CLA-2-73:OT:RR:NC:N1:116
Mr. Ivan Passoni
FAD Flange Acciaio E Derivati S.P.A. FAD
VIA G. Boneschi, No #1
Cambiago, Lombardy 20040
Italy
RE: The tariff classification of unfinished butt weld pipe fittings from Italy
Dear Mr. Passoni:
In your letter dated September 9, 2020, you requested a tariff classification ruling.
The products to be imported are described as forging parts and are identified as follows: Item 4002, Barred Tee; Item 4003, Blind-T; Item 4005, Wye; Item 4007/4015, Forging Parts; Item 4008/4009/4010, Elbow and Item 4011, Cushion Tee. According to your submission, these parts are designed for use in offshore oil and gas plants and lines. The Barred Tee includes an internal component which is designed to stop a spherical cleaning pig from entering the tee branch and causing a blockage in the piping system. Although described as tees, the Blind-T and the Cushion Tee have only two openings whereas a tee has three openings.
You state that the products under consideration are forged, heat treated and machined and that after importation will require beveling in preparation for butt welding. In an email to this office, you indicated that at least one of the ends (openings) of the subject merchandise connects to a steel pipe and that the other end(s) connects to a steel pipe, flange and/or valve. The steel pipe, flange and/or valve will be butt welded to these parts. Based on the chemical compositions that were provided, the items in question are made from either stainless steel or 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 items in question are unfinished butt weld pipe fittings which are considered “parts of general use” for tariff purposes.
In your request, you proposed that item numbers 4002, 4003, 4005, 4007, and 4015 be classified in subheading 8431.43.4000, HTSUS, which provides for “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8426, 8429 or 8430: Parts for boring or sinking machinery of subheading 8430.41 or 8430.49: Of offshore oil and natural gas drilling and production platforms.” We disagree. In its condition as imported, the items are not identifiable as parts of machinery for offshore oil and natural gas drilling. Furthermore, Section XVI, Note 1 (g) excludes “Parts of general use, as defined in note 2 to section XV, of base metal (section XV), or similar goods of plastics (chapter 39).” As the items meet the definition of a “part of general use,” classification under heading 8431 is precluded.
You suggest classification of item numbers 4008, 4009 and 4010 in subheading 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. However, the fittings under consideration are made from either stainless steel or alloy steel and have been machined. As such, the fittings are precluded from classification in this tariff provision.
The applicable subheading for the unfinished butt weld pipe fittings, if made from stainless steel, will be 7307.23.0090, HTSUS, which provides for tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: other, of stainless steel: butt welding fittings: other. The rate of duty will be 5 percent ad valorem.
The applicable subheading for the unfinished butt weld pipe fittings, if made from alloy steel and having an inside diameter of less than 360 mm, 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 will be 5.5 percent ad valorem.
The applicable subheading for the unfinished butt weld pipe fittings, if made from alloy steel and having an inside diameter of 360 mm or more, will be 7307.93.9060, 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 360 mm or more: of alloy steel (except stainless steel). The rate of duty will be 4.3 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 the stainless steel butt weld pipe fittings 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.
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