CLA-2-73:OT:RR:NC:N1:113
Mr. Milton T. Tamamoto
Nippon Express USA Inc.
230-19 International Airport Center Blvd., Suite 100
Jamaica, NY 11413
RE: The tariff classification of steel lid discs from Taiwan
Dear Mr. Palenica:
In your letter dated May 8, 2018, on behalf of your client, Kanematsu USA Inc. you requested a tariff classification ruling. Descriptive literature and photographs of the steel lid discs were submitted for our review.
The articles under consideration are described as steel lid discs for steel drum tops and bottoms. You indicated that after the factory in Taiwan receives the coils from the steel manufacturer, the coils are loaded onto a derailer that feeds a stamping press machine that stamps out the discs. The discs are then stacked on a skid for final packaging before being shipped to the United States. The size of each disc is approximately 1.1 mm in thickness with an outside diameter of 23.375”. Future business may include discs ranging in size from approximately 0.8 mm to 1.4 mm in thickness with diameters ranging from 25.118 inches to 25.75 inches. You stated that “The product is imported in a disc blank state…The product is dedicated for the use by our customer as a top and bottom, typically for a 55 gallon steel drum. Our customers will drill an opening hole in the top and shape both the bottom and top to be added to a steel drum.”
Our office disagrees with your proposed classification for the subject articles under subheading 8309.90.0000, Harmonized Tariff Schedule of the United States (HTSUS) which provides for stoppers, caps and lids, capsules for bottles, threaded bungs, bung covers, seals and other packing accessories, and parts thereof, of base metal, other. Classification of the disc blanks is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the tariff headings and any relative section or chapter notes. GRI 2(a) HTSUS, states in part that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.
The provisions of Rule 2(a) apply to the imported merchandise if they qualify as blanks. The Explanatory Notes to GRI 2(a) provide specific guidance on the application of the rule to articles referred to as "blanks". EN (II) to the GRI states in pertinent part:
(II) The provisions of this rule also apply to blanks unless these are specified in a particular heading. The term "blank" means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part.
Examination of the submitted photograph and description of the articles under consideration reveals that the disc blanks are flat, 1.1 mm thick pieces of cold rolled carbon steel that have been stamped into a circular shape. You stated that this article is “dedicated for the use by our customer as a top and bottom, typically for a 55 gallon steel drum.” However, in order to have the essential character of a drum top or bottom, the imported components must be advanced to the point that they are recognizable as a drum top or bottom, i.e., having the essential features. This office finds that, as imported, these articles do not have the essential character of a completed article and are merely shapes that may be used to make a variety of articles for which ASTM A1008 cold rolled carbon steel is suitable.
As requested, this office considered NY G83038 dated October 17, 2000. However, NY G83038 did not provide enough description to determine the specific physical state of the can ends at the time of importation to determine if they were merely flat, circular discs in roughly the size of the finished can, or if they were finished ends ready to be attached to the cans. Therefore, this office could not use NY G83038 in making a determination in this instance.
The applicable subheading for the steel lid discs will be 7326.19.0080, HTSUS, which provides for other articles of iron or steel, forged or stamped, but not further worked, other, other. The rate of duty will be 2.9 percent ad valorem.
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 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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division