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HQ 087982


January 9, 1991

CLA-2 CO:R:C:G 087982 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 7302.90.00

Chief, Customs Information Exchange
U.S. Customs Service
6 World Trade Center
New York City, New York 10048

RE: Hot-rolled D-shaped steel bars; rail reinforcing bars; other material specialized for jointing or fixing rails; angles, shapes and sections of steel; Chapter 72, Note 1(n)

Dear Madam or Sir:

This is in response to your September 19, 1990, request for the resolution of a difference of opinion between the Buffalo, New York port and the National Import Specialist ("NIS") in New York on certain hot-rolled D-shaped steel bars.

FACTS:

The articles in question are hot-rolled D-shaped steel bars. The bars are imported from Canada by Midwest Steel Corp. of Hogansville, Georgia. The D-shaped bars measure approximately one-half inch in thickness and approximately four inches in width. The bars may be imported in varying lengths and may be cut to length in the United States. The bars imported through Buffalo range in length from 18'5" to 30'. The usual length is from 11' to 16'4".

Upon importation the bars are intended for use as reinforcement bars for railway tracks. The bars are referred to as rail reinforcing bars. Rail reinforcing bars are used to protect switch points against possible fracture. Switch points are movable tapered track rail which divert rolling stock from one track to another. The reinforcing bars are bolted or riveted along one or both sides of the web of the rail. The reinforcing bars strengthen the rail section and protect against accidents in case a fracture occurs.

The import specialist in Buffalo believes that these bars are classified in subheading 7216.50.00, Harmonized Tariff Schedule of the United States ("HTSUSA"), as "Angles, shapes and sections of iron or nonalloy steel...Other angles, shapes and
sections, not further worked than hot-rolled, hot-drawn or extruded..." The NIS believes that the bars are classified in subheading 7302.90.00, HTSUSA, as "Railway or tramway track construction material of iron or steel, the following: rails... and other material specialized for jointing or fixing rails... Other..."

ISSUE:

Whether the hot-rolled D-shaped steel bars are classified in subheading 7216.50.00, HTSUSA, as "Angles, shapes and sections of iron or nonalloy steel...Other angles, shapes and sections, not further worked than hot-rolled, hot-drawn or extruded...", or in subheading 7302.90.00, HTSUSA, as "Railway or tramway track construction material of iron or steel, the following: rails... and other material specialized for jointing or fixing rails... Other..."

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation ("GRIs"). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..." The two headings in contention are heading 7216 and 7302, HTSUSA. These headings describe the following:

7216 Angles, shapes and sections of iron or nonalloy steel...

7302 Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (cross-ties), fish- plates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialized for jointing or fixing rails...

The bars in question are undoubtedly "angles, shapes and sections" of steel. Therefore, they are classifiable in heading 7216. However, two experts regarding iron and steel products and railway products have examined the information regarding the subject steel bars. These experts stated that the articles in question are unique to the rail construction industry and are known
components for railway track construction. Thus, the steel bars are "other material specialized for jointing or fixing rails" and are also classifiable in heading 7302. The steel bars meet the terms of both headings.

GRI 1, HTSUSA, requires not only that the terms of the heading must be met, but also that the article being classified must comply with the section and chapter notes. Chapter 72, Note 1(n), HTSUSA, excludes products of heading 7302 from classification as an angle, shape and section in Chapter 72. Therefore, the hot-rolled, D-shaped steel bars cannot be classified in heading 7216.

The legal notes of the HTSUSA require that the hot-rolled D- shaped steel bars be classified under heading 7302. The proper classification for the bars is subheading 7302.90.00, HTSUSA, as "Railway or tramway track construction material of iron or steel, the following: rails... and other material specialized for jointing or fixing rails... Other..."

HOLDING:

In accordance with Chapter 72, Note 1(n), the hot-rolled, D- shaped steel reinforcing bars are excluded from classification in heading 7216. The bars are properly classified, in accord with GRI 1, in subheading 7302.90.00, HTSUSA, as "Railway or tramway track construction material of iron or steel, the following: rails... and other material specialized for jointing or fixing rails... Other..."

The steel bars are manufactured and imported into the United States from Canada. Should the requirements of the General Note 3(c)(vii), HTSUSA, be met, then the steel bars are eligible for the reduced tariff rates under the United States-Canada Free Trade Agreement.

Sincerely,

John Durant, Director
Commercial Rulings Division

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