CBP Rules That US Steel Imported From Mexico After Treatments Not Subject to Section 232 Tariffs

Steel tubing made in the U.S. that is sent to Mexico for painting and other treatments and then returned to the U.S is not subject to the Section 232 tariffs, CBP said in a July 31 ruling. The ruling, NY N298549, was requested by customs broker Alex Romero on behalf of Merchant Metals. The request focused on "the country of origin of steel tubing/pipe for use as fence posts in ornamental fence panels," CBP said.

The raw tubing is classified in subheading 7306.61.5000 as "other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel, other, welded, of noncircular cross section, of square or rectangular cross section, having a wall thickness of less than 4 mm, of iron or nonalloy steel." Because the goods don't satisfy the tariff shift rule when returned to the U.S., "the country of origin of the good would be the country of the single material that imparts the essential character to the good," CBP said.

The raw pipe imparts the essential character of the good, CBP said. Therefore, the country of origin for the imported finished pipe is the country of origin for the raw pipe, the agency said. "In this particular case, it would be the United States, and therefore in our opinion the tubing is not subject to Section 232 duties," CBP said.