CLA-2-72:OT:RR:NC:N5:117

Allison Kepkay
White & Case LLP
701 Thirteenth Street, NW
Washington, DC 20005

RE:      The country of origin of nonalloy steel purlins

Dear Ms. Kepkay:

In your letter dated July 27, 2023, you requested a country of origin ruling and applicability of Section 232 Duties on behalf of your client, Productos Laminados de Monterrey S.A. de C.V. (“Prolamsa”).

The products under consideration are purlins made of nonalloy (carbon) steel. The purlins are prefabricated steel building materials used to support building roofs, which distribute loads in between primary framing materials. The purlins are cold-rolled into angles (i.e., “L” and “Z” sections and channels, “C” sections and poultry purlins). They are imported in widths of 3 to 14 inches and produced in lengths of 25 and 30 feet. You indicate that certain purlins are hole punched.

The applicable subheading for the purlins will be 7216.61.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Angles, shapes and sections of iron or nonalloy steel: Angles shapes and sections, not further worked than cold-formed or cold-finished: Obtained from flat-rolled products. The rate of duty will be free.

In your country of origin request you describe a scenario wherein purlins are manufactured in Mexico from galvanized hot-rolled steel coils (“HRC”) originating from Mexico or Japan. The HRC is cut-to-length and cold-rolled into angles (i.e., “L” and “Z” sections and channels, “C” sections and poultry purlins). Certain purlins may be hole punched if necessary, prior to the cold-forming operations.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements of 19 U.S.C. §1304. Pursuant to 19 CFR 134.1(b), “country of origin” means the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this part. As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a “substantial transformation,” that is, processing which results in a change in the article's name, character, or use.”

Based on the facts presented, it is the opinion of this office that the manufacturing operations performed in Mexico, such as cold-forming HRC into angles, shapes and sections result in a substantial transformation. As such, the country of origin of the purlins will be Mexico. Products of Mexican origin are excluded from Section 232 trade remedy duties. (See Headquarters rulings HQ 080277 dated September 21, 1987, and HQ 089538 dated August 7, 1991).

The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Denise Hopkins at [email protected].


Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division