CLA-2-73:OT:RR:NC:N5:113
Jason Combs
C J International, Inc.
4646 W. Jefferson Blvd, Suite 260
Fort Wayne, IN 46804
RE: The tariff classification of steel racks with forklift slots from China
Dear Mr. Combs:
In your letter dated March 17, 2025, on behalf of your client Encom Polymers LLC d/b/a Aurora Material
Solutions, you requested a tariff classification ruling.
The merchandise under consideration is racks for storage and handling of long PVC pipes or tubes. Each rack
measures 3900 millimeters in length by 1278 millimeters in width by 1292 millimeters in height. They are
made entirely of carbon steel and are powder coated for protection. Each rack features extendable upright
supports for handling higher loads of PVC pipes or tubes. The extendable upright supports can be folded
down which allows for compact storage and stacking of the racks when not in use. Welded to the underside
of the rack are two forklift slots for easy access and maneuvering with a forklift or pallet jack.
The applicable subheading for the steel racks with forklift slots will be 7326.90.8688, Harmonized Tariff
Schedule of the United States (HTSUS), which provides for Other articles of iron or steel: Other:
Other…Other. The rate of duty will be 2.9 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 7326.90.8688, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad
valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03,
in addition to subheading 7326.90.8688, HTSUS, listed above.
HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of
goods covered by the Note cited above and the applicable Chapter 99 subheading. For background
information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including
information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP
websites, which are available at
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and
https://www.cbp.gov/trade/programs-administration/trade-remedies, respectively.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition
to subheading 7326.90.8688, HTSUS, listed above.
March 12, 2025, Presidential proclamation 10896 imposed additional tariffs on certain derivative iron or steel
products. Additional duties for derivative iron or steel products of 25 percent are reflected in Chapter 99,
headings 9903.81.89 and 9903.81.90.?Products provided by heading 9903.81.91 will be subject to a duty of
25 percent upon the value of the steel content.?At the time of entry, you must report the Chapter 99 heading
applicable to your product classification, i.e. 9903.81.90, in addition to subheading 7326.90.8688,
HTSUS.?Derivative iron or steel products processed in another country from steel articles melted and poured
in the United States,?provided for in heading 9903.81.92, are not subject to the additional ad valorem
duties.?Please note that derivative steel products admitted to a U.S. foreign trade zone under ?privileged
foreign status? before March 12, 2025, and entered for consumption on or after March 12, 2025, may be
subject to additional duties under heading 9903.81.93, HTSUS.
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/.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division