CLA-2-73:OT:RR:NC:N1:116
Ms. Sandra Lee Watson Parcels
APCO MG USA Inc.
4261 Cates Landing Road
Tiptonville, Tennessee 38079
RE: The tariff classification of unfinished tee fittings from China
Dear Ms. Watson Parcels:
In your letter dated May 5, 2020, you requested a tariff classification ruling.
The products under consideration are described as carbon (nonalloy) steel “bulged hollow profiles” used to manufacture butt weld tee pipe fittings. These unfinished tee fittings, identified as part numbers BHP006, BHP007, BHP008, BHP009 and BHP010, have inside diameters ranging from 127.9 mm to 336.94 mm. According to your submission, after importation, the end of the “bulge” will be cut off and the hole reformed. Next, the tees will be shot blasted, square cut, beveled, die cast and coated. Based on the percentages that were provided for certain elements in the chemistry, namely copper 1.5% max, nickel 1.0% max, molybdenum 0.25% max, vanadium 0.13% max and boron 0.001% max, the subject merchandise can be classified as either a nonalloy or an other alloy steel.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRI's). GRI 1 provides, in part, that "classification shall be determined according to the terms of the headings and any relative section or chapter notes." GRI 2(a) provides 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. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Explanatory Note (EN) II under GRI 2(a) in the Harmonized Commodity Description and Coding System provides guidance on the application of GRI 2(a), stating that the provisions of this rule also apply to blanks unless these are specified in a particular heading. The term “blanks” 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. This office finds that the unfinished tees are fittings of heading 7307, HTSUS.
The applicable subheading for the unfinished tees containing less than 0.4 percent copper, less than 0.3 percent nickel, less than 0.08 percent molybdenum, less than 0.1 percent vanadium and less than 0.0008 percent boron will be 7307.93.3040, HTSUS, which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: other: butt welding fittings: with an inside diameter of less than 360 mm: of iron or nonalloy steel: other. The rate of duty is 6.2 percent ad valorem.
The applicable subheading for the unfinished tees containing 0.4 percent or more of copper and/or 0.3 percent or more of nickel and/or 0.08 percent or more of molybdenum and/or 0.1 percent or more of vanadium and/or 0.0008 percent or more of boron will be 7307.93.6000, HTSUS, which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: other: butt welding fittings: with an inside diameter of less than 360 mm: of alloy steel (except stainless steel). The rate of duty is 5.5 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 at https://hts.usitc.gov/current.
Please be advised that carbon steel butt weld pipe fittings from China may be subject to antidumping duties and 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 https://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 https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7307.93.3040 and 7307.93.6000, HTSUS, unless specifically excluded, are subject to an additional 25 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 subheadings 7307.93.3040 and 7307.93.6000, 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.
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