CLA-2-73:OT:RR:NC:N1:113
Mr. Yukio Ito
US Leakless, Inc.
136 Roy Long Road
Athens. AL 35611
RE: The tariff classification of rubber coated chromate-free electro galvanized steel sheet from Japan
Dear Mr. Ito:
In your letter dated July 24, 2019, you requested a ruling. A product specification sheet was submitted for our review.
The subject product is described as “NB71/LR71 Rubber coated chromate-free electro galvanized steel sheet with bright surface finish and zinc phosphate coating with plating weight within the range of 8.5g/mm2 to 10g/mm 2, thickness range of 0.188mm to 0.212mm, Vickers hardness range of Hv90 to Hv145, elongation minimum of 27%, edge wave maximum of 1%, line bow maximum of 70mm in 1mm length.” The subject sheet will be used for manufacturing automotive gasket.
The rubber coated metal material specification sheet describes the sealing material for metal gaskets. The material is chromate free. The material structure is seal rubber and primer, number LR171, and base metal cold carbon steel.
You proposed classification for NB71/LR71 Rubber coated chromate-free electro galvanized steel sheet under subheading 7215.50, HTSUS, which provides for other bars and rods of iron or nonalloy steel: Other, not further worked than cold-formed or cold-finished. However, the subject sheet is not classifiable under subheading 7215.50, HTSUS, as the coating with rubber does not constitute a permissible further working of the steel, it does not improve the properties or appearance of the steel and does not protect it from corrosion. We note that historically, steel and rubber gasket material has not been classified in Chapter 72. In HQ 083126 dated February 13, 1990, and HQ 964609 dated July 30, 2001, Customs classified nitrile coated steel sheet/strip used in the manufacture of head gaskets under heading 7326, which provides for other articles of iron or steel.
The 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 chromate-free electro galvanized steel sheet 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 sheet at issue. Therefore, in accordance with GRI 3(c), the subject sheet will be classified in the heading which appears last in the tariff. The NB71/LR71 Rubber coated chromate-free electro galvanized steel sheet will be classified in heading 7326, HTSUS, which provides for other articles of iron or steel.
The applicable subheading for the NB71/LR71 Rubber coated chromate-free electro galvanized 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.
Regarding the applicability of Section 232 duties, noting that the correct provision under the HTSUS for the subject NB71/LR71 Rubber coated chromate-free electro galvanized steel sheet is subheading 7326.90.8688, Section 232 duties are not applicable.
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