CLA-2-72:OT:RR:NC:N1:117
Donald S. Stein
Greenberg Traurig, LLP
2101 L Street, N.W.
Suite 1000
Washington, D.C. 20037
RE: The tariff classification of A9 tool steel bars from China, Ukraine or Slovenia
Dear Mr. Stein:
In your letter dated August 28, 2019, on behalf your client, TG Tools United Co., you requested a tariff classification ruling.
The items in question are two types of A9 tool steel annealed round bars. Although both products are available in lengths of 8-16 feet, the centerless ground bars will measure 0.5 inch (12.7 mm) in diameter, whereas the surface milled bars will have a diameter of 7 inches (177.79 mm). You indicate that this merchandise will be used in the manufacture of dies.
The applicable subheading for the bars with a diameter of 12.7 mm will be 7228.50.1020, Harmonized tariff Schedule of the United States (HTSUS), which provides for Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or nonalloy steel: Other bars and rods, not further worked than cold-formed or cold-finished: Of tool steel (other than high-speed steel): Other: With a maximum cross-sectional dimension of less than 18 mm: Of round or rectangular cross section with surfaces ground, milled or polished. The rate of duty will be free.
The applicable subheading for the bars with a diameter of 177.79 mm will be 7228.50.1060, HTSUS, which provides for Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or nonalloy steel: Other bars and rods, not further worked than cold-formed or cold-finished: Of tool steel (other than high-speed steel): Other: With a maximum cross-sectional dimension of 18 mm or more: Of round or rectangular cross section with surfaces ground, milled or polished. 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.
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 7228.50.1020 and 7228.50.1060, 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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7228.50.1020 and 7228.50.1060, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 7228.50.1020 and 7228.50.1060, 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.
Please note that the bars in question, when imported from Ukraine or Slovenia, will be subject to the 232 Trade Remedy. However, when these bars are imported from China, they will be subject to both the 232 and 301 Trade Remedies.
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 April Cutuli at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division