CLA-2-73:OT:RR:NC:N1:117
Mr. Frank Prackler
Harold I. Pepper Co., Inc.
82 Pine Street, Suite 202
Freeport, NY 11520
RE: The tariff classification and country of origin of steel pipe from Vietnam
Dear Mr. Prackler:
In your letter dated March 8, 2019, you requested a tariff classification ruling on behalf of your client, Matco-Norca LLC.
The products under consideration are described as pipe nipples made from pre-cut Vietnamese pipe. According to your submission, plain end Electric Resistance Welded (ERW) steel pipe from Vietnam measuring 5 meters to 6.4 meters in length is exported to China where it is cut to lengths ranging from 12.5 inches to 180 inches, chamfered, threaded, cleaned, an anti-rust treatment is applied and then packaged. The pipe is subsequently imported to the United States.
The originating pipe is made to ASTM A53, Grade B standards in galvanized and black finishes with wall thicknesses ranging from 2.77 mm to 7.11 mm and outside diameters ranging from 21.3 mm to 168.3 mm. The chemistry you provided gives the maximum percentage of the elements that make up the steel. Depending on the exact chemistry at the time of importation, the pipe could be alloy or nonalloy steel. See HTSUS, Chapter 72, Note 1(f) for the definition of other alloy steel.
Cut-to-length steel pipe sections/pipe nipples measuring up to 12 inches in length are considered in the trade to be pipe fittings. However, since the pipe nipples in question are imported in lengths longer than 12 inches, they are precluded from classification as pipe fittings and for tariff purposes are considered to be pipe.
The applicable subheading for the nonalloy steel pipe that is galvanized and has an outside diameter not exceeding 114.3 mm will be 7306.30.5032, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other tubes, pipes and hollow profiles, of iron or steel, other, welded, of circular cross section, of iron or nonalloy steel: having a wall thickness of 1.65 mm or more; other: other: with an outside diameter not exceeding 114.3 mm: galvanized: other. The rate of duty will be free.
The applicable subheading for the nonalloy steel pipe that is not galvanized and has an outside diameter not exceeding 114.3 mm will be 7306.30.5055, HTSUS, which provides for other tubes, pipes and hollow profiles, of iron or steel, other, welded, of circular cross section, of iron or nonalloy steel: having a wall thickness of 1.65 mm or more; other: other: with an outside diameter not exceeding 114.3 mm: other: other. The rate of duty will be free.
The applicable subheading for the nonalloy steel pipe that is galvanized and has an outside diameter exceeding 114.3 mm but less than 406.4 mm will be 7306.30.5085, HTSUS, which provides for other tubes, pipes and hollow profiles, of iron or steel, other, welded, of circular cross section, of iron or nonalloy steel: having a wall thickness of 1.65 mm or more: other: other: with an outside diameter exceeding 114.3 mm but not exceeding 406.4 mm: galvanized. The rate of duty will be free.
The applicable subheading for the nonalloy steel pipe that is not galvanized and has an outside diameter exceeding 114.3 mm but less than 406.4 mm will be 7306.30.5090, HTSUS, which provides for other tubes, pipes and hollow profiles, of iron or steel, other, welded, of circular cross section, of iron or nonalloy steel: having a wall thickness of 1.65 mm or more: other: other: with an outside diameter exceeding 114.3 mm but not exceeding 406.4 mm: other. The rate of duty will be free.
The applicable subheading for the alloy steel pipe not exceeding 114.3 mm will be 7306.50.5050, HTSUS, which provides for provides for other tubes, pipes and hollow profiles, of iron or steel: other, welded, of circular cross section, of other alloy steel: having a wall thickness of 1.65 mm or more: other: other: with an outside diameter not exceeding 114.3 mm. The rate of duty is free.
The applicable subheading for the alloy steel pipe with an outside diameter exceeding 114.3 mm but less than 406.4 mm will be 7306.50.5070, HTSUS, which provides for other tubes, pipes and hollow profiles, of iron or steel: other, welded, of circular cross section, of other alloy steel: having a wall thickness of 1.65 mm or more: other: other: with an outside diameter exceeding 114.3 mm but not exceeding 406.4 mm. The rate of duty is 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.
In addition to classification, you are requesting a country of origin determination for the subject merchandise. Section 134.1(b) of the Customs Regulations 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".
A substantial transformation occurs when an article loses its separate identity and becomes a new article having a new name, character or use. We find that the origin of the pipes is Vietnam. The pipes do not lose their identity and are not substantially transformed when cut and processed as you describe in China. The product manufactured in Vietnam is pipe and the product to be imported from China remains pipe.
The merchandise in question may be subject to antidumping duties or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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 subheadings 7306.30.5032, 7306.30.5055, 7306.30.5085, 7306.30.5090, 7306.50.5050 and 7306.50.5070, 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 subheadings.
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