N353262

N353262 September 10, 2025 CLA-2-72:OT:RR:NC:N5:117 CATEGORY: Classification; Country Origin; Trade Agreement TARIFF NO.: 7216.61.0000; 9903.01.24; 9903.01.25; 9903.88.03 Farid Elias Handal TRADEXO LLC 5718 Westheimer Road Houston, TX 77057 RE: The tariff classification, country of origin, marking, and eligibility for preferential tariff treatment under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) Dear Mr. Handal: In your letter dated August 22, 2025, you requested a ruling on the tariff classification, country of origin, marking, and eligibility for preferential tariff treatment under the DR-CAFTA. The products to be imported are ALUZINC nonalloy steel planks for use in fence construction. The planks are coated in Aluminum-Zinc (AZ) and a layer of Regular Modified Polyester (RMP) for corrosion resistance. Each plank measures 70 inches tall by 6.5 inches wide. In your request, you suggest that the steel planks are properly classified under subheading 7308.90.9590, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel: Other: Other: Other: Other: Other. We disagree with this classification and turn to the Explanatory Notes (ENs) of the HTSUS for guidance as to the proper classification of the merchandise concerned. When interpreting and implementing the HTSUS, the ENs of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN 72.16 provides, in pertinent part, as follows: Angles, shapes and sections are defined in Note 1 (n) to this Chapter. The heading includes goods which have been cold-formed or cold finished (by cold-drawing, etc.) and also covers angles, shapes and sections made by forming on a roll type machine or by forming sheets, plates or strip on a press. So-called “ribbed sheets and plates” having an angular profile are also classified here. The products of this heading may have been subjected to working such as drilling, punching or twisting or to surface treatment such as coating, plating or cladding - see Part IV (C) of the General Explanatory Note to this Chapter, provided they do not thereby assume the character of articles or of products falling in other headings. The planks under consideration have been formed into an angular shape by means of a roll forming machine as described in the EN to heading 7216 and have not been prepared for use in a structure. Therefore, it is the opinion of this office that the steel planks are classified in heading 7216, HTSUS. (See New York Ruling N039662 dated October 17, 2008). The applicable subheading for the steel planks will be 7216.61.0000, HTSUS, which provides for Angles, shapes and sections of iron or nonalloy steel: Angles, shapes and sections, not further worked than cold-formed or cold-finished: Obtained from flat-rolled products. The rate of duty will be free. You inquire whether the planks are eligible for preferential duty treatment under the DR-CAFTA. General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials. Based on the facts provided, the subject planks are manufactured in Honduras from nonalloy steel coils from China. As such, the goods are not wholly obtained or produced entirely in the territory of one or more parties to the DR-CAFTA. Therefore, GN 29(b)(i) may be not be used to determine the origin of the finished articles and analysis must continue to GN 29(b)(ii). In order to meet the requirements of GN 29(b)(ii)(A), the goods must be produced entirely in the territory of one or more parties to the DR-CAFTA and each of the non-originating materials used in the manufacture of the goods undergoes an applicable change in tariff classification specified in subdivision (n) of this note. Since we have determined that the subject steel planks are classified in heading 7216, HTSUS, the applicable tariff shift rule for these products is set forth in GN 29(n), Chapter 72, Rule 3, which reads: A change to headings 7208 through 7229 from any other heading. The steel coils from China are classified in heading 7210, HTSUS. Therefore, the tariff shift requirement is not met, and the steel planks are not eligible for preferential treatment under the DR-CAFTA. In addition to DR-CAFTA eligibility, you are requesting a country of origin determination for the subject steel sheets for marking purposes. When determining the country of origin for purposes of applying current trade remedies under Section 301 and International Emergency Economic Powers Act (IEEPA) additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In your letter, you outline a scenario in which nonalloy steel coils are manufactured in China. The steel coils are pre-galvanized and coated with RMP before being shipped to Honduras. In Honduras, the coils undergo slitting, shaping of the rounded head plank, and roll forming. The individual planks are then packaged and shipped to the United States. Based on the facts presented, we find that cutting and pressing the coils into angular steel planks are basically finishing operations of the nonalloy steel coils and do not constitute a substantial transformation in Honduras. Therefore, we find that the country of origin of the steel planks will be China. Please note that subheading 7216.61.0000, HTSUS, is precluded from Section 232 duties. (See U.S. note 16 to subchapter III, 99 (b)(ii)). Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23,

must continue to GN 29(b)(ii). In order to meet the requirements of GN 29(b)(ii)(A), the goods must be produced entirely in the territory of one or more parties to the DR-CAFTA and each of the non-originating materials used in the manufacture of the goods undergoes an applicable change in tariff classification specified in subdivision (n) of this note. 

Since we have determined that the subject steel planks are classified in heading 7216, HTSUS, the applicable tariff shift rule for these products is set forth in GN 29(n), Chapter 72, Rule 3, which reads: A change to headings 7208 through 7229 from any other heading. The steel coils from China are classified in heading 7210, HTSUS. Therefore, the tariff shift requirement is not met, and the steel planks are not eligible for preferential treatment under the DR-CAFTA. In addition to DR-CAFTA eligibility, you are requesting a country of origin determination for the subject steel sheets for marking purposes. When determining the country of origin for purposes of applying current trade remedies under Section 301 and International Emergency Economic Powers Act (IEEPA) additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In your letter, you outline a scenario in which nonalloy steel coils are manufactured in China. The steel coils are pre-galvanized and coated with RMP before being shipped to Honduras. In Honduras, the coils undergo slitting, shaping of the rounded head plank, a