[Federal Register Volume 84, Number 128 (Wednesday, July 3, 2019)]
[Notices]
[Pages 31879-31885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14230]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[USCBP-2019-0012]


Notice of Decision on Domestic Interested Party Petition

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Notice of decision on domestic interested party petition.

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SUMMARY: This document provides notice of U.S. Customs and Border 
Protection's (CBP) decision regarding the tariff classification of 
certain steel special profiles for the manufacture of forklift truck 
masts and carriages. On April 3, 2019, CBP published in the Federal 
Register a Notice of Receipt of a Domestic Interested Party Petition, 
regarding the classification, under the Harmonized Tariff Schedule of 
the United States (HTSUS), of the subject steel special profiles. The 
Petition asked CBP to review the classification of these products and 
revoke New York Ruling Letter (NY) N293371, dated February 8, 2018. 
After reviewing 14 comments received in response to the Petition, CBP 
has issued a decision agreeing with Steel of West Virginia, Inc. 
(Petitioner) and revoking NY N293371, supra, as well as NY F83480, 
dated March 13, 2000, which pertained to merchandise substantially 
similar to the subject steel special profiles. This Notice advises 
Petitioner and all interested parties of CBP's determination.

DATES: July 3, 2019.

FOR FURTHER INFORMATION CONTACT: Albena Peters, Chemicals, Petroleum, 
Metals and Miscellaneous Articles Branch, Regulations and Rulings, 
Office of Trade, U.S. Customs and Border Protection at (202) 325-0321.

SUPPLEMENTARY INFORMATION:

Background

    This document concerns the tariff classification of certain steel 
special profiles for the manufacture of forklift truck masts and 
carriages.

Classification of Nonalloy Steel Special Profiles

    Merchandise imported into the customs territory of the United 
States is classified under the HTSUS. The tariff classification of 
merchandise under the HTSUS is governed by the principles set forth in 
the General Rules of Interpretation (GRIs). The GRIs are part of the 
HTSUS and are to be considered statutory provisions of law for all 
purposes. See Section 1204 of the Omnibus Trade and Competitiveness Act 
of 1988, Public Law 100-418 (Aug. 23, 1988); 19 U.S.C. 3004.
    GRI 1 requires that classification be determined first according to 
the terms of the headings of the tariff schedule and any relative 
section or chapter notes and, provided such headings or notes do not 
otherwise require, then according to the other GRIs. See GRI 1, HTSUS 
(2019). GRI 6 prescribes that, for legal purposes, the classification 
of goods in the subheadings of a heading shall be determined according 
to the terms of

[[Page 31880]]

those subheadings and any related subheading notes and, mutatis 
mutandis, according to GRIs 1 to 5, on the understanding that only 
subheadings at the same level are comparable. See GRI 6, HTSUS (2019).
    The Explanatory Notes to the Harmonized Commodity Description and 
Coding System (Harmonized System) represent the official interpretation 
of the World Customs Organization on the scope of each heading. See 
H.R. Conf. Rep. No. 100-576, 100th Cong., 2d Sess. 549 (1988), 
reprinted in 1988 U.S.C.C.A.N. 1547, 1582; Treasury Decision (T.D.) 89-
80, 54 FR 35127, 35128 (August 23, 1989). Although not binding on the 
contracting parties to the Harmonized System Convention or considered 
to be dispositive in the interpretation of the Harmonized System, it is 
CBP's position that the Explanatory Notes should be consulted on the 
proper scope of the Harmonized System. T.D. 89-80, 54 FR at 35128.
    In NY N293371, dated February 8, 2018, the steel special profiles 
are incomplete mast rails and finger bars (also known as carriage bars) 
produced by Mannstaedt GmbH in Germany.\1\ The articles are imported 
either cut to a fixed length in accordance with customer instructions 
or in lengths designed to fit within the transporting cargo container. 
The subject beams and bars are not joined to form the mast weldments in 
their condition as imported. The beams need to be drilled and welded to 
plates and cross bars before acquiring the shape and dimensions 
necessary for assembly into a mast as well as cleaned to prepare them 
for painting. The finger bars must be cut to size and notched in 
specific places along their length depending upon their placement as 
upper or lower bars, as well as cleaned, painted, and welded to the 
actual carriage assembly. CBP previously classified the steel profiles 
in subheading 8431.20.00, HTSUS, as parts suitable for use solely or 
principally with forklifts of heading 8427, HTSUS.
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    \1\ The Petitioner indicated that it believed the subject steel 
special profiles were from the United Kingdom and Germany. It is 
CBP's belief that the steel special profiles covered by NY N293371 
are of German origin; however, the reasoning applicable in the 
attached decision would apply equally to such products of U.K. 
origin (which are at this time also subject to additional duties).
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Filing of Domestic Interested Party Petition

    On October 3, 2018, counsel filed a Petition on behalf of Steel of 
West Virginia, Inc., under section 516, Tariff Act of 1930, as amended 
(19 U.S.C. 1516), requesting that CBP reconsider its decision in NY 
N293371 and classify the subject steel special profiles under 
subheading 7216.50.00, HTSUS, which provides for ``Angles, shapes and 
sections of iron or nonalloy steel: Other angles, shapes and sections, 
not further worked than hot-rolled, hot-drawn or extruded.'' The column 
one, general rate of duty for subheading 7216.50.00 in 2018 and today 
is free. However, on March 8, 2018, pursuant to section 232 of the 
Trade Expansion Act of 1962 (19 U.S.C. 1862), Presidential Proclamation 
9705 (83 FR 11625) imposed additional duties on steel products of 
Germany of subheading 7216.50.00, HTSUS, and steel products of 
subheading 7216.50.00 are currently subject to additional 25 percent 
duties under Subchapter III, Chapter 99, U.S. Note 16(b), HTSUS. 
Importers of such products must also identify subheading 9903.80.01, 
HTSUS, at entry.
    On April 3, 2019, CBP published a Notice of Receipt of a Domestic 
Interested Party Petition in the Federal Register (84 FR 13057). The 
Notice invited written comments on the Petition from interested 
parties. The comment period closed on May 3, 2019. CBP received 14 
comments in response to the Notice. Seven comments reiterated the 
Petitioner's position that the merchandise should be classified in 
subheading 7216.50.00, HTSUS, as other angles, shapes and sections. The 
other seven commenters argued that the profiles should remain 
classified in subheading 8431.20.00, HTSUS, as parts suitable solely or 
principally with forklifts of heading 8427, HTSUS.

Decision on Petition and Notice of CBP's Decision

    After review of the arguments set forth by Petitioner as well as 
those set forth in the responses to the Federal Register Notice, CBP 
has determined that the classification decision in NY N293371 was 
incorrect. In HQ H303762, which is attached to this Notice, CBP has 
granted the Domestic Party Petition and revoked the classification 
determination set forth in NY N293371.
    CBP determined in HQ H303762 that the articles at issue are not 
parts of forklifts. By application of GRIs 1 and 6, the nonalloy steel 
mast beams and finger bars in NY N293371 are steel special profile 
shapes of heading 7216, HTSUS, classified specifically under subheading 
7216.50.00, which provides for angles, shapes and sections of iron or 
nonalloy steel, other angles shapes and sections, not further worked 
than hot-rolled, hot-drawn or extruded. The instant merchandise, 
imported in bundles of beams and bars of various sizes and shapes, is 
described by the term ``angles, shapes, and sections'' set forth in 
note 1(n) to chapter 72, whether or not the product is a standard shape 
or a special shape designed for a particular application such as use in 
a lifting mast for a forklift truck. It is simply the beams necessary 
to compose the weldments that form the inner, intermediate, or outer 
uprights of the completed mast and crossbars, which in turn are used to 
construct a portion of the carriage. While the subject merchandise may 
ultimately be destined for incorporation into a forklift, it is not 
identifiable as such based on its condition as imported.
    Specifically, the beams are not welded to the plates and bars 
necessary to create the shape and dimensions of an inner, intermediate 
or outer weldment of a mast. Similarly, the finger bars are not welded 
to the frame for attachment between the carriage and mast. Without the 
various cuts, notches, drilled holes and welding, which take place 
post-importation, the subject beams and bars do not possess 
characteristics that dedicate them for use in a forklift truck, or even 
for the weldment of the lifting mast or carriage, based on their 
condition as imported.
    In light of the fact that the subject bars and beams do not have 
the approximate size or shape of the forklift mast and carriage, or 
even of the weldment components of the mast and carriage (i.e., they 
are not identifiable as parts of a lifting mast), they cannot be 
considered a part of a forklift or a ``blank'' of a forklift part.

Authority

    This Notice is published in accordance with 19 U.S.C. 1516(b) and 
Section 175.22(a) of the CBP Regulations (19 CFR 175.22(a)).

    Dated: June 28, 2019.
John Sanders,
Chief Operating Officer and Senior Official, Performing the Functions 
and Duties of the Commissioner, U.S. Customs and Border Protection.
HQ H303762
June 28, 2019

OT:RR:CTF:CPMM H303762 APP

CATEGORY: Classification

TARIFF NO.: 7216.50.0000; 9903.80.01

Ms. Tamara Browne
Schagrin Associates
900 Seventh Street N.W., Suite 500
Washington, D.C. 20001
RE: Steel Special Profiles; New York Ruling N293371; 19 U.S.C. Sec.  
1516; 19 C.F.R. Part 175; Domestic Interested Party Petition

[[Page 31881]]

Dear Ms. Browne:
    This letter is in response to the Petition by Domestic Interested 
Party, dated October 2, 2018, filed on behalf of Steel of West 
Virginia, Inc., pursuant to 19 U.S.C. Sec.  1516 and 19 C.F.R. Part 
175. In accordance with 19 C.F.R. Sec.  175.21(a), U.S. Customs and 
Border Protection (``CBP'') published a Notice titled ``Receipt of 
Domestic Interested Party Petition Concerning the Tariff Classification 
of Steel Special Profiles for the Manufacture of Forklift Truck Masts 
and Carriages'' in the Federal Register, Volume 84, Number 64 on April 
3, 2019. The Notice solicited comments, which were due by May 3, 2019. 
We have reviewed all comments and our decision follows.

FACTS:

    The subject of the Petition is the merchandise in New York Ruling 
Letter (``NY'') N293371, dated February 8, 2018, issued to counsel for 
Mannstaedt GmbH. The merchandise in NY N293371 is described as follows:

    The merchandise in question is described as incomplete steel 
mast rails and finger bars. The articles are imported either (1) cut 
to a fixed length in accordance with customer instructions or (2) in 
lengths designed to fit within the transporting cargo container. You 
indicate that, in their condition as imported, the mast rails and 
finger bars are not ready for direct use in fork-lifts. However, the 
imported articles do have the approximate final shapes of the 
finished articles. Each article is said to be ``manufactured to a 
single customer's specifications for use in the lift system of a 
specific fork-lift truck.'' Minor modifications may be made to the 
articles subsequent to importation but the value of such operations 
is said to be estimated substantially lower than the value of the 
actual imported articles.
    The mast rails are the vertical components responsible for 
lifting, lowering and positioning the loads carried by the fork-
lift. The contoured channels in the mast rails are manufactured to 
fit the specific mast guide bearings used in the fork-lifts. The 
finger bars are the crossbars to which the forks of a fork-lift are 
attached. They attach to the mast rails and travel the length of the 
mast rails during the lifting operations.

    A process flow diagram submitted with the ruling request for NY 
N293371 describes the steps in manufacturing the imported ``forklift 
section'' as: purchase, receipt, inspection and transportation of 
blooms to furnace for heating and reheating in preparation for rolling, 
descaling, rolling, hot saw to remove crop ends, saw to straightening 
length, test samples and cool, in line and press straightening, 
detwisting, recut, bundle, weigh and pack for shipment. The control 
plan submitted with the ruling request notes that the product at the 
rolling stage is a ``profile shape'' and the sample size for inspection 
is the ``whole bar.''
    In NY N293371, CBP classified Mannstaedt's mast rails and finger 
bars (also known as carriage bars) in subheading 8431.20.00, Harmonized 
Tariff Schedule of the United States (``HTSUS''), as parts suitable for 
use solely or principally with forklifts of heading 8427, HTSUS. 
Petitioner contends that the proper classification for the steel 
special profiles is under heading 7216, HTSUS, and specifically under 
subheading 7216.50.00, HTSUS, which covers angles, shapes and sections 
of iron or nonalloy steel. The column one, general rate of duty for 
both subheadings is free. On March 8, 2018, pursuant to section 232 of 
the Trade Expansion Act of 1962 (19 U.S.C. Sec.  1862), Presidential 
Proclamation 9705 (83 FR 11625) imposed additional duties on steel 
products of Germany \2\ of subheading 7216.50.00, HTSUS, and steel 
products of this subheading are currently subject to additional 25 
percent duties under subchapter III, chapter 99, U.S. note 16(b), 
HTSUS. Importers of products classified under subheading 7216.50.00, 
HTSUS, must also identify subheading 9903.80.01, HTSUS, at entry. 
Products of subheading 8431.20.00, HTSUS, on the other hand, are not 
subject to section 232 duties.
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    \2\ The Petitioner indicated that it believed the subject steel 
special profiles were from the United Kingdom and Germany. It is 
CBP's belief that the steel special profiles covered by NY N293371 
are of German origin; however, the reasoning applicable in this 
decision would apply equally to such products of U.K. origin (which 
are at this time also subject to additional duties).
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SUMMARY OF COMMENTS:

    In the April 3, 2019 Notice, CBP informed the public of the filing 
of your Petition and invited interested parties to submit comments on 
or before May 3, 2019. During the comment period, CBP received a total 
of 14 comments. Seven comments support Petitioner's position and seven 
comments are opposed to Petitioner's position. Comments were received 
from steel special profiles manufacturers and suppliers, law firms, 
Members of the U.S. Senate and U.S. House of Representatives, unions, 
and local government officials.
    Six commenters in favor of the Petition point out that Petitioner 
and its employees are negatively affected by Mannstaedt's imports from 
Germany and that the United States is deprived of section 232 duties, 
and urge CBP to remedy the situation by reconsidering NY N293371. One 
commenter opposing the Petition states that some of the comments 
politicize tariff classification and disregard tariff classification 
principles.
    All seven commenters opposing the Petition claim that the profiles 
have the shape or outline of finished beams and bars, are intended for 
use as forklift parts at the time of importation and have no other 
practical use, and the processing after importation is minor and 
accounts for a relatively small percentage of the total value of the 
merchandise. They also explain that the imported profiles have non-
standard shapes and are manufactured to the customer's specifications 
and meet the exacting tolerances and quality standards for forklift 
manufacturing.\3\
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    \3\ The seven commenters in opposition to the Petition claim 
that most profiles are cut to length before importation and are not 
straightened; machining/torch cutting creates clearance for a load 
roller and does not materially alter the shape of the profiles; 
drilling and/or welding is a minor process; and that the profiles 
may be subject to surface cleaning operations such as pickling, 
oiling, and shot blasting to prepare them for painting.
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    Two commenters in opposition to the Petition argue that the 
profiles cannot be classified solely based on General Rule of 
Interpretation (``GRI'') 1, and that under GRI 2(a), unfinished parts, 
provided they have the essential character of the finished parts, are 
classified as if they are finished parts. The commenters argue that the 
incomplete mast rails and finger bars have the same form and basic 
structure as the complete beams/bars and should therefore be considered 
``blanks.'' \4\
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    \4\ One commenter requested an opportunity to review exhibits 11 
and 12 that were not released to the public. Members of the public 
may file a Freedom of Information Act (``FOIA'') request at https://www.cbp.gov/site-policy-notices/foia.
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    One commenter states that steel profiles are often made of alloy 
steel and the profiles may be ineligible for heading 7216, HTSUS, which 
applies only to iron and nonalloy steel. However, heading 7228, HTSUS, 
contains the same legal language, ``angles, shapes and sections,'' for 
profiles of ``other alloy steel.'' Therefore, the analysis as to 
whether the instant merchandise is an unfinished part of a forklift 
truck is unaffected whether the rails and bars are made of nonalloy or 
alloy steel, and references to heading 7216, HTSUS, for nonalloy steel 
will include identical merchandise when made of alloy steel of heading 
7228, HTSUS.

ISSUE:

    Whether the subject nonalloy steel mast rails and finger bars are 
classified under heading 7216, HTSUS, as angles, shapes and sections of 
iron or nonalloy steel, or under heading 8431, HTSUS, as

[[Page 31882]]

parts suitable for use solely or principally with forklifts.

LAW AND ANALYSIS:

    Merchandise imported into the United States is classified under the 
HTSUS, in accordance with the GRIs. GRI 1 requires that classification 
be determined first according to the terms of the headings of the 
tariff schedule and any relative section or chapter notes and, unless 
otherwise required, according to the remaining GRIs taken in order. In 
the event that the goods cannot be classified solely on the basis of 
GRI 1, and if the heading and legal notes do not otherwise require, the 
remaining GRIs 2 through 6 may then be applied in order. Pursuant to 
GRI 6, classification at the subheading level uses the same rules, 
mutatis mutandis, as classification at the heading level.
    GRI 2(a) states:

    Any 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 article has 
the essential character of the complete or finished article. It 
shall also include a reference to that article complete or finished 
(or falling to be classified as complete or finished by virtue of 
this rule), entered unassembled or disassembled.

    The HTSUS provisions under consideration are as follows:

7216 Angles, shapes and sections of iron or nonalloy steel:
7216.50.00 Other angles, shapes and sections, not further worked 
than hot-rolled, hot-drawn or extruded
8427 Fork-lifts; other works trucks fitted with lifting or handling 
equipment:
8431 Parts suitable for use solely or principally with the machinery 
of headings 8425 to 8430:
8431.20.00 Of machinery of heading 8427

    Note 1(f) to section XV, HTSUS, states that, ``This section does 
not cover: . . . Articles of section XVI (machinery, mechanical 
appliances and electrical goods).''
    Note 2(b) to section XVI, HTSUS, states that parts that are 
``suitable for use solely or principally with a particular kind of 
machine . . . are to be classified with the machines of that kind or in 
heading . . . 8431 . . . .''
    In interpreting the HTSUS, the Harmonized Commodity Description and 
Coding System Explanatory Notes (``ENs'') may be utilized. The ENs, 
though not dispositive or legally binding, provide commentary on the 
scope of each heading of the HTSUS, and are the official interpretation 
of the Harmonized System at the international level. See T.D. 89-80, 54 
Fed. Reg. 35127, 35128 (August 23, 1989).
    The ENs to GRI 2(a) provide, in relevant part:

    (I) The first part of Rule 2 (a) extends the scope of any 
heading which refers to a particular article to cover not only the 
complete article but also that article incomplete or unfinished, 
provided that, as presented, it has the essential character of the 
complete or finished article.
    (II) The provisions of this Rule also apply to blanks unless 
these are specified in a particular heading. The term ``blank'' 
means an article, not ready for direct use, having the approximate 
shape or outline of the finished article or part, and which can only 
be used, other than in exceptional cases, for completion into the 
finished article or part (e.g., bottle preforms of plastics being 
intermediate products having tubular shape, with one closed end and 
one open end threaded to secure a screw type closure, the portion 
below the threaded end being intended to be expanded to a desired 
size and shape).
    Semi[dash]manufactures not yet having the essential shape of the 
finished articles (such as is generally the case with bars, discs, 
tubes, etc.) are not regarded as ``blanks'' . . . .

    The General ENs to chapter 72, note 1(n) describe angles, shapes, 
and sections of chapter 72 as ``[p]roducts having a uniform solid 
cross[dash]section along their whole length which do not conform to any 
of the definitions at (ij), (k), (l) or (m) above or to the definition 
of wire.''
    EN 72.16 states, in pertinent part, the following:

    Angles, shapes and sections are defined in Note 1 (n) to this 
Chapter.
    The sections most commonly falling in this heading are H, I, T, 
capital omega, Z and U (including channels), obtuse, acute and right 
(L) angles. The corners may be square or rounded, the limbs equal or 
unequal, and the edges may or may not be ``bulbed'' (bulb angles or 
shipbuilding beams).
    Angles, shapes and sections are usually produced by 
hot[dash]rolling, hot[dash]drawing, hot[dash]extrusion or hot-
forging or forging blooms or billets . . . .
    The products of this heading may have been subjected to working 
such as drilling, punching or twisting or to surface treatment such 
as coating, plating or cladding--see Part IV (C) of the General 
Explanatory Note to this Chapter, provided they do not thereby 
assume the character of articles or of products falling in other 
headings.
    The heavier angles, shapes and sections (e.g., girders, beams, 
pillars and joists) are used in the construction of bridges, 
buildings, ships, etc.; lighter products are used in the manufacture 
of agricultural implements, machinery, automobiles, fences, 
furniture, sliding door or curtain tracks, umbrella ribs and 
numerous other articles.

    Petitioner is requesting that CBP reconsider the classification of 
the nonalloy steel mast rails and finger bars described in NY N293371. 
Petitioner contends that the merchandise is merely nonalloy steel 
special profile shapes classifiable under heading 7216, specifically 
under subheading 7216.50.00, HTSUS. Petitioner asserts that the use of 
GRI 2(a) is inappropriate because the merchandise is a semi-
manufactured article, which meets the definition of an angle, shape, or 
section in note 1(n) to chapter 72, HTSUS. Moreover, Petitioner 
contends that the profiles must undergo significant manufacturing after 
importation to create a part suitable for use in the mast or carriage 
of a forklift.
    The instant merchandise, which is imported in bundles of beams and 
bars of various sizes and shapes, is certainly described by the term 
``angles, shapes, and sections'' set forth in note 1(n) to chapter 72, 
whether or not the product is a standard shape or a special shape 
designed for a particular application such as use in a lifting mast for 
a forklift truck. Heading 7216 includes U, I, H, L and T shapes as well 
as ``other'' shapes, such as special profiles of non-standard cross-
section including those used in the manufacture of machinery and 
automobiles. See EN 72.16. In Headquarters Ruling Letter (``HQ'') 
966522, dated December 22, 1994, CBP concluded that, ``it is not 
disputed that . . . S-shaped steel profiles [also known as upper 
carriage bars] are classified in subheading 7216.50.00, HTSUS.'' CBP 
has also classified similar incomplete nonalloy steel profiles in 
subheading 7216.50.00, HTSUS. In NY N295858, dated May 3, 2018; NY 
N295670, dated April 27, 2018; and NY J82683, dated April 18, 2003, CBP 
classified nonalloy steel profiles used in the manufacture of forklift 
truck attachments under subheading 7216.50.00. Like the products at 
issue, the profiles in NY N295858 and NY N295670 were further machined, 
assembled into a frame, and painted after importation.\5\ Similarly, in 
NY I85271, dated September 13, 2002, CBP classified steel beams used in 
construction that did not have the essential character of the finished 
parts in heading 7216, HTSUS.\6\
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    \5\ One commenter points out that in NY J82683, supra, the 
attachments classified under heading 7216, HTSUS, could go on to 
many vehicles; in NY N295670, supra, the frame profiles classified 
under heading 7216, were made into a sliding arm clamp attachment 
not for use as a mast or finger bar after importation; in NY 
N295858, supra, the nonalloy steel profiles classified in heading 
7216, HTSUS, were assembled into a frame, which was later made into 
a clamp attachment not for use as a mast or finger bar. The 
commenter misses the relevance of these rulings to the merchandise 
under consideration. Although not specifically beams or bars for 
masts or finger bars, the merchandise was in a similar state of 
manufacture as the instant merchandise.
    \6\ Two commenters in opposition to the Petition cite to HQ 
965520, dated July 9, 2002, where elevator guide rails, which were 
cut to length, had the same shape as the finished article, and were 
subject to additional processing after importation, were classified 
in heading 8431, HTSUS. Elevator guide rails do not appear to be 
incorporated into a lifting mast but rather are installed in the 
elevator shaft. We are currently reviewing the analysis in HQ 
965520, as well as in NY I81164, dated May 21, 2002, and
    NY A82738, dated May 13, 1996, and intend to initiate a process 
under 19 U.S.C. Sec.  1625 to allow maximum degree of notice.

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[[Page 31883]]

    Accordingly, the merchandise at issue here is classifiable in 
heading 7216, HTSUS, by virtue of being worked, unless it has assumed 
the character of a part of a forklift.
    In defining a ``part'' for tariff classification purposes, the 
courts have fashioned two distinct, but not inconsistent, tests for 
determining whether a particular item qualifies as such. See Bauerhin 
Techs. Ltd. P'ship v. United States, 110 F.3d 774, 778-79 (Fed. Cir. 
1997). Under the first test, articulated in United States v. Willoughby 
Camera Stores, Inc. (``Willoughby''), 21 C.C.P.A. 322, 324, T.D. 46851 
(1933), an imported item is a part only if it is ``something necessary 
to the completion of that article without which the article to which it 
is to be joined, could not function as such article.'' The second test, 
set forth in United States v. Pompeo, 43 C.C.P.A. 9, 14, C.A.D. 602 
(1955), equates ``part'' to ``an imported item dedicated solely for use 
with another article.'' Bauerhin, 110 F.3d at 779 (citing Pompeo, 43 
C.C.P.A. at 13).
    However, before examining whether the goods in question satisfy one 
or both of the aforementioned tests, we note that they only qualify to 
be ``parts'' of the good (a forklift) if they bear a ``direct 
relationship'' to the good, such that the good is the ``primary 
article'' of which the item is a component. See HQ 255855, dated May 
27, 2015. Otherwise, as the Court of International Trade (``CIT'') and 
its predecessor, the Customs Court, have held, the item will be 
considered merely a ``part'' of whatever intermediate part constitutes 
the primary article. See Mitsubishi Elecs. Am. v. United States, 19 CIT 
378, 383 n.3, 882 F. Supp. 171, 175 n.3 (1995) (``[A] subpart of a 
particular part of an article is more specifically provided for as a 
part of the part than as a part of the whole.''); Liebert v. United 
States, 60 Cust. Ct. 677, 686-87, 287 F. Supp. 1008, 1014, Cust. Dec. 
3499 (1968) (holding that parts of clutches, which clutches are in turn 
parts of winches, are more specifically provided for as parts of 
clutches than as parts of winches).
    CBP has consistently adhered to this principle by excluding parts 
of ``primary articles'' from HTSUS ``parts provisions'' where the 
primary articles themselves are parts classifiable in such provisions. 
For example, in HQ H169057, dated September 4, 2014, CBP ruled that a 
front frame designed to reinforce a wind engine, which in turn 
constituted one of two components of a wind generator, could not be 
classified as part of the wind generator itself. Similarly, HQ H005091, 
dated January 24, 2007, excluded from heading 8708, which provides for 
motor vehicle parts, a trunk assembly that constituted one of several 
component parts of an automobile trunk lock. See also HQ 020958, dated 
November 28, 2008; HQ 963325, dated September 15, 2000. In sum, it is 
not enough that an item will eventually form a portion of another 
article. Rather the item must be processed to the point where it is no 
longer recognizable as a profile but instead has the character of a 
finished part.
    In the instant case, finished mast beams and finger bars are 
eventually welded to other components of a forklift mast, a complex 
assembly of interlocking weldments formed of beams, bars, plates and 
tubing containing, rollers, bearings, brackets, chains and pulleys, and 
ultimately a hydraulic ram. For instance, as described by one forklift 
retailer, ``. . . the mast is the vertical assembly on the front of the 
forklift that does the work of raising, lowering, and tilting the load. 
Most masts are `three stage' meaning there are three channels on each 
side. The channels are similar in appearance to I-Beams.'' \7\ Another 
states that, ``The mast is the vertical structure of a forklift that 
provides a supporting pathway for the carriage rollers and allows the 
forklift to raise and lower the forks and material it's carrying''.\8\ 
From these descriptions, it is clear that a vertical lifting mast is 
comprised of much more than beams. The finger bars are horizontal cross 
bars that are components of the carriage assembly and attach to the 
mast beams across the front of the lift truck. The carriage assembly is 
fitted with the forks. Even though the full mast and carriage assembly 
may be classifiable under heading 8431, HTSUS, as a part of a forklift, 
heading 8431, HTSUS, does not cover parts of parts of machines of 
headings 8425 to 8430.
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    \7\ See Mast Types and Their Advantages, https://www.summithandling.com/mast-types-advantages/ (last viewed May 31, 
2019).
    \8\ See Glossary of Forklift Terminology and Definitions, 
https://www.mcfa.com/en/mcfa/resources/glossary-forklift-terminology-definitions (last viewed May 31, 2019).
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    Furthermore, we note that the instant beams and bars are not joined 
to form the mast weldments in their condition as imported. Moreover, 
they do not contain the necessary angular cuts for clearance of the 
rollers, drilled holes for brackets, anchors, and other attachments for 
pulleys and chains. More importantly, they are not welded to the plates 
and bars necessary to create the shape and dimensions of an inner, 
intermediate or outer weldment of a mast. It is the weldments, which 
are assembled to slide smoothly against the rollers and are sold as a 
replaceable part.\9\ Similarly, the finger bars are not welded to the 
frame for attachment between the carriage and mast. Rather, the instant 
merchandise is simply the beams necessary to compose the weldments that 
form the inner, intermediate, or outer uprights of the completed mast 
and crossbars necessary to compose a portion of the carriage.\10\ 
Accordingly, while the subject merchandise may ultimately be destined 
for incorporation into a forklift, it is not identifiable as such based 
on its condition as imported. Indeed, to the extent a weldment 
constitutes a part of a forklift, the profiles have not even assumed 
the character of a weldment.
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    \9\ See Lifting Masts Parts Manuals, http://www.lift-tek.com/support.html?sel=s2 (last viewed May 31, 2019).
    \10\ As the merchandise is fully described by the terms of 
heading 7216, the issue is whether it is excluded from 
classification under note 1(f) to section XV as an article of 
section XVI. Note 1(f), which excludes ``Articles of Section XVI'' 
(emphasis added), does not apply in this case because heading 8431, 
HTSUS, merely covers ``parts'' of forklifts. In this respect, HTSUS 
legal notes that operate to exclude parts of articles (and not just 
the articles themselves) from a given chapter or section explicitly 
indicate as such. For example, in note 3(k) to chapter 71, the 
exclusion specifically identifies ``machinery, mechanical appliances 
or electrical goods, or parts thereof, of Section XVI.'' (Emphasis 
added.) The exclusion note at issue in this case, note 1(f) to 
section XV, is tailored to exclude only articles of section XVI, and 
not their parts, from section XV. See HQ 561353, dated September 19, 
2002. Accordingly, even if the subject steel profile shapes were 
prima facie classifiable under heading 8431, HTSUS, which is not the 
case, the instant beams and bars are not excluded from 
classification under heading 7216 by operation of note 1(f) to 
section XV.

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    Commenters in opposition to the Petition emphasize that a portion 
of the merchandise is cut to a specified customer length and that it is 
imported to customer specification. Initially, the statement itself 
concedes that some portion of the imported merchandise is not cut to a 
specified length for use in the mast assembly. The commenters also do 
not state that the merchandise is cut to the exact length used in the 
creation of the weldments for the mast. In fact, one of the submissions 
shows a picture of ``pre-processing mast rail in the condition as it 
arrives'' which is at

[[Page 31884]]

least three times longer than the rail shown in the adjacent picture of 
``post-processing mast rail'' prior to incorporation into a mast 
assembly.'' Additionally, one commenter notes the angled cut at the top 
of the rail necessary for clearance of the rollers, though the inner 
rail does not require this angled cut because no load roller is 
attached. The commenter also cites to additional drilling and welding 
for the bearing pad attachment and stub shafts for load rollers.
    Commenters in opposition to the Petition also uniformly state that 
the beams seldom need to be straightened after importation. Again, this 
statement thus acknowledges the fact that some beams may need 
straightening or are rejected. All commenters in opposition to the 
Petition agree that the beams need to be drilled and welded to plates 
and cross bars before acquiring the shape and dimensions necessary for 
assembly into a mast as well as subject to surface cleaning operations, 
such as pickling, oiling, and shot blasting, to prepare them for 
painting. Finger bars must be cut to size and notched in specific 
places along their length depending upon their placement as upper or 
lower bars, as well as cleaned, painted, and welded to the actual 
carriage assembly.
    Commenters further state that the merchandise is manufactured to 
tight tolerances. We obtained the invoices for a random entry of the 
merchandise wherein an importer claimed classification in heading 8431, 
HTSUS. Whereas some invoices indicated certain specifications, others 
provided for a range of acceptable characteristics of the imported 
merchandise. This is consistent with the manufacturing process 
described in the original submission for NY N293371, which showed no 
steps beyond those necessary to produce a rail or bar. Hence, 
regardless of whether manufactured to a tight tolerance, without the 
various cuts, notches, drilled holes and most importantly, welding, 
that takes place post-importation, there is nothing that dedicates 
these beams and bars for use solely in a forklift truck, or even for 
the weldment of the lifting mast or carriage, in accordance with 
Bauerhin.\11\
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    \11\ Furthermore, there is nothing about the chemistry of the 
steel used in the profile shapes that dedicates them to a specific 
use. While the particular chemistry of steel may make it stronger, 
harder, more malleable, more brittle or ascribe other physical 
charecteristics to the product, customer specifications for the 
chemistry of the steel do not dedicate the steel to a specific use 
beyond a use that necessitates that particular physical 
characteristic.
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    Commenters opposing the Petition also claim that the merchandise is 
not a part in and of itself, but a blank for a part of a forklift under 
GRI 2(a). The EN excludes semi-manufactures not yet having the shape of 
finished articles, such as bars and rods, from classification as 
unfinished articles under GRI 2(a). See ENs to GRI 2(a), supra. As the 
process and control documents submitted with the ruling request for NY 
293371 state, the profiles and bars in their condition as imported are 
just that: beams and bars. They certainly do not have the shape of the 
finished forklift part, namely the mast or carriage. Indeed, the 
process and control documents initially submitted for NY 293371 
referred to the products as profiles and bars.
    Additionally, we find that the example listed in the EN is 
particularly instructive to understand the meaning of the term 
``blank.'' The bottle preforms have the tubular shape of a bottle, with 
one closed and one open end. The threads at the open end of the preform 
that identify the tubular shape as one which will only be fashioned 
into a bottle are already formed. By contrast, the process in creating 
a lifting mast and carriage using the imported beams and bars requires 
significant processing to dedicate their shape to use in a forklift 
mast or bar carriage. The threads on the bottle preform are like the 
notching, welding, drilling or cutting that must be performed on the 
instant beams and bars. The tubular shape specifically with one open 
and one closed end forms the shape that needs only be expanded to form 
a bottle. Here, a significant amount of welding to other metal profiles 
and plates must be performed in order to create the shape of the object 
that is incorporated into the mast or carriage. The bars and beams do 
not have the approximate size or shape of the forklift mast and 
carriage, or even of the weldment components of the mast and carriage. 
As such, the instant merchandise cannot be considered a blank of a part 
for a lifting mast for a forklift.
    Therefore, we concur with Petitioner that by application of GRIs 1 
and 6, the nonalloy steel mast beams and finger bars in NY N293371 are 
steel special profile shapes of heading 7216, HTSUS, classified 
specifically under subheading 7216.50.00, which provides for angles, 
shapes and sections of iron or nonalloy steel, other angles shapes and 
sections not further worked than hot-rolled, hot-drawn or extruded.\12\
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    \12\ One commenter cites to NY F83480, dated March 13, 2000, 
which also involves lifting mast rails. There, the rails had been 
cut to length, notched, milled, and drilled with holes for assembly 
into single or multi-stage forklift masts. However, as the 
merchandise in that ruling had not been welded into the shape of an 
inner or outer mast for incorporation into the mast assembly, the 
merchandise is substantially similar to the instant merchandise in 
ways material to the determination here. Hence, NY F83480 is also 
revoked by this decision.
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HOLDING:

    Your Petition is granted. By application of GRIs 1 and 6, the 
instant nonalloy steel special profiles are classified in heading 7216, 
HTSUS, specifically in subheading 7216.50.00, HTSUS, which provides for 
``Angles, shapes and sections of iron or nonalloy steel: Other angles, 
shapes and sections, not further worked than hot-rolled, hot-drawn or 
extruded.'' The 2019 column one, general rate of duty is free.\13\
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    \13\ Rails and bars of alloy steel are classified under heading 
7228, HTSUS, specifically under subheading 7228.70.3041 and 
subheading 7228.70.3081, HTSUSA. Subheading 7228.70.3041, HTSUSA, 
provides for: Other bars and rods of other alloy steel; angles, 
shapes and sections, of other alloy steel; hollow drill bars and 
rods, of alloy or nonalloy steel: Angles, shapes and sections: Hot-
rolled, not drilled, not punched and not otherwise advanced: Other: 
With a maximum cross-sectional dimension of 76 mm or more: Other.'' 
Subheading 7228.70.3081, HTSUSA, provides for: Other bars and rods 
of other alloy steel; angles, shapes and sections, of other alloy 
steel; hollow drill bars and rods, of alloy or nonalloy steel: 
Angles, shapes and sections: Hot-rolled, not drilled, not punched 
and not otherwise advanced: Other: With a maximum cross-sectional 
dimension of less than 76 mm: Other.'' The 2019 column one, general 
rate of duty for both subheadings is free. See Subchapter III, 
chapter 99, U.S. note 16, HTSUS, for additional duties that apply.
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    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 at https://hts.usitc.gov/current.
    The steel special profiles from Germany \14\ are currently subject 
to 25 percent ad valorem section 232 duties under subheading 
9903.80.01, HTSUS, pursuant to subchapter III, chapter 99, U.S. note 
16(b).
---------------------------------------------------------------------------

    \14\ See supra note 1, at 2.
---------------------------------------------------------------------------

    Section 232 remedies are based on the country of origin. At the 
time of importation, the importer must report the chapter 99 subheading 
applicable to the product classification in addition to the chapter 72 
subheading listed above. The relevant Proclamations are subject to 
periodic amendment of the exclusions, so the importer should exercise 
reasonable care in monitoring the status of goods covered by the 
Proclamations and the applicable chapter 99 subheadings.
    Please be advised that the steel special profiles may be subject to 
antidumping and countervailing duties (``ADD/CVD''). We note that the 
U.S. Department of Commerce is not necessarily bound by a country of 
origin or classification determination issued by CBP, with regard to 
the scope of ADD/

[[Page 31885]]

CVD orders. Written decisions regarding the scope of ADD/CVD orders are 
issued by the Import Administration in the Department of Commerce and 
are separate from tariff classification and origin rulings issued by 
CBP. The Import Administration can be contacted at http://www.trade.gov/ia/ (see Contact Information). A list of current ADD/CVD 
cases at the U.S. International Trade Commission can be viewed on its 
website at http://www.usitc.gov (click on ``Import Injury'' and then 
``Antidumping and Countervailing Duty Investigations''). ADD/CVD 
deposit and liquidation messages can be searched using ACE, the system 
of record for ADD/CVD messages, or the ADD/CVD Search tool, at http://adcvd.cbp.dhs.gov/adcvdweb/.

EFFECT ON OTHER RULINGS:

    NY N293371, dated February 8, 2018, is hereby revoked. CBP is also 
revoking or modifying any other rulings involving substantially 
identical merchandise, such as NY F83480 (mast rails), see supra note 
11, at 10, to reflect the analysis contained in this decision. Pursuant 
to 19 U.S.C. Sec.  1516(b) and 19 C.F.R. Sec.  175.22, this constitutes 
CBP's decision and it will be published in the Federal Register and the 
Customs Bulletin.

    Sincerely,

Myles B. Harmon,
Director, Commercial and Trade Facilitation Division.
[FR Doc. 2019-14230 Filed 7-2-19; 8:45 am]
 BILLING CODE 9111-14-P