CLA-2-72:OT:RR:NC:1:117

Mr. R. Kevin Williams
Clark Hill PLC
150 North Michigan Avenue
Suite 2700
Chicago, IL 60601

RE: The tariff classification of stainless steel bar/rod from Japan. Correction to New York Ruling N260798

Dear Mr. Williams:

This letter replaces New York Ruling N260798 dated February 5, 2015. In reviewing that ruling, we found that a clerical error was made. The error has been corrected in the text below.

In your letter dated January 13, 2015, you requested a tariff classification ruling on behalf of your client, Daido Steel (America) Inc.

The items under consideration are identified as two different types of round stainless steel wire products: 1) broached stainless steel wire, referred to as WB wire, and 2) broached and drawn stainless steel wire, referred to as WD wire. These wire products have diameters ranging from 4.5 mm to 21 mm and will be imported in coils.

The WB wire product is manufactured by hot-rolling stainless steel billets into wire rod, which is subsequently spheroidize annealed and then broached. You state that wire broaching is a cold-working or cold-finishing process in which the rod is pulled through a reverse conical die to mechanically remove portions of the metal (surface defects) and to improve its dimensional accuracy. After broaching, the wire rod is eddy-current tested to detect flaws and then recoiled, tagged and stored.

Although the WB wire product has the dimensions and appearance of wire, historically Customs has held that mechanical removal of metal to eliminate surface defects and to size the product is not a cold-forming process. You cite HQ Ruling 964551 which concerned the classification of shaved or peeled stainless steel wire rod. In that ruling, it was determined that shaving or peeling are operations designed to remove metal and are not cold-forming operations, but rather a form of cold-finishing. As such, the shaved or peeled stainless steel wire rod was classified as a bar and rod of heading 7222, Harmonized Tariff Schedule of the United States (HTSUS), and not wire of heading 7223, HTSUS.

This office would consider the broaching process described in your submission comparable to the shaving operations discussed in HQ 964551 in which wire rod was pulled through a reverse conical die in order to remove surface defects. As such, we find that the subject broached WB stainless steel wire product should be classified as a bar/rod in heading 7222, HTSUS.

The applicable subheading for the WB bar/rod with a maximum cross-sectional dimension of less than 18 mm will be 7222.20.0047, HTSUS, which provides for bars and rods, not further worked than cold-formed or cold-finished, other, with a maximum cross-sectional dimension of less than 18 mm, containing less than 8 percent by weight of nickel. The rate of duty will be free.

The applicable subheading for the WB bar/rod with a maximum cross-sectional dimension of 18 mm or more and less than 152.4 mm will be 7222.20.0082, HTSUS, which provides for bars and rods, not further worked than cold-formed or cold-finished, other, with a maximum cross-sectional dimension of 18 mm or more and less than 152.4 mm, containing less than 8 percent by weight of nickel. The rate of duty will be free.

The WD wire product is manufactured in a similar manner as the WB bar/rod. Stainless steel billets are hot-rolled into wire rod which is first spheroidize annealed and then broached, recoiled and lubricated. However, unlike the WB bar/rod, the WD wire product is then cold-drawn into wire. After drawing, the wire is eddy-current tested to detect flaws and then recoiled, tagged and stored. Since the wire rod is cold-drawn (a cold-forming operation) into wire and will be imported in coils, the WD wire product meets the Chapter 72, Note 1(o) definition of wire.

The applicable subheading for the WD wire having a diameter of less than 5.1 mm will be 7223.00.1061, HTSUS, which provides for wire of stainless steel, round wire, other, with a diameter of 1.52 mm or more but less than 5.1 mm. The rate of duty will be free.

The applicable subheading for the WD wire having a diameter of 5.1 mm or more will be 7223.00.1076, HTSUS, which provides for wire of stainless steel, round wire, other, with a diameter of 5.1 mm or more. The rate of duty will be free.

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 on World Wide Web at http://www.usitc.gov/tata/hts/.

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 Mary Ellen Laker at [email protected].


Sincerely,

Gwenn Klein Kirschner
Director
National Commodity Specialist Division