provides for: “Angles, shapes and sections of iron or nonalloy steel: Other angles, shapes and sections, not further worked than hot-rolled, hot-drawn or extruded”. The 2022 column one, general rate of duty is free.
On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a number of steel and aluminum mill products.? Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.01 for aluminum. Products classified under subheading 7216.50.00, HTSUS, may be subject to additional duties or quota. ?At the time of importation, the Protestant must report the chapter 99 subheading applicable to the product classification in addition to the chapter 72, 73 or 76 subheading listed above. ?The Proclamations are subject to periodic amendment of the exclusions, so the Protestant should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable chapter 99 subheadings.
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 at www.usitc.gov.
Sixty days from the date of the decision, 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 at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Allyson Mattanah for
Yuliya A. Gulis, Acting Director
Commercial and Trade Facilitation Division