CLA-2-73:OT:RR:NC:N1:164

SeungJun Shin
SJG Sejong Co., Ltd.
31F U-Tower, 120 Heungdeokjungang-ro, Giheung-gu,
Yongin-si, Gyeonggi-do 16950
Republic of Korea

RE: The tariff classification of a spot-welded assembly of steel sheets from the Republic of Korea

Dear SeungJun Shin:

In your letter dated June 3, 2025, you requested a tariff classification ruling regarding a spot-welded assembly of steel sheets from the Republic of Korea. Technical information was submitted with your request.

The item under consideration is described as a spot-welded assembly of two rectangular stainless steel sheets. Both sheets feature rectangular and diagonal notching at the corners. Based on the submitted documents, the sheets are spot-welded together at the midpoint edge of the long parallel sides. The assembly’s interior sheet is composed of 409L stainless steel. The assembly’s exterior sheet is composed of 432L stainless steel and is embossed with a brand logo. Both sheets measure 354 millimeters (mm) in length by 422 mm in width and are .5 mm thick. After importation, the flat spot-welded sheets will be roll-formed and locked into a cylinder shape. Following assembly with other components, the final product will be an automotive resonator to control the noise generated during the discharge of gases in an automotive exhaust system.

In your letter, you propose classification of the spot-welded assembly of steel sheets in subheading 8708.92, Harmonized Tariff Schedule of the United States (HTSUS), which provides for mufflers and exhaust pipes; parts thereof. We disagree. In its imported condition, the assembly is not identifiable as a component of a silencer. It neither possesses the shape and form of a silencer, nor does it incorporate any additional components that make it suitable for automotive use prior to significant processing in the United States. Consequently, classification in subheading 8708.92, HTSUS, is precluded.

Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).

Heading 7326, HTSUS, is a residual or basket provision which covers a wide range of iron or steel articles that are not more specifically provided for elsewhere in the HTSUS. The ENs to heading 7326 state that “This heading covers all iron or steel articles obtained by forging or punching, by cutting or stamping or by other processes such as folding, assembling, welding, turning, milling or perforating other than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV or included in Chapter 82 or 83 or more specifically covered elsewhere in the Nomenclature.”

Accordingly, an article of iron or steel will be classified in heading 7326 if it is determined that the item is not more specifically provided for in any other heading of the tariff. Noting that the spot-welded assembly of steel sheets is not more specifically provided for under heading 8708 or any other heading of the HTSUS, it will be classified under heading 7326, HTSUS.

The applicable subheading for the spot-welded assembly of steel sheets will be 7326.90.8688, HTSUS, which provides for Other articles of iron or steel: Other: Other: Other: Other: Other. The general rate of duty will be 2.9 percent ad valorem.

On 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 50 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 50 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.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries will be subject to an additional 10 percent ad valorem rate of duty. Your product falls within an excepted subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.33, in addition to subheading 7326.90.8688, HTSUS, listed above.

The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 (C.F.R.), 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 C.F.R. 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 Paul Taylor at [email protected].
Sincerely,

(for)
Steven A. Mack
Director
National Commodity Specialist Division