HQ 082330: Classification and Duty Drawback on Stainless Steel Sheet in Coils

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                       HQ 082330

                                  September 19, 1988




            CLA-2:CO:R:C:G  082330 JAS

            CATEGORY: Classification

            TARIFF NO.: 607.9020; 7219.32.0010

            John R. Pope
            William M. Orr Company, Inc.
            2600 Freedland Road
            West Middlesex, Pennsylvania 16159

            RE:  Classification and Duty Drawback on Stainless Steel Sheet
                 in Coils

            Dear Mr. Pope:

                 In your letter of May 18, 1988, you inquire as to the
            tariff classification and applicability for duty drawback of
            stainless steel sheet in coil.

            FACTS:

                 Stainless steel sheet in coil form, from the U.K., Mexico
            or Canada, is the subject of this inquiry.  You informed us by
            telephone that the merchandise is a cold rolled stainless
            product imported in 36, 42, 48, and 60 in. widths.  It has a
            maximum thickness of 0.135 in. and a minimum thickness of 0.015
            in.  This merchandise will be exported from Canada to your
            facility where it will be uncoiled, leveled or flattened, and
            cut to sheet metal lengths of 120 in. to 144 in. or more.
            Alternatively, the product will be uncoiled and slit to smaller
            widths, then re-coiled.  In both cases, the merchandise will be
            exported to Canada after processing and warehoused for eventual
            sale to end users.

            ISSUE(S):

                 Is the imported merchandise classifiable as a basic shape
            or form of iron or steel?  Is it eligible for duty drawback,
            or may it enter free of duty under bond?

















                                        - 2 -

            LAW AND ANALYSIS:

                 For tariff purposes, sheets are flat rolled products
            whether or not corrugated or crimped, in coils or cut to
            length, under 0.1875 inch in thickness and over 12 inches in
            width.  Note the definition of Plates and sheets in Schedule 6,
            Part 2, Subpart B, Headnote 3(g), Tariff Schedules of the
            United States (TSUS).

                 In its condition as imported, the merchandise in question
            is classifiable under the provision for plates and sheets of
            stainless steel, pickled or cold rolled, in item 607.9020,
            Tariff Schedules of the United States Annotated (TSUSA),
            dutiable at the rate of 10 percent ad valorem, plus additional
            cumulative duties on the alloying elements, by weight, speci-
            fied in Schedule 6, Part 2, Subpart B, Headnote 4, TSUS.

                 There is insufficient information to issue a binding
            ruling on whether the cutting or slitting operations would
            qualify the product for drawback.  It is unlikely that the cut
            or slit steel could be considered to be in the same condition
            as imported because cutting and slitting are beyond the
            incidental  operations allowable under 19 U.S.C. 1313(j).
            While the cutting and slitting change the condition of the
            steel, neither operation appears to be a manufacture or
            production, as required for eligibility for manufacturing
            drawback under 19 U.S.C. 1313(a).  In order to be a manufacture
            or production for drawback purposes, a new article must result,
            one having a new name, use, or characteristic.

                 However, articles to be repaired, altered, or processed
            (including processes which result in articles manufactured in
            the United States), may be eligible for duty-free entry under
            bond, in item 864.05, TSUS, upon compliance with applicable
            headnotes in Schedule 8, Part 5, Subpart C, TSUS.

            HOLDING:

                 The stainless steel sheets in coil are classifiable in
            item 607.9020, TSUSA, as indicated.

                 The Harmonized Tariff Schedule of the United States
            Annotated (HTSUSA), is scheduled to replace the TSUS as the
            tariff code of the United States on January 1, 1989.  The


















                                     - 3 -

            HTSUSA provision applicable to stainless steel sheets in coil
            form is Flat-rolled products of stainless steel, not further
            worked than cold-rolled, in subheading 7219.32.0010 if of a
            thickness of 3 mm or more but less than 4.75 mm; in subheading
            7219.33.0010 if of a thickness exceeding 1 mm but less than 3
            mm; or in subheading 7219.34.0010 if of a thickness of 0.5 mm
            or more but not exceeding 1 mm.  Merchandise classifiable in
            these subheadings may be subject to an additional duty under
            subheading 9903.72.00.  This represents Customs current
            position on the classification of this merchandise.  However,
            if there are changes in these provisions prior to the date the
            HTSUSA becomes effective, this advice may not continue to
            apply.

                 Merchandise from Mexico and the U.K. classifiable in item
            607.9020, TSUSA, may be covered by steel arrangements the
            United States has with those countries.  We are referring a
            copy of your letter, and this response, to the International
            Trade Administration, Import Administration, Office of Agree-
            ments Compliance, Department of Commerce, Washington, D.C.
            20230.  That office will correspond directly with you in this
            regard.

                 The stainless steel sheets in coil may be eligible for
            entry free of duty under bond, in item 864.05, TSUS, upon
            compliance with the applicable headnotes.  If this merchandise
            is covered by a steel arrangement, an export certificate will
            be required at the time of entry.  The described processing
            operations in the United States will not result in a substan-
            tial transformation of the imported merchandise.  Therefore,
            assuming the requirements for entry under item 864.05 are met,
            upon satisfactory proof of exportation to Canada you may apply
            to have the quantity exported recredited to your allocation
            under the particular steel arrangement.  The Office of Agree-
            ments Compliance will provide more information on this pro-
            cedure.

                 We are enclosing for your reference materials on Customs
            drawback and temporary importation under bond (T.I.B.)
            procedures, as well as copies of all cited provisions.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division

            Enclosures