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HQ 950626


FEBRUARY 19 1992

CLA-2:CO:R:C:M 950626 JAS

CATEGORY: CLASSIFICATION

TARIFF NO.: 7208.90.00, HTSUS

Vincent Bowen, Esq.
Willkie Farr & Gallagher
1155 21st. Street, N.W.
Washington, D.C. 20036-3384

RE: Hot-Rolled Nonalloy Steel Plate; Flat-Rolled Nonalloy Steel, Bevelled, Perforated, or Bevelled and Perforated; Steel Plate, Further Worked

Dear Sir:

In your letter dated October 17, 1991, on behalf of Primary Steel Inc., North Haven, Connecticut, you inquire as to the tariff classification of certain hot rolled steel plate from Brazil. Drawings were submitted. Our ruling follows.

FACTS:

ASME carbon grade A-455 and other carbon grades of steel plate are hot rolled from slab. In subsequent processes, the plate will be either bevelled or perforated, or both bevelled and perforated. Bevelling involves angling the two lengthwise edges to facilitate welding, and perforating involves drilling or torch cutting five (5) holes at specific locations to accommodate piping. The hot rolled plates will be imported in three (3) standardized sizes: 93 5/8 inches x 66 inches x .199 inches, 117 3/4 inches x 84 1/2 inches x .248 inches, and 128 1/4 inches x 77 inches x .271 inches. The plates will also be imported in nonstandardized sizes: 96-270 inches x 36-160 inches x 3/16-9 inches. After importation, the plates will be rolled into cylinders and welded along the bevelled edges, then further fabricated into liquid gas propane storage tanks and pressure vessels.

You indicate that the imported plates are flat-rolled products as defined in Chapter 72, Note 1(k), HTSUS, and are
provided for in heading 7208, flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated. You maintain that the plates are not further worked than hot-rolled because they are further worked by bevelling and/or perforating. You conclude that subheading 7208.90.00, other flat-rolled products of iron or nonalloy steel, other, represents the correct classification.

ISSUE:

Whether either bevelling or perforating, or bevelling and perforating together, constitute further working for purposes of heading 7208.

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 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, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6.

In accordance with Chapter 72, Note 1(k), flat-rolled products in straight lengths of the required dimensions include those with patterns in relief derived directly from rolling (for example, grooves, ribs, checkers, tears, buttons, lozenges), and those which have been perforated, corrugated or polished, provided that they do not thereby assume the character of articles or products of other headings. However, from this legal note we are unable to differentiate flat-rolled products that are considered further worked from such products that are not considered further worked.

However, relevant Harmonized Commodity Description And Coding System Explanatory Notes (ENs) at p. 994 expand on the meaning of note 1(k). These ENs indicate that patterns in relief, described as grooves, ribs, chequers, tears, buttons and lozenges are derived directly from the rolling of flat-rolled products of heading 7208, but that flat-rolled products of this heading are considered to have been worked after rolling if they have been perforated, corrugated, bevelled or rounded at the edges (Emphasis added).

Applying this criteria to the merchandise in issue, we find that hot-rolled plate with bevelled edges, and such plate with holes cut (perforated), as described, are considered to be
further worked after rolling for purposes of heading 7208. The same result obtains for hot rolled plate that has been both bevelled and perforated. There is no indication that by virtue of this processing the hot-rolled plate has assumed the character of containers for compressed or liquified gas of heading 7311 or articles of any other heading.

HOLDING:

Under the authority of GRI 1, HTSUS, hot-rolled nonalloy steel plate that has been either bevelled or perforated, and such plate that has been bevelled and perforated, as described, is provided for in heading 7208. Actual classification is in subheading 7208.90.00, HTSUS, flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated, other. The rate of duty is 5 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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