CLA-2-73:OT:RR:NC:N1:116
Ms. Darlene DiBernardo
A.N. Deringer Inc.
173 West Service Road
Champlain, NY 12919
RE: The tariff classification, country of origin, and applicability of trade programs of a self-drilling hollow bar and coupler from Austria and a clay bit from China
Dear Ms. DiBernardo:
In your letter dated December 20, 2019, you requested a tariff classification ruling on behalf of your client, SAS Stressteel, Inc. The three items to be imported are described as a Self-Drilling Hollow Bar 051-800 3m Cast-No. 808100, a coupler “NG” R51N/063/L180, and a Clay Bit R51/130 Casted.
Item number one (1) is actually two self-drilling hollow bars. The first is described as steel grade 28Mn6 and is a welded, hollow bar with an outside diameter of 51 mm and an inside diameter of 29.5 mm. The chemistry provided for this bar indicates this product is manufactured from alloy steel. The second self-drilling hollow bar is described as steel grade 36Mn5 and is a seamless, hollow bar with an outside diameter of 51 mm and an inside diameter of 29.5 mm. The chemistry provided for this bar indicates this product is manufactured from nonalloy steel. You indicate the thread on both bars is cold-rolled.
Item number two (2), the “NG” R51N/063/L180 coupler, is described as 42CrMo4 alloy steel and specifically designed for use with the self-drilling hollow bar. It is threaded on the inside and its principal use is to join self-drilling hollow bars to obtain a desired drill depth. The coupler will be imported in five different lengths: 125 mm, 163 mm, 180 mm, 160 mm, and 220 mm.
In your request you suggest that the “Self-Drilling Hollow Bar 051-800 3M” and the “Coupler NG R51N/063/480” are properly classified in subheading 8431.49.9030, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for “Parts, suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8426, 8429 or 8430: (con.): Other: Other: Other: Other.” This office disagrees and is of the opinion that the subject merchandise are not integral, constituent or component parts of machinery in heading 8430, HTSUS, and are more specifically provided for elsewhere in the tariff schedule.
The applicable subheading for the 28Mn6 self-drilling hollow bar will be 7306.50.5030, 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 circular cross section of other alloy steel: other: other, cold-drawn or cold-rolled (cold-reduced). The rate of duty will be free.
The applicable subheading for the 36Mn5 self-drilling hollow bar will be 7304.31.3000, HTSUS, which provides for tubes, pipes, and hollow profiles, seamless, of iron (other than cast iron) or steel: other, of circular cross section, of iron or nonalloy steel: cold-drawn or cold-rolled (cold-reduced): hollow bars. The rate of duty will be free.
The applicable subheading for the “NG” R51N/063/L180 coupler will be 7307.92.3030, HTSUS, which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: other: threaded elbows, bends and sleeves: sleeves (couplings): of alloy steel (except stainless steel). The rate of duty will be 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 7306.50.5030 or 7304.31.3000, HTSUS, may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 subheading applicable to your 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 you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 numbers.
Item number three (3), described as a Clay Bit R51/130 Casted, is a rotary bit made of cast iron. You have stated that the cutting part contains greater than 0.2 percent by weight of Molybdenum. The bit is designed to be used in an earth boring process. It incorporates threads that enable it to be screwed into and attached/affixed to an ANP Self-Drilling Hollow Bar System.
The applicable subheading for item number three (3), Clay Bit R51/130 Casted, will be subheading 8207.19.3060, HTSUS, which provides for “Interchangeable tools for handtools, whether or not power operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screwdriving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof: Rock drilling or earth boring tools, and parts thereof: Other, including parts: With cutting part containing by weight over 0.2 percent of chromium molybdenum, or tungsten or over 0.1 percent of vanadium…Other: Rotary rock drill bits, core bits and reamers.” The general rate of duty will be 5 per cent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8207.19.3060, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8207.19.3060, HTSUS, listed above.
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.
You have also requested a country of origin determination. From the information provided, the self-drilling hollow bars and the coupler are manufactured in Austria, while the clay bit is manufactured in China. Therefore the country of origin for the self-drilling hollow bars and for the coupler is Austria. The country of origin for the clay bit is China.
You have also requested a determination of the applicability of trade programs or trade agreements. The United States does not currently have in effect a trade program or trade agreement with either Austria or China. The self-drilling hollow bars are subject to additional duties under Presidential proclamations 9704 and 9705, as indicated above. The clay bit is subject to additional duties under U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, as indicated above.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division