CLA-2-73:OT:RR:NC:N1:116
Mr. Matias Gallegos
Givens & Johnston, PLLC
950 Echo Lane
Houston, Texas 77024
RE: The tariff classification of alloy steel line pipe from Germany
Dear Mr. Gallegos:
In your letter dated May 25, 2023, you requested a tariff classification ruling on behalf of your client, ITP-SA.
The product under consideration is identified as 36%Ni-64%Fe alloy (Invar®) line pipe used to transport liquid natural gas (LNG). According to your submission, this alloy steel pipe is cold-rolled from plate and then longitudinally welded. The pipe will be imported in four sizes: 1) 28” (711.2 millimeters (“mm”) outside diameter with a wall thickness of 8.3 mm; 2) 34” (863.6 mm) outside diameter with a wall thickness of 9.7 mm; 3) 40” (1016 mm) outside diameter with a wall thickness of 13.0 mm and 4) 40” (1016 mm) outside diameter with a wall thickness of 17.3 mm.
You suggest classification of the 36%Ni-64%Fe alloy line pipe in subheading 7507.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for nickel tubes, pipes and tube or pipe fittings (for example, couplings, elbows, sleeves): tube or pipe fittings. We disagree. First, the product in question is a pipe and not a tube/pipe fitting. Secondly, based on the chemistry provided, the product meets the definition of steel. Although the pipe is made of iron-nickel alloy, it is the iron (64%) which predominates by weight over the nickel (36%). Therefore, the pipe is precluded from classification in a nickel provision.
The applicable subheading for the alloy steel line pipe will be 7305.12.5000, HTSUS, which provides for other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross sections, the external diameter of which exceeds 406.4 mm, of iron or steel: line pipe of a kind used for oil or gas pipelines: other, longitudinally welded: of alloy steel. The rate of duty will be free.
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 subheading 7305.12.5000, 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.
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.
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