us-cbp-cross-rulings-hq-081491•HQ 081491: Recessed Cold Headed Screw Wire Processed from Hot Rolled Wire Rod
HQ 081491: Recessed Cold Headed Screw Wire Processed from Hot Rolled Wire Rod
us-cbp-cross-rulings-hq-081491HQ 081491: Recessed Cold Headed Screw Wire Processed from Hot Rolled Wire RodGuidance
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 081491
NOV 8, 1989
CLA-2:CO:R:C:G 081491 JAS
CATEGORY: Classification
TARIFF NO.: None
James G. Meagley, Esq.
Phillips, Lytle, Hitchcock, Blaine & Huber
3400 Marine Midland Center
Buffalo, New York 14203
RE: Recessed Cold Headed Screw Wire Processed from
Hot Rolled Wire Rod
Dear Mr. Meagley:
In your letter of December 18, 1987, as supplemented, on
behalf of Robertson-Whitehouse, Milton, Ontario, Canada, you
inquire as to the country of origin of certain drawn and
annealed wire processed in Canada from hot rolled wire rod from
third countries.
There is no issue of tariff classification or eligibility
of the merchandise for a reduced rate of duty under the United
States-Canada Free-Trade Agreement. Our ruling follows.
FACTS:
The wire at issue here is made from medium-low carbon hot
rolled steel wire rod, cold heading quality, conforming to ASTM
specification A-510-77. The round wire rod is 0.218 inch in
diameter and contains the chemical elements required by AISI
specification 1018.
The wire rod arrives in Canada in 2,000 lb. coils. In
Canada, the rod is natural aged in the yard, then either
chemically or mechanically descaled to remove mill scale and
rust. It is then uncoiled and drawn between 4 and 6 times
through progressively smaller tungsten carbide dies into
process wire. It is then spheroidize annealed by heating to a
temperature of 1350 degrees F for 13 hours in a protective
atmosphere of nitrogen and propylene. The annealed wire is
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then said to meet ASTM specification A-548-82 and A-549-82
which provide for a quality of wire required for recessed
screws. The annealed wire is then lubricated and drawn a
second time to make the surface more machinable for the
subsequent cold-heading process used to make a variety of
recessed screws and rivets. Finally, the wire is coiled,
tagged, and stored. This is its condition as imported.
The drawing phase of the processing in Canada is said to
significantly increase the tensile strength of the wire, but
the psi. increase in this case is not stated. The Canadian
processing adds approximately 32 percent to the value of the
hot rolled wire rod and results in a finished wire ranging from
0.103 to 0.164 inches in diameter, with the smallest wires
occasionally being 0.064 inch in diameter. You state this
represents an equivalent reduction in cross-sectional area of
between 69 percent and 93 percent.
ISSUE:
Does the processing in Canada substantially transform the
hot rolled wire rod into a product of Canada for tariff
purposes?
LAW AND ANALYSIS:
In order for the hot rolled wire rod entering Canada to
have been considered substantially transformed there, the
record must establish that the processing in Canada resulted in
a product other than or materially different from the
merchandise that entered Canada. A new and different article
must emerge from the processing, one having a new name,
character or use. Anheuser-Busch Brewing Association v. United
States, 207 U.S. 556 (1908), and related cases.
Spheroidize annealing is a time-consuming, controlled
operation which relieves the stresses of the first draw and
increases ductility to permit further drawing to final
dimensional tolerances. The annealing in this case also
insures optimum machinability as the wire will be further cold
worked by upsetting the ends, a necessary step in making
recessed, cold headed screws. The annealing in this case
dedicates a process wire capable of a variety of uses to a
finished wire having a specific use in the making of recessed,
cold headed screws.
HOLDING:
The cold heading quality wire in issue, which has
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been drawn, spheroidize annealed and further drawn, as
described in the facts, from 0.218 inch hot rolled wire rod, is
substantially transformed in Canada and is a product of that
country for tariff purposes.
Sincerely,
John Durant, Director
Commercial Rulings Division
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