Circles Cut From Cold-Rolled Stainless Steel Sheet

HQ 963255 APRIL 28, 2000 CLA-2 RR:CR:GC 963255 JAS CATEGORY: Classification TARIFF NO.: 7219.90.00 Lewis E. Leibowitz Hogan & Hartson L.L.P 555 Thirteenth Street, N.W. Washington, D.C. 20004-1109 RE: Circles Cut From Cold-Rolled Stainless Steel Sheet Dear Mr. Leibowitz: Your letter to the Director of Customs National Commodity Specialist Division, New York, dated August 23, 1999, on behalf of Mexinox U.S.A., Inc., concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS), of circles cut from cold-rolled stainless steel in coils, has been referred to this office for reply. In NY E86067, dated September 24, 1999, similar circles produced from cold-rolled stainless steel in coils by stamping using a “Fagor Press” were held to be classifiable in subheading 7326.19.00, HTSUS, as other articles of iron or steel, forged or stamped but not further worked. As you know, ruling letters issued under the authority of Part 177 of the Customs Regulations (19 CFR Part 177) relate to prospective transactions. You have indicated that the merchandise is currently being imported through the port of Brownsville, TX, and that the importations are ongoing. Section 177.5, Customs Regulations, requires that you notify the port of Brownsville that this ruling request is pending at Headquarters. We will provide Customs officials at this port with a copy of the ruling we issue in the matter for their information and guidance. FACTS: The articles at issue are flat, circular discs with a solid rectangular cross-section, from 9.45 to 29.53 inches in diameter, and 0.016 to 0.063 inch in thickness. Hot-rolled stainless steel sheet in coils, of various American Iron and Steel Institute (AISI) grades, is first subjected to a multi-step cold reduction process. Square sheets are then cut from the coil after which a device called a “Bombled Circular Cutter” cuts out individual - 2 - circles. This is their condition as imported. You indicate that although the circles at issue are generally produced to customer specifications regarding steel grade, surface finish and dimensions, their final end use cannot be identified at importation. Possible end uses include cooking ware, beer kegs, wheel covers and drawn cylinders. You contend that the circles meet the Chapter 72, Note 1(k), HTSUS, definition for Flat-rolled products. As such, they are provided for in heading 7219, HTSUS, as flat-rolled products of stainless steel, of a width of 600 mm or more. In addition, as semi-manufactures not yet having the essential shape of finished articles, they have not assumed the character of articles of other headings, i.e., heading 7326. Also, under General Rule of Interpretation (GRI) 3(a), HTSUS, heading 7219 is more specific than heading 7326, HTSUS, which provides for other articles of iron or steel. The HTSUS provisions under consideration are as follows: Flat-rolled products of stainless steel, of a width of 600 mm or more: Not further worked than cold-rolled (cold-reduced): Other * * * * 7326 Other articles of iron or steel Forged or stamped, but not further worked: 7326.19.00 Other ISSUE: Whether circles cut from flat-rolled stainless steel in coils are provided for in heading 7219. LAW AND ANALYSIS: Under General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), goods are to be classified 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. - 3 - Chapter 72, Note 1(k), HTSUS, defines Flat-rolled products in part as rolled products of solid rectangular (other than square) cross section, and include flat-rolled products of a shape other than rectangular or square, of any size, provided that they do not assume the character of articles or products of other headings. Circles and octagons are shapes that are other than rectangular or square. However, in Motor Wheel Corp. v. United States, 19 CIT 385 (1995), the Court of International Trade found that steel in circular shapes cut from flat-rolled other alloy steel of heading 7208, HTSUS, by an automated cookie cutter process, constituted a stamping made from flat-rolled other alloy steel. Because subheading 7326.19, HTSUS, includes the phrase “forged or stamped, but not further worked,” the Court held that the circular shapes had assumed the character of goods of another heading and were classifiable as other articles of iron or steel, forged or stamped, but not further worked, in subheading 7326.19.00, HTSUS. In our opinion, because the steel circles at issue are produced by a type of circular cutting operation, and not by a recognized stamping operation, they have not assumed the character of articles of another heading, and are not covered by the decision in Motor Wheel. The circles remain flat-rolled products of stainless steel, of heading 7219. HOLDING: Under the authority of GRI 1, the steel circles produced from flat-rolled stainless steel in coils by a Bombled Circular Cutter is provided for in heading 7219. It is classifiable in subheading 7219.90.00, HTSUS. Sincerely, John Durant, Director Commercial Rulings Division