CLA-2-73:OT:RR:NC:N1:113
Mr. Eduardo Garcia de la Cadena
K Line Logistics USA Inc.
4345 International Parkway, Suite 101
Atlanta, Georgia 30354
RE: The tariff classification of rubber coated steel sheets from Japan
Dear Mr. Garcia de la Cadena:
In your letter dated December 22, 2020, on behalf of your client NCI Manufacturing Inc., you requested a ruling on rubber coated steel sheets. Samples, product descriptions and photographs were submitted for our review.
The subject items are described as “stainless steel and carbon steel sheets covered with rubber that are imported in various widths, and after importation are used in automotive applications for the manufacture of brake shims and automotive gaskets for internal combustion engines.” The rubber coated steel sheets are known commercially as coils of Metakote. You indicated that the steel sheets provide strength to the end products for long term use and durability, and the rubber provides a soft flexible material that constitutes a seal against liquids and gases.
The four items under consideration are identified as product number JZ-3020 Metakote stainless steel sheet, product number RU-5040-1 Metakote stainless steel sheet, product number RS-3825 Metakote cold carbon steel sheet, and product number GB-6440 Metakote cold carbon steel sheet. Product numbers JZ-3020 and RS-3825 will primarily be used for manufacturing automotive gaskets. Product numbers RU-5040-1and GB-6440 will primarily be used for manufacturing automotive brake shims.
Each sheet in question is composed of rubber and steel. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the components of the rubber coated steel sheets in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. The essential character of an item may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. GRI 3(c) states that when goods cannot be classified by reference to GRI 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.
In the opinion of this office, the rubber and steel components are of equal importance. In this case, neither the rubber component nor the steel component imparts the essential character, since both perform significant roles in the function of the sheets at issue. Therefore, in accordance with GRI 3(c), the subject sheets will be classified in the heading which appears last in the tariff. The rubber coated steel sheets will be classified in heading 7326, HTSUS, which provides for other articles of iron or steel.
The applicable subheading for product number JZ-3020 Metakote stainless steel sheet, product number RU-5040-1 Metakote stainless steel sheet, product number RS-3825 Metakote cold carbon steel sheet, and product number GB-6440 Metakote cold carbon steel sheet will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, other, other…other. The rate of duty will be 2.9 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 on World Wide Web at https://hts.usitc.gov/current.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division