**HQ** 967265

> AUGUST 1, 2005

**CLA-2 RR:CTF:TCM** 967265 JAS

**CATEGORY:** Classification

> **TARIFF NO.:** 7208.90.0000/9903.72.60

Port Director

> U.S. Customs and Border Protection

2nd & Chestnut Streets, Rm. 102\
Philadelphia, PA 19106

> **RE**: Protest 1101-04-100162; Hot-rolled steel circles flame cut
> from hot-
>
> rolled plates; 201 steel safeguard duties; Treatment,19 U.S.C.
>
> 1625(c)
>
> Dear Port Director:
>
> This is our decision on Protest 1101-04-1000162, filed by counsel on
> behalf of World Metals Corp., against your classification, under the
> Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of
> certain steel circle blanks for tank heads, and your assessment of
> additional 201 steel safeguard duties.
>
> The goods were entered under a provision of heading 7326, HTSUSA, as
> other articles of iron or steel, forged or stamped, but not further
> worked. They were reclassified as other flat-rolled products of iron
> or nonalloy steel, of a width of 600 mm or more, under a provision of
> heading 7208, HTSUSA, assessed with additional 201 steel safeguard
> duties under subheading 9903.72.60, HTSUS, and the entries liquidated
> on March 12, 2004. This protest was timely filed on May 20, 2004.
>
> Counsel maintains that the correct classification is in subheading
> 7326.90.8587, HTSUSA, as other articles of iron or steel. If this
> claim does not prevail, counsel presents an alternative claim that a
> treatment exists under subheading 7326.19.0000, HTSUSA, which can be
> modified only in accordance with the notice and comment procedure
> outlined in 19 U.S.C. 1625(c).

\- 2 -

**FACTS**:

The merchandise at issue is steel circle blanks, products of Brazil.
They are disc-shaped articles which are oxyacetylene flame cut from
hot-rolled steel plates. After importation, they are heated, then spun
into tank heads for use on pressure vessel tank cars for the rail
industry and general purpose tanks for the conveyance of water, gas,
etc.

The HTSUSA provisions under consideration are as follows:

> **7208** Flat-rolled products of iron or nonalloy steel, of a width
>
> of 600 mm or more, hot-rolled, not clad, plated or coated:
>
> **7208.90.00** Other
>
> **\* \* \* \***

**7326** Other articles of iron or steel:

Forged or stamped, but not further worked:

**7326.19.00** Other

**7326.90** Other:

**7326.90.85** Other articles of iron or steel

**ISSUE**:

Whether the steel circle blanks are flat-rolled products of subheading

7208.90.00; whether a treatment exists for these goods under subheading

7326.19.00.

**LAW AND ANALYSIS**:

Under General Rule of Interpretation (GRI) 1, HTSUA, 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, in part defines [Flat-rolled
products]{.underline} as

rolled products of solid rectangular (other than square) cross section,
which

do not conform to the definition \[of [semi-finished
products]{.underline}\] at (ij) \[above\].

Flat-rolled products of a shape other than rectangular or square, of any
size,

are to be classified as products of a width of 600 or more, provided
that they

do not assume the character of articles or products of other headings.

# CLASSIFICATION

The original determination that the flame cut steel circles were

provided for in subheading 7326.19.0000, HTSUSA, was based on advice

provided to the importer/protestant by U.S. Customs and Border
Protection

(CBP), and was predicated on the belief that the goods were, in fact,
made

by a stamping process in accordance with [Motor Wheel Corp. v.
United]{.underline}

[States]{.underline},19 CIT 385 (1995). In that case, the Court found
that circular or

octagonal shapes cut from flat-rolled steel by an automated cookie
cutter

process sufficiently advanced the flat-rolled steel such that the
resulting

blank, created in a single press stroke, as by a stamp, was distinct
from the

flat-rolled steel and had, in fact, become a stamped article of iron or
steel.

Circles and octagons are shapes that are other than rectangular or
square.

Because subheading 7326.19, HTSUSA, 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 7326.19.0000, HTSUSA.

However, the steel circle blanks at issue here, which are oxyacetylene

flame cut from hot-rolled steel plates, are not produced by a recognized

stamping process and, therefore, are not stamped articles of the type

classifiable in subheading 7326.19.0000, HTSUSA. [See]{.underline} HQ
963255, dated

April 28, 2000, NY I82305, dated June14, 2002, and related cases. The

steel circle blanks remain flat-rolled products of iron or non-alloy
steel,

classifiable in subheading 7208.90.0000, HTSUSA. Goods so classified

are subject to the assessment of additional so-called steel safeguard
duties

("Section 201 Duties") on this merchandise under subheading 9903.72.60,

HTSUS, pursuant to Presidential Proclamation 7529, issued on March 5,

2002 (Federal Register, Vol. 67, No. 45, March 7, 2002).

\- 4 -

# 

# 

# TREATMENT

CBP agrees with counsel that a treatment existed on behalf of World

Metals Inc., with respect to this merchandise under subheading

7326.19.0000, HTSUSA. However, in accordance with 19 U.S.C. 1625(c)

and section 177.12(c), CBP regulations, CBP published a notice in

the June 22, 2005 Customs Bulletin, Vol. 39, No. 26, advising interested

parties of the revocation of this treatment pursuant to HQ 967410, dated

June 6, 2005. Additionally, pursuant to 19 U.S.C. 1625(c)(2), the
treatment

previously accorded by CBP to substantially identical transactions of
other

importers was also revoked.

**HOLDING**:

Under the authority of GRI 1, the flame cut nonalloy steel circles are

provided for in heading 7208. They are classifiable in subheading

7208.90.0000, HTSUSA. The protest should be DENIED as to

classification. However, the protest should be ALLOWED as to the

treatment classifying World Metals Inc., importations of steel circle
blanks

oxyacetylene flame cut from hot rolled steel plates in subheading

7326.10.0000, HTSUSA, entered or withdrawn from warehouse on or before

August 20, 2005.

In accordance with the Protest/Petition Processing Handbook (CIS

HB, January 2002, pp. 18 and 21), you are to mail this decision,
together

with the Customs Form 19, to the protestant no later than 60 days from
the

date of this letter. Any reliquidation of the entry in accordance with
the

decision must be accomplished prior to mailing of the decision. Sixty
days

from the date of the decision the Office of Regulations and Rulings will
make

the decision available to CBP personnel, and to the public on the CBP
Home

Page on the World Wide Web at www.cbp.gov, by means of the Freedom of

Information Act, and other methods of public distribution.

> Sincerely,

Myles B. Harmon, Director

> Commercial and Trade Facilitation Division