Newly Released CBP HQ Ruling Feb. 28
The Customs Rulings Online Search System (CROSS) was updated Feb. 28 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
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H335509: Internal Advice; Application for Further Review of Protest No. 5203-23-100456; Coated and Embossed Aluminum Coils; U.S.-Jordan Free Trade Agreement
| Ruling: The aluminum coil imported into the U.S. isn't eligible for preferential tariff treatment under the JFTA. |
| Issue: Are the imported finished aluminum coils eligible for duty-free treatment under the JFTA? |
| Item: Coated and embossed aluminum coils, described as “pre-painted aluminum coils” on the bills of lading, were imported into the U.S. from Jordan under subheadings 7606.12.30, and 9903.85.01, claiming preferential tariff treatment under the JFTA. The product is a common alloy aluminum sheet for use as sheet metal roofing products installed on buildings and houses. The finished aluminum coils were produced from 3003-H14 aluminum alloy coils in rolls (“raw aluminum coil” or “mother coil”) described as “aluminum coil mill finish, gauge 0.5600 mm x width 1266.80 mm coil” originating from Bahrain and exported to Jordan from Bahrain for further processing. In Jordan, the raw aluminum coils from Bahrain are placed in a coating line and unwound. The coils are cleaned to remove oxide layers, residual lubricant and fine particles by passing them through two alkaline spray cleaning tanks with a brush-scrubbing unit in between. The coils are then chemically treated with a thin coating to prevent the metal surface from reoxidizing and to provide a stable layer for adhesion of subsequent coatings. This coating is then cured by oven-drying at 90 degrees Celsius. For primer, there is one coating per head side. The topcoats require three coating heads on the top and two heads on the bottom. In addition to applying coatings, the supplier applies color pigments to the top coating to meet customer specifications. Finally, the slitting and embossing line cuts the coils to the customer’s desired width and trims the edges. Certain sheets require embossing to make them less susceptible to warping. The coils then pass between two engraved rolls with a special design and structure to press the design of the rolls into the metal coils. These processes create the final coated and painted aluminum coils imported into the U.S. from Jordan. |
| Reason: The processing operations in Jordan did not substantially transform the raw aluminum coil into a new and different article but rather constitute a continuation of the production process leading to the completion of the raw aluminum coil as finished and embossed coil. Therefore, the finished aluminum coil isn't considered a “product of” Jordan and doesn't meet the criteria for JFTA preferential tariff treatment. |
| Ruling Date: Dec. 21, 2023 |