March 29, 2006 CBP Bulletin Notice on Steel Tubes Prepared for Use as Fence Posts
In the March 29, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 14), CBP issued a notice proposing to modify a classification ruling on steel tubes prepared for use as fence posts. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
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CBP states that any party who has received an interpretive ruling or decision on merchandise subject to this notice, and/or any person involved in substantially identical transactions should advise CBP by April 28, 2006, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
CBP also states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Proposed Modification of a Classification Ruling
Steel tubes prepared for use as fence posts. At issue are welded galvanized steel tubes ranging from 1 and 1/3 inches to 2 and 3/8 inches in diameter, from 0.035 inch to 0.322 inch in wall thickness and from 5 feet to 24 feet in length. These steel tubes are used as posts and are swaged on one or both ends to permit one tube to fit inside another tube.
CBP is proposing to issue HQ 968133 in order to modify NY J81431 and reclassify the steel tubes under HTS 7308.90.9590 as tubes and the like, prepared for use in structures, of iron and steel; rather than under 7326.90.8587 as other articles of iron or steel.
In NY J81431, the subject steel tubes' classification was based in part on the fact that fence posts are listed among the exemplars in the Harmonized Commodity Description and Explanatory Notes (ENs) for heading 7326. Nevertheless, CBP explains that heading 7326 covers all articles of iron or steel that are not covered more specifically in the preceding headings of Chapter 73 or elsewhere.
CBP finds that it is appropriate, therefore, to examine the issue of whether steel tubes with one or both ends swaged are tubes and the like prepared for use in structures, provided for in heading 7308.
The 73.08 EN includes within the heading as structures and parts of structures "assembled railings and fencing." Additionally, ENs to heading 7308 state that the heading also covers parts such as flat-rolled products, 'wide flats' including so-called universal plates, strip, rods, angles, shapes, sections and tubes, which have been prepared (e.g., drilled, bent, or notched) for use in structures.
CBP explains that swaging one or both ends of galvanized steel tubes creates a taper which permits one tube to slide inside and connect to another tube. In CBP's opinion, the swaging "prepares" the tubes for use as fence posts and top rails to support steel fencing-such tubes are provided for as parts in heading 7308.
Therefore, it is now CBP's position that the steel tubes should be classified under HTS heading 7308 rather than 7326.
proposed: HTS 7308.90.9590, duty-free; current: 7326.90.8587, 2.9%.
March 29, 2006 CBP Bulletin (Vol. 40, No. 14) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_03292006_no14/