H304529

 HQ H304529 July 15, 2024 OT:RR:CTF:CPMMA H304529 TJD CATEGORY: Classification TARIFF NO.: 7216.50.00; 7216.99.00 Mr. John B. Pellegrini, Esq. McGuireWoods 1251 Avenue of The Americas 20th Floor New York, NY 10020-1104 RE: Revocation of HQ 965520 and NY 898929; Tariff classification of Steel T-sections Dear Mr. Pellegrini: This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered Headquarters’ Ruling Letter (“HQ”) 965520, dated July 9, 2002 (issued to Yamato Kogyo (USA) Corporation), and New York Ruling Letter (“NY”) 898929, dated July 6, 1994 (issued to Tricoastal Industries, Inc.), regarding the tariff classification of steel T-sections under the Harmonized Tariff Schedule of the United States (“HTSUS”). In HQ 965520 and NY 898929, CBP classified the T-sections in heading 8431, HTSUS, specifically in subheading 8431.31.00, HTSUS, which provides for “parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8428: Of passenger or freight elevators other than continuous action, skip hoists or escalators.” We have determined that the two CBP rulings are in error and that the correct tariff classification is in heading 7216, HTSUS, specifically under subheading 7216.50.00, HTSUS, which provides for “Angles, shapes and sections of iron or nonalloy steel: Other angles, shapes and sections, not further worked than hot-rolled, hot-drawn or extruded.” Accordingly, for the reasons set forth below, we hereby revoke HQ 965520 and NY 898929. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice of the proposed action was published in the Customs Bulletin, Volume 55, No. 51, on December 29, 2021. One comment, which is addressed below, was received in response to this notice. FACTS: HQ 965520 describes the subject non-alloy steel T-sections as follows: The merchandise … is six types of elevator guide rails: EG 8K, EG 13K, EG 18K, EG 24K, EG 30K and EG 50K. The merchandise consists of T-shaped sections of hot-rolled, non-alloy steel. The guide rails will be imported in various dimensions (height and width) but in a single standard length of 16,437 feet … [sic] The merchandise is used to guide elevator cars as they travel up and down the elevator shaft. The merchandise will be sold in its condition as imported with minor modifications … [sic] As imported, the articles are cut to length and essentially have the same shape as the finished article. The imported articles have no practical use other than as elevator rail guides. [T]he post-importation modifications will consist of the following: creating a notch in one side of the guide; creating a groove along the opposite side; boring eight bolt holes in the bottom; chamfering the bolt holes; machining the top to adjust the dimensions; and machining to smooth the sides of the vertical runner. NY 898929 describes the low carbon steel T-sections as follows: Elevator guide rails are T-shaped rails used to guide elevator cars as they travel up and down the elevator shaftway. The merchandise in question will be imported in two conditions - unfinished and finished. In the finished condition, a hot rolled “T” section of ordinary low carbon structural steel has undergone processing prior to importation to produce an article to be solely used as an elevator guide rail. Processing includes machining operations such as straightening, planing [sic], and milling and painting to prevent rust. The rails weigh from 8 to 30 pounds per foot. Lengths vary from 10 to 20 feet depending upon customer specifications but are generally 16 feet for most applications. ISSUE: Whether the subject steel T-sections are classifiable in heading 7216, HTSUS, as angles, shapes and sections of nonalloy steel; or heading 8431, HTSUS, as parts suitable for use solely or principally with elevators. LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. GRI 2(a) states: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. The 2024 HTSUS provisions under consideration are as follows: 7216 Angles, shapes and sections of iron or nonalloy steel: 7216.50.00 Other angles, shapes and sections, not further worked than hot-rolled, hot-drawn or extruded Other: 7216.99.00 Other 8428 Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics) 8431 Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8428: 8431.31.00 Of passenger or freight elevators other than continuous action, skip hoists or escalators Note 1(f) to section XV, HTSUS, states that, “[t]his section does not cover: … Articles of section XVI (machinery, mechanical appliances and electrical goods).” Note 2(b) to section XVI, HTSUS, states that parts that are “suitable for use solely or principally with a particular kind of machine … are to be classified with the machines of that kind or in heading … 84.31 ….” Note 1(n) to chapter 72, HTSUS, describe angles, shapes, and sections of chapter 72 as “[p]roducts having a uniform solid crosssection along their whole length which do not conform to any of the definitions at (ij), (k), (l) or (m) above or to the definition of wire.” Additional U.S. note 2 to chapter 72 provides, in pertinent part: For the purposes of this chapter, unless the context provides otherwise, the term “further worked” refers to products subjected to any of the following surface treatments: polishing and burnishing; artificial oxidation; chemical surface treatments such as phosphatizing, oxalating and borating; coating with metal; coating with nonmetallic substances (e.g., enameling, varnishing, lacquering, painting, coating with plastics materials); or cladding. The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to consult, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89–80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). The ENs to GRI 2(a) provide, in relevant part: (I) The first part of Rule 2 (a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article. (II) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term “blank” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can on

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. GRI 2(a) states:Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.The 2024 HTSUS provisions under consideration are as follows:7216 Angles, shapes and sections of iron or nonalloy steel:7216.50.00 Other angles, shapes and sections, not further worked than hot-rolled, hot-drawn or extruded Other:7216.99.00 Other8428 Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics)8431 Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8428:8431.31.00 Of passenger or freight elevators other than continuous action, skip hoists or escalators Note 1(f) to section XV, HTSUS, states that, “[t]his section does not cover: … Articles of section XVI (machinery, mechanical appliances and electrical goods).” Note 2(b) to section XVI, HTSUS, states that parts that are “suitable for use solely or principally with a particular kind of machine … are to be classified with the machines of tha