CLA-2-73: OT:RR:NC:N1:113
Mr. Boram Kim
Yooil Rubber Co., LTD.
152 Jangansandan-ro Jangan-eup, Gijang-gun
Busan, South Korea
RE: The tariff classification of wire cloth (wire carrier band) from South Korea
Dear Mr. Kim:
In your letter dated September 23, 2022, you requested a tariff classification ruling on wire cloth (wire carrier band). Product descriptions, photographs and a sample were provided for our review.
The article under consideration is identified as a wire cloth also known as wire carrier band, item number STEX-0270Z. The subject article is constructed of galvanized steel wire and polyester yarn. The band consists of bent, zig zag shaped wire, with polyester filament weaved at uniform intervals to reinforce the wire. After importation, the carrier band will serve as a structure over which a rubber or plastic compound is extruded. According to your submission, after extrusion it functions as a reinforcement inside a door seal profile, which may be used on car bodies or electrical cabinets.
In your request, you suggest the “wire cloth” is classifiable under heading 7314, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Cloth (including endless bands), grill, netting and fencing, of iron or steel wire; expanded metal of iron or steel. We disagree. The wire cloth is not manufactured in a way in which the wires are welded at the points of contact or bound at those points by means of an additional wire, whether or not the wires are also interlaced. Instead, the wire cloth is manufactured in a way in which the wires are connected by means of a polyester yarn. Thus, it is precluded from classification under heading 7314 because it is not manufactured in a manner consistent with articles of heading 7314.
The wire cloth (wire carrier band) is comprised of steel and polyester components that are classified in different headings. Classification of merchandise under the 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 schedule covers the steel and polyester components that comprise the wire carrier band 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.
As the subject wire cloth is a composite article, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.” We must determine whether the steel or polyester component imparts the essential character to the wire carrier band. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, based on the breakdown of materials by weight and value, the steel predominates by weight and value over the polyester. Therefore, it is the opinion of this office that the steel imparts the essential character to the composite article. In accordance with GRI 3(b), the wire cloth (wire carrier band) will be classified under heading 7326, HTSUS, which provides for other articles of iron or steel.
The applicable subheading for the wire cloth (wire carrier band), item number STEX-0270Z, will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, 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 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