HQ 0950929 - Protest No. 0401-91-000108; Hot-Rolled Steel Sheets; "tool steel;" Add. U.S. Note 1(e)(iv) to Chapter 72; Consolidated Cork Corp. and Milton Snedeker Corp. v. United States; GRI 3(a); GRI 6 - United States International Trade Commision Rulings

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HQ 950929

March 31, 1992

CLA-2 CO:R:C:M 950929 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 7226.91.25

District Director
U.S. Customs Service
Thomas P. O'Neill, Jr. Federal Building
10 Causeway Street, Room 603
Boston, Massachusetts 02222-1052

RE: Protest No. 0401-91-000108; Hot-Rolled Steel Sheets; "tool steel;" Add. U.S. Note 1(e)(iv) to Chapter 72; Consolidated Cork Corp. and Milton Snedeker Corp. v. United States; GRI 3(a); GRI 6

Dear Sir:

This protest concerns the tariff classification of hot- rolled steel sheets under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The entry in question consisted of a shipment of hot-rolled alloyed steel sheets produced from two different heats--heat #31446 and heat #31737. Both were entered under subheading 7226.91.80, HTSUS, which describes other flat-rolled products of alloy steel, of a width of less than 600 mm, not further worked than hot-rolled.

A sample from each of the two heats was provided to the New York Customs Laboratory. The laboratory report for heat #31446 states that this flat metal section of alloyed steel contains 1.09% by weight of chromium, 0.91% by weight of molybdenum and 0.46% by weight of carbon. The laboratory report for heat #31737 states that this flat metal section of alloyed steel contains 1.006% by weight of chromium, 0.86% by weight of molybdenum and 0.41% by weight of carbon.

Based on these laboratory analyses, the sheets were liquidated as follows: (1) the sheets produced from heat #31737 were classified as entered under subheading 7226.91.80, HTSUS;
and (2) the sheets produced from heat #31446 were classified under subheading 7226.91.25, HTSUS [the protest forms inadvertently state that liquidation was made under subheading 7226.91.30], which describes other flat-rolled products of other alloy steel, not further worked than hot-rolled, of tool steel. This protest concerns only the classification of the hot-rolled steel sheets produced at heat #31446.

ISSUE:

Whether the laboratory test performed on one sample of the hot-rolled steel sheets produced at heat #31446 is sufficient to determine classification of those sheets under the HTSUS.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

Heading 7226, HTSUS, provides for "[f]lat-rolled products of other alloy steel, of a width of less than 600 mm." The sheets were entered under subheading 7226.91.80, HTSUS, which describes other flat-rolled products of other alloy steel "[n]ot further worked than hot-rolled . . . [o]ther . . . [o]f a thickness of less than 4.75 mm . . . [o]f a width of less than 300 mm." After laboratory analysis, the sheets were liquidated under subheading 7226.91.25, HTSUS, which describes other flat-rolled products of other alloy steel "[n]ot further worked than hot-rolled . . . [o]f tool steel (other than high-speed steel) . . . [o]ther . . . [o]f a width of less than 300 mm."

The laboratory report revealed that the sample of hot-rolled steel sheet produced at heat #31446 contained 1.09% by weight of chromium and 0.91% by weight of molybdenum. Additional U.S. Note 1(e)(iv) to Chapter 72 states that, for the purposes of the tariff schedule, the term "tool steel" has the following meaning: "[a]lloy steels which contain the following combinations of elements in the quantity by weight respectively indicated . . . 0.9 percent to 1.2 percent, inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, molybdenum." Thus, according to the results of the lab analysis for the sample provided by the protestant to the New York Customs Laboratory, the hot-rolled steel sheets produced from heat #31446 are "of tool steel" for tariff purposes.

The protestant does not dispute the Customs laboratory findings of a molybdenum content of 0.91%. Rather, he questions the classification of an entire heat of steel based on laboratory analysis resulting from one test on one sample. The protestant
also states that the applicable industry specification, ASTM Spec. A 505, allows certain tolerances over or under the specified percentage for each alloying element. Finally, he maintains that the cast analysis (taken from steel in the molten state) is more representative of the composition of the heat than the product or check analysis (taken from steel in the solid or finished product form), which was performed on the sample in question.

The protestant's claim that a test performed on one sample cannot represent the entire shipment and that only the amount of steel represented by the sample (approximately one ounce) should be classified under subheading 7226.91.25, HTSUS, is without merit. The United States Customs Court has held that "[i]t is well settled that the methods of weighing, measuring, and testing merchandise used by customs officers and the results obtained are presumed to be correct." Consolidated Cork Corp. and Milton Snedeker Corp. v. United States, C.D. 2512, pg. 85 (1965). Thus, the Customs laboratory's test on the single sample presented by the protestant, as well as its choice of check analysis over cast analysis, is presumed to be correct for classification purposes.

Finally, the industry specification pertaining to whether the chemical composition of the steel was within the range of acceptability has no bearing on how the product is classified for tariff purposes. For tariff purposes, the sheets produced at heat #31446 are "of tool steel," and, as such, are classifiable under subheading 7226.91.25, HTSUS.

HOLDING:

The hot-rolled steel sheets, produced at heat #31446, are classifiable under subheading 7226.91.25, HTSUS, which provides for "[f]lat-rolled products of other alloy steel, of a width of less than 600 mm . . . [o]ther . . . [n]ot further worked than hot-rolled . . . [o]f tool steel . . . [o]f a width of less than 300 mm." The corresponding rate of duty for articles of this subheading is 11.6% ad valorem.

Accordingly, the protest should be denied in full. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director

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