The tariff classification of Manway Covers from China

N302257 February 5, 2019 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.90.8688; 9903.88.03 Mr. Herbert J. Lynch Sullivan & Lynch, P.C. 800 Turnpike Street, Suite 300 North Andover, MA 01845 RE: The tariff classification of Manway Covers from China Dear Mr. Lynch: In your letter dated December 5, 2018, on behalf of your client W.E. LOTT Company, Inc., you requested a tariff classification ruling. Engineering prints, pictures and specification sheets for the subject Manway Covers were submitted for our review. The articles under consideration are identified as Tank Manway Covers (Part Number 5-U-5231) and are known commercially as Manway Covers. You described the covers as cast articles/castings that are composed of steel or stainless steel. You stated that the “Manways are used to provide access to cargo tanks, storage tanks, storage silos, hoppers and items for the purpose of inspection, cleanout, sampling and filling. Manways provide access to both the stationary and movable storage vessels.” The articles under consideration will be used as covers for Tank Car Manways and can be used for any Manway with an identical gasket diameter. After the cast article is removed from the mold, the casting will be heat-treated and sand blasted to clean off any debris. After the casting is heat-treated and cleaned, a groove will be machined into the casting and it will be tested to verify that it meets specification. After machining and testing, the Manway Cover will be packaged for shipping to the United States. You have proposed classification for the Tank Manway Covers under heading 7325, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other cast articles of iron or steel”. HQ W968382 dated July 21, 2008, stated that “The applicable legal notes and section notes do not provide a definition for ‘cast articles’. Heading 7325, HTSUS, covers all cast articles not elsewhere specified or included in the Nomenclature. Generally, casting is characterized by molten blast furnace iron being bottom poured into a mold. After sufficient time for solidification and cooling, the castings are removed from the mold by a shakeout machine.” HQ 963283 dated May 11, 2000, noted that processes in addition to casting will serve to advance cast articles of 7325, HTSUS, to the point where they are no longer covered by heading 7325. As to what processes are sufficient to advance an item beyond a casting was addressed in HQ 963283 which stated "Customs longstanding position on the issue of advancements to castings is that the casting process is considered complete when, after the casting solidifies and cools, surface imperfections are removed by blast cleaning, chipping, burning or combinations of these processes. Certain independent and additional processes not merely incidental to the general foundry work are considered to advance an article beyond casting." As stated in NY G81782 dated September 25, 2000, “Once the steel casting is further processed…by machine-lathing to specific size and drilling holes, it has been advanced beyond the definition of cast article.” HQ 963283 stated that there was no evidence that machining the platens’ top surface and side edges is merely incidental to the casting process. HQ determined that the platens, processed as indicated, have been advanced beyond castings/cast articles and are classified as other articles of iron or steel provided for in heading 7326, HTSUS. In the instant case, a groove will be machined into the Manway Cover after completion of the casting process and before importation into the United States. Therefore, the machined Manway Covers have been advanced beyond the condition allowed for classification in heading 7325. Thus, the subject Tank Manway Covers would be classified under heading 7326. The applicable subheading for the Tank Manway Covers (Part Number 5-U-5231) will be 7326.90.8688, HTSUS, which provides for other of iron or steel, other, other…other.  The rate of duty will be 2.9 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current. Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS.  The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS.  Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974).  Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheading 7326.90.8688, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 7326.90.8688, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Ann Taub at ann.taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division