CLA-2-72:OT:RR:NC:N5:117
Farid Elias Handal
TRADEXO LLC
5718 Westheimer Road
Houston, TX 77057
RE: The tariff classification, country of origin, marking, and eligibility for preferential tariff treatment under
the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA)
Dear Mr. Handal:
In your letter dated August 22, 2025, you requested a ruling on the tariff classification, country of origin,
marking, and eligibility for preferential tariff treatment under the DR-CAFTA.
The products to be imported are ALUZINC nonalloy steel planks for use in fence construction. The planks
are coated in Aluminum-Zinc (AZ) and a layer of Regular Modified Polyester (RMP) for corrosion
resistance. Each plank measures 70 inches tall by 6.5 inches wide.
In your request, you suggest that the steel planks are properly classified under subheading 7308.90.9590,
Harmonized Tariff Schedule of the United States (HTSUS), which provides for Structures (excluding
prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections,
lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and
thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes,
sections, tubes and the like, prepared for use in structures, of iron or steel: Other: Other: Other: Other: Other.
We disagree with this classification and turn to the Explanatory Notes (ENs) of the HTSUS for guidance as
to the proper classification of the merchandise concerned.
When interpreting and implementing the HTSUS, the ENs of the Harmonized Commodity Description and
Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding
commentary on the scope of each heading, and are generally indicative of the proper interpretation of the
HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128
(August 23, 1989).
EN 72.16 provides, in pertinent part, as follows:
Angles, shapes and sections are defined in Note 1 (n) to this Chapter. The heading includes goods which have
been cold-formed or cold finished (by cold-drawing, etc.) and also covers angles, shapes and sections made
by forming on a roll type machine or by forming sheets, plates or strip on a press. So-called “ribbed sheets
and plates” having an angular profile are also classified here.
The products of this heading may have been subjected to working such as drilling, punching or twisting or to
surface treatment such as coating, plating or cladding - see Part IV (C) of the General Explanatory Note to
this Chapter, provided they do not thereby assume the character of articles or of products falling in other
headings.
The planks under consideration have been formed into an angular shape by means of a roll forming machine
as described in the EN to heading 7216 and have not been prepared for use in a structure. Therefore, it is the
opinion of this office that the steel planks are classified in heading 7216, HTSUS. (See New York Ruling
N039662 dated October 17, 2008).
The applicable subheading for the steel planks will be 7216.61.0000, HTSUS, which provides for Angles,
shapes and sections of iron or nonalloy steel: Angles, shapes and sections, not further worked than
cold-formed or cold-finished: Obtained from flat-rolled products. The rate of duty will be free.
You inquire whether the planks are eligible for preferential duty treatment under the DR-CAFTA.
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the
DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good
imported into the customs territory of the United States is eligible for treatment as an originating good under
the terms of this note if—
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the
Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—
(A) each of the non-originating materials used in the production of the good undergoes an applicable change
in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in
subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively
from originating materials.
Based on the facts provided, the subject planks are manufactured in Honduras from nonalloy steel coils from
China. As such, the goods are not wholly obtained or produced entirely in the territory of one or more parties
to the DR-CAFTA. Therefore, GN 29(b)(i) may be not be used to determine the origin of the finished articles
and analysis must continue to GN 29(b)(ii).
In order to meet the requirements of GN 29(b)(ii)(A), the goods must be produced entirely in the territory of
one or more parties to the DR-CAFTA and each of the non-originating materials used in the manufacture of
the goods undergoes an applicable change in tariff classification specified in subdivision (n) of this note.
Since we have determined that the subject steel planks are classified in heading 7216, HTSUS, the applicable
tariff shift rule for these products is set forth in GN 29(n), Chapter 72, Rule 3, which reads: A change to
headings 7208 through 7229 from any other heading. The steel coils from China are classified in heading
7210, HTSUS. Therefore, the tariff shift requirement is not met, and the steel planks are not eligible for
preferential treatment under the DR-CAFTA.
In addition to DR-CAFTA eligibility, you are requesting a country of origin determination for the subject
steel sheets for marking purposes.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and International Emergency Economic Powers Act (IEEPA) additional duties, the substantial transformation
analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for
determining whether a substantial transformation will occur is whether an article emerges from a process
with a new name, character, or use different from that possessed by the article prior to processing. See Texas
Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality
of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201
(Fed. Cir. 1993).
In your letter, you outline a scenario in which nonalloy steel coils are manufactured in China. The steel coils
are pre-galvanized and coated with RMP before being shipped to Honduras. In Honduras, the coils undergo
slitting, shaping of the rounded head plank, and roll forming. The individual planks are then packaged and
shipped to the United States.
Based on the facts presented, we find that cutting and pressing the coils into angular steel planks are basically
finishing operations of the nonalloy steel coils and do not constitute a substantial transformation in Honduras.
Therefore, we find that the country of origin of the steel planks will be China. Please note that subheading
7216.61.0000, HTSUS, is precluded from Section 232 duties. (See U.S. note 16 to subchapter III, 99 (b)(ii)).
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 7216.61.0000, HTSUS, 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 of China, Hong
Kong, and Macau will be subject to an additional ad valorem rate of duty of 10 percent. At the time of entry,
you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition
to subheading 7216.61.0000, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 7216.61.0000, 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., 9903.88.03,
in addition to subheading 7216.61.0000, 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)
Denise Faingar
Acting Director
National Commodity Specialist Division