CLA-2-72:OT:RR:NC:N5:117
Thomas L. Rosensweet
Newport Metals LLC
155 2nd Street
Jersey City, NJ 07302
RE: The classification of nonalloy steel billets from China
Dear Mr. Rosensweet:
In your letter dated July 30, 2025, you requested a classification ruling.
The products to be imported are nonalloy steel billets measuring 3 inches in width x 3 inches in thickness x
12 inches long and contain less than 0.25 percent by weight of carbon. After importation, the billets will be
used as a raw material for making steel in foundries.
In your request you suggest that the steel billets are classified in subheading 7204.49, Harmonized Tariff
Schedule of the United States (HTSUS), which provides for Ferrous waste and scrap; remelting scrap ingots
of iron or steel: Other. We disagree. Waste and scrap is defined in Section XV, Note 8(a)(ii) as “Metal goods
definitely not usable as such because of breakage, cutting-up, wear or other reasons.” It is the opinion of this
office that the billets meet the definition of semifinished products which are defined in Chapter 72, Note (ij)
as “Continuous cast products of solid section, whether or not subjected to primary hot-rolling; and Other
products of solid section, which have not been further worked than subjected to primary hot-rolling or
roughly shaped by forging, including blanks for angles, shapes or sections.” (See headquarters ruling HQ
957092, dated December 7, 1994)
The applicable subheading for the billets will be 7207.11.0000, HTSUS, which provides for Semifinished
products of iron or nonalloy steel: Containing by weight less than 0.25 percent of carbon: Of rectangular
(including square) cross section, the width measuring less than twice the thickness. The rate of duty will be
free.
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 7207.11.0000, HTSUS, listed above.
On March 12, 2025, Presidential proclamations 10895 and 10896 imposed additional tariffs on products of
steel and aluminum. Additional duties for steel and aluminum products of 50 percent are reflected in Chapter
99, heading 9903.81.87 for steel and heading 9903.85.02 for aluminum. Products classified under
subheading 7207.11.0000, HTSUS, may be subject to additional duties. At the time of entry, you must report
the Chapter 99 heading applicable to your product classification, i.e. 9903.81.87, in addition to the Chapter
72, 73 or 76 subheadings listed above.
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,
including China, 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 7207.11.0000, HTSUS, listed above.
Pursuant to U.S. Note 31 (b) to Subchapter III, Chapter 99, HTSUS, effective September 27, 2024, products
of China classified under subheading 7207.11.0000, 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., 9903.91.01, in addition to subheading 7207.11.0000, HTSUS, listed above.
The 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.
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/current.
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, contact
National Import Specialist Denise Hopkins at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division