H311162

 HQ H311162 June 13, 2022 OT:RR:CTF:CPMM H311162 CATEGORY: Classification TARIFF NO.: 7307.19.30; 7325.99.10 Port Director U.S. Customs and Border Protection Port of Dallas/Ft. Worth P.O. Box 619050 DFW Airport, TX 75621-9050 RE: Application for Further Review of Protest No. 5501-19-100826; Tariff classification of various types of ductile iron castings including coupling barrels, Powermax barrels, coupling glands, Powermax glands and saddles Dear Port Director: The following is our decision regarding the Application for Further Review (“AFR”) of Protest Number 5501-19-100826, timely filed on December 20, 2019, on behalf of PowerSeal Pipeline Products Corporation (“Protestant” or “PowerSeal”). This AFR concerns U.S. Customs and Border Protection’s (“CBP”) classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of various types of ductile iron castings including coupling barrels, Powermax barrels, coupling glands, Powermax glands and saddles. Additionally, Protestant filed this AFR in regard to the assessment of antidumping duties under the terms of the Antidumping Duty Order covering non-malleable cast iron pipe fittings from the People’s Republic of China in case number A-570-875-000 (“AD Order”). No samples were provided to our office but the Protestant submitted pictures and descriptions of the subject merchandise. FACTS: The protested merchandise consists of various types of ductile iron castings including coupling barrels, Powermax barrels, coupling glands, Powermax glands and saddles, which were imported from the People’s Republic of China. These parts function together to form various types of pipe assemblies including transition couplings, end cap couplings, and reducing couplings. On January 14, 2021, CBP asked the Protestant for additional information regarding the functioning and purpose of the merchandise at issue. The Protestant responded with an additional submission, dated February 11, 2021, where they explained the following: The edge of the barrel tapers from the inner diameter to the rim; this provides a receiving surface for the taper of the gasket (which actually forms the seal with the pipe). The lip of the gland covers the blunt surface of the gasket; when the bolts/nuts are tightened, the glands are drawn together, compressing the gasket and sealing the barrel of the pipe. PowerMax barrels and glands function in the same manner, with the same type of additional parts; however, . . . the PowerMax barrel casting has a noticeable “flare” to its ends which enables it to accept a more robust gasket. Similarly, the PowerMax glands have a heavier lip that fits over the appropriate gasket to contain and compress it when the nuts/bolts are installed and tightened. Upon examination of the photographs and descriptions provided by the Protestant, the barrels appear to be identical to center sleeves and center rings used in coupling assemblies. The procedure for forming a coupling first requires slipping a gasket, then a gland over each pipe, then inserting the pipe ends into the barrel, and finally torquing the bolts/nuts to compress the gasket and seal the assembly. The Protestant noted that in addition to using the protested merchandise in transition couplings, they may be used in other fittings as well: “[f]or example, an additional casting may be added, and the same glands and barrel—whether PowerMax or conventional—then may be used with (with appropriate gaskets and bolts/nuts) to assemble an ‘end cap.’” The same glands may also be combined with other components in “reducing coupling” or “cut-in” applications. According to Powerseal’s website, the purpose of the protested saddles is to “[p]rovide a dependable means of tapping pipe for branch connections and eliminate the need for direct taps reinforcing the critical connection” (emphasis added). See https://www.powerseal.com/Model.aspx?product_id=SADD (last visited April 4, 2021). The Protestant states there is no way that component can fit to or connect pipe. Rather, it is the gasket (not at issue here) that makes the connection to the pipes. Saddles allow for the creation of additional outlets and connections in pipe. The Protestant further explained that a customer can construct a particular assembly by selecting separately priced and inventoried parts, depending on the customer’s particular application. After importation, a given barrel may be assembled with any number of different glands (or the barrel or glands may be sold separately), depending on the needs of the ultimate purchaser. The protestant also stated: “[f]or example, a 6” barrel may be mated with a 6A gland or a 6B gland, each of which accommodates a different gasket size. The Protestant provided photos of constituent parts that may be combined to produce a fitting, along with various glands that may be used with a given size barrel depending on gasket size. Moreover, these individual parts are priced and offered for sale as individual components, as imported. According to the Protestant, the imported castings are “cast, cooled, cleaned of excess material from the casting process, and then they are painted, packed and shipped. In other words, the subject imports are finished articles, as imported.” Accordingly, the Protestant asserts that the protested merchandise are not pipe fittings, but rather are finished castings that constitute merely parts of such fittings. The protested merchandise consists of one (1) entry that was entered at the Port of Dallas/Forth Worth (“Port”) on November 26, 2018, under subheading 7307.19.3085, HTSUSA (“Annotated”) (2019), as “Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: Cast fittings: Other: Ductile fittings: Other: Other,” at a duty rate of 5.6% ad valorem. By Notice of (Proposed) Action, dated June 10, 2019, CBP advised PowerSeal that per its review of information submitted for the entry at issue, “ductile fittings with an inner diameter ranging from ¼” to 6” (threaded/unthreaded), finished/unfinished, regardless of industry or proprietary specifications) are subject to antidumping case A-570-875-000 at the rate of 75.50% antidumping duties. The case deposit is due. . . The above is a ‘proposed’ action, if no response is heard within twenty days, the action will be changed to a ‘taken.’” In its protest submission, PowerSeal states that it responded to the Notice of (Proposed) action on June 29, 2019, and explicitly advised CBP of the importer’s view that the classification at issue was incorrect. However, no change was made based on PowerSeal’s assertions regarding the proper classification. Accordingly, the entry was liquidated on July 19, 2019 as entered. Based on the published scope of the antidumping duty order (“AD order”) for case A-570-875-000, antidumping duties were assessed. See Notice of Antidumping Duty Order: Non-Malleable Cast Iron Pipe Filings from the People’s Republic of China, 68 Fed. Reg. 16,765 (Apr. 7, 2004). PowerSeal filed this Protest and AFR on December 20, 2019, asserting that the subject merchandise is properly classified under subheading 7325.99.1000, HTSUSA (2019), as “Other cast articles of iron or steel: Other: Other: Of cast iron.” They also assert that antidumping duties on certain merchandise pursuant to AD Order A-570-875-000 were improperly assessed “in the absence of an explicit determination by the U.S. Department of Commerce (“Commerce”) as the result of a scope inquiry initiated at the request of CBP that such merchandise is subject to the patently ambiguous scope of the antidumping duty order. ISSUES: Whether various types of ductile iron castings including coupling barrels, Powermax barrels, coupling glands, Powermax glands and saddles are classified under heading 7307, HTSUS, as “Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel”; or under heading 7325, HTSUS, as “Other cast articles of iron or steel”; or under heading 7326, HTSUS, as “Ot

The protest was properly filed as a decision on classification under 19 U.S.C. § 1514(a)(2). The protest was timely filed within 180 days of liquidation of the entries. See 19 U.S.C. § 1514(c)(3).Further Review of Protest Number 5501-19-100826 was properly accorded to Protestant because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of Customs or his designee, or with a decision made at any port with respect to substantially similar merchandise (19 C.F.R. § 174.24(a)), and it involves matters previously ruled upon by the Commissioner of CBP or his designee or by the Customs courts but facts are alleged or legal arguments presented which were not considered at the time of the original ruling (19 C.F.R. § 174.24(c)). Specifically, the Protestant argues that CBP’s liquidation of the protested merchandise in heading 7307, HTSUS, is inconsistent with New York Ruling Letter (“NY”) N118077, dated August 18, 2010; Headquarters Rulings Letter (“HQ”) 967490, dated November 14, 2005; NY J82246, dated April 9, 2003 and NY B85728, dated June 8, 1997, in which CBP classified ductile iron castings either in heading 7325, HTSUS, as other cast articles of iron or steel, or in heading 7326, HTSUS, as other articles of iron or steel. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). 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. GRI 2(a) provides, in relevant part, that “[a]ny 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