CLA-2-73:OT:RR:NC:N1:117
Mr. Charles Trepanier
Ben-Mor Cables Inc.
1105 rue Lemire
Saint-Hyacinthe
Quebec, Canada J2T 1L8
RE: The tariff classification and country of origin of a steel sling
Dear Mr. Trepanier:
In your letter dated December 18, 2018, you requested a tariff classification ruling. A representative sample was included with your request and will be retained by this office.
The product under consideration is identified as a steel round sling. The sling consists of one 1/16” diameter galvanized carbon steel aircraft cable made in China with a 7 X 7 construction (7 strands of 7 wires) that is wound in an endless configuration and is covered by a black polyester woven tubing that is made in Canada. You indicate that the sling is used in the entertainment industry mainly for suspending and lifting lighting and sound equipment.
The applicable subheading for the steel sling will be 7312.10.3070, Harmonized Tariff Schedule of the United States (HTSUS), which provides for stranded wire, rope, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated: stranded wire, ropes and cables: stranded wire: other: other: other: other: galvanized: other: covered with textile or other nonmetallic material. 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 the World Wide Web at https://hts.usitc.gov/current.
You have also requested a country of origin determination for this product. While the NAFTA marking rules contained in 19 C.F.R. Part 102 will determine the country of origin for marking purposes, the substantial transformation test will determine the country of origin for purposes of applying current trade remedies under Section 301, Section 232, and Section 201.
Section 134.1(b), Customs Regulations (19 CFR 134.1(b), defines "country of origin" as the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of Part 134.
A substantial transformation occurs when an article emerges from a process with a new name, character, and use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Ass’n v. United States, 628 F.Supp. 978 (Ct. Int’l Trade 1986).
You indicate that galvanized steel cable of Chinese origin is shipped to Canada on master reels. In Canada, the cable is reeled off, cut and wrapped around a drum to make a continuous endless sling. Once the desired length is achieved, the cable strands are cut, taped together and then covered with a polyester tubing that is made in Canada. A tag is then sewn on the tubing which shows the capacities of the sling. We find that the operations performed in Canada does not effect a substantial transformation. As such, we find the country of the steel sling to be China.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 7312.10.3070, HTSUS, unless specifically excluded, are subject to the additional 10 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 7312.10.3070, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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