OT:RR:CTF:CPMMA H336298 AJK
Center Director
Base Metals Center of Excellence and Expertise
U.S. Customs and Border Protection
7141 Office City Drive
Houston, TX 77087
Attn: Veronica C. Martinez, Import Specialist
RE: Application for Further Review of Protest No. 5301-19-100875; Classification of Steel
Seamless Line Pipes; Applicability of Section 232 Duties; Time of Entry
Dear Center Director:
This is in response to the Application for Further Review (AFR) of Protest No. 5301-
19100875, filed on May 22, 2019, on behalf of Finaswiss Trading UK LTD (Protestant),
concerning the U.S. Customs and Border Protection’s (CBP) application of the additional duties
on steel articles under Section 232 of the Trade Expansion Act of 1962, 19 U.S.C. § 1862,
(Section 232 duties).
FACTS:
The subject protest concerns the steel seamless line pipes in Entry No. XXX-XXXX6314,
which were classified under subheading 7304.19.1020, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA). The applicable rate of duty was zero at the time of entry.
According to the Automated Commercial Environment (ACE), the timeline of events is
as follows: An entry summary (CBP Form 7501) was filed to serve as both the entry and entry
summary, and was accepted on March 14, 2018; however, the Protestant resubmitted the entry
summary on March 16, 2018. The subject merchandise arrived at the Port of Houston Seaport on
March 17, 2018. On March 23, 2018, the Section 232 duties became effective. On March 27,
2018, the subject merchandise was released from CBP custody, and ACE identified this date as
the date of entry. On December 7, 2018, the subject entry was liquidated, and the Base Metals
Center of Excellence and Expertise (Center) accordingly assessed the Section 232 duties,
because ACE identified the date of release—March 27, 2018—as the date of entry.
Protestant timely filed this protest and AFR on May 22, 2019. In the protest and AFR,
Protestant alleges that the subject entry of steel seamless line pipes is not subject to the Section
232 duties, because the date of entry precedes the implementation date of the Section 232 duties.
Specifically, Protestant alleges that the date of entry is March 17, 2018, which is the date on
which the subject merchandise arrived at the Port of Houston Seaport after the entry summary
had been filed. The protest and AFR, however, were denied on July 7, 2023. In denying the
protest, the Center concluded that the Section 232 duties applied to the subject entry, because the
date of entry, as identified in ACE, occurred four days after the implementation date of the
Section 232 duties. Thereafter, Protestant filed the request to set aside the denial of the AFR on
August 22, 2023, which was granted by this office on September 28, 2023. Accordingly, the
Center granted the AFR and forwarded the AFR to our office for disposition. The classification
of the merchandise under subheading 7304.19.1020, HTSUSA, is not in dispute.
ISSUE:
Whether the subject steel seamless line pipes are subject to the Section 232 duties.
LAW AND ANALYSIS:
Initially, we note that the matter is protestable under 19 U.S.C. § 1514(a)(2), as a decision
on the rate and amount of duties chargeable on the subject merchandise. The protest was timely
filed within 180 days of liquidation. See 19 U.S.C. § 1514(c)(3). Further review of Protest No.
5301-19-100875 is properly accorded, pursuant to 19 C.F.R. § 174.24(b), because the decision
against which the protest was filed is alleged to involve a question of law or fact that has not
previously been ruled upon by CBP or the courts.
On March 8, 2018, the President issued Proclamation 9705 on Adjusting Imports of Steel
into the United States, which imposed the Section 232 duties on certain steel articles, effective
with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01
a.m. Eastern Daylight Time on March 23, 2018. See 83 Fed. Reg. 11625 (Mar. 15, 2018).
Accordingly, the applicability of the Section 232 duties hinges on whether the subject
merchandise was entered for consumption before or after March 23, 2018.
Section 141.68 of the CBP regulations, 19 C.F.R. § 141.68, provides for distinct dates of
entry that may be established in accordance with specific criteria. Specifically, section 141.68(b)
provides that the date of entry can be established by the importer’s filing of an entry summary,
which serves as both the entry and entry summary:
(b) When entry summary serves as entry and entry summary. When an entry summary
serves as both the entry documentation and entry summary, in accordance with § 142.3(b)
of this chapter, the time of entry will be the time the entry summary is filed in proper form
with estimated duties attached except as provided in § 142.13(b).
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However, no date of entry may predate the arrival of the merchandise as specified in
section 141.68(e), 19 C.F.R. § 141.68(e):
(e) When merchandise has not arrived. Merchandise will not be authorized for release,
nor will an entry or an entry summary which serves as both the entry and entry summary
be considered filed or presented, until the merchandise has arrived within the port limits
with the intent to unlade.
In its protest, Protestant contends that CBP’s assessment of the Section 232 duties was
improper, because the date of entry precedes the effective date of the Section 232 duties.
Protestant alleges that the correct date of entry is March 17, 2018, because it is the date on which
the subject merchandise arrived at the Port of Houston Seaport with intent to unlade, and
Protestant filed the entry summary, which served as both the entry and the entry summary, before
the arrival.
We agree. Although ACE identifies March 27, 2023, which is the date when the subject
merchandise was released from CBP custody, as the date of entry, this is not the applicable date
of entry as established by law. Pursuant to section 141.68 of the CBP regulations, once the
entered merchandise arrives within port limits with intent to unlade, and an entry summary,
which serves as both the entry and the entry summary, is timely filed, “the time of entry will be
the time the entry summary is filed in proper form with estimated duties attached.” 19 C.F.R. §§
141.68(b), (e). According to ACE, the entry summary was last filed on March 16, 2018, and the
subject merchandise arrived at the Port of Houston Seaport on March 17, 2018. Accordingly, the
proper date of entry for Entry No. XXX-XXXX631-4 is March 17, 2018, which predates the
effective date of the Section 232 duties. Thus, the subject steel seamless line pipes are not
subject to the Section 232 duties.
HOLDING:
You are instructed to GRANT the protest. In addition, you are instructed to notify the
protestant of this decision no later than 60 days from the date of this decision. Any reliquidation
of the entry or entries in accordance with the decision must be accomplished prior to this
notification. Sixty days from the date of the decision, the Office of Trade, Regulations and
Rulings will make the decision available to CBP personnel and the public on the Customs
Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or other methods of public
distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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