CBP Gets Petition Seeking to Revise Classification for Inclusion in Section 232 Tariffs

Steel of West Virginia submitted a petition to CBP asking it to reclassify steel parts so that the parts face Section 232 tariffs upon import, CBP said in a notice. The petitioner, which makes steel shapes for sale to forklift truck operators, seeks a new classification for “incomplete steel mast rails and finger bars,” the agency. Specifically, the parts should be classified in subheading 7216.50.00, which covers “Angles, shapes and sections of iron or nonalloy steel: Other angles, shapes and sections, not further worked than hot-rolled, hotdrawn or extruded.” That subheading is duty-free but is covered by the Section 232 tariffs.

CBP classified the goods from Germany in a Feb. 8, 2018 ruling in the duty-free subheading 8431.20.0000, which provides for “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8427.” That subheading isn't covered by the Section 232 tariffs. The West Virginia company argues that CBP improperly applied General Rule of Interpretation (GRI) 2(a) to classify the goods. The imports do "not have the essential character of a forklift part and cannot be classified as such," the company said.

Steel of West Virginia also cited other CBP rulings in which "CBP did find the steel special profiles to be classified in heading 8431, [Harmonized Tariff Schedule of the U.S.], as parts of forklifts, by application of GRI 2(a).” Instead, the other rulings classified special steel profiles "which had yet to be machined, assembled into a frame and painted after importation, in heading 7216," it said. The company said that the products lack the essential character of forklift parts and require "extensive further manufacturing after importation." Comments on the petition are due May 3.

(Federal Register 04/03/19)