81_FR_6906 81 FR 6880 - Receipt of Domestic Interested Party Petition Concerning the Tariff Classification of a Steel Tube Fitting

81 FR 6880 - Receipt of Domestic Interested Party Petition Concerning the Tariff Classification of a Steel Tube Fitting

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 81, Issue 26 (February 9, 2016)

Page Range6880-6882
FR Document2016-02555

U.S. Customs and Border Protection (CBP) has received a petition submitted on behalf of a domestic interested party requesting the reclassification under the Harmonized Tariff Schedule of the United States (HTSUS) of a steel tube fitting from Taiwan. CBP classified the steel tube fitting under subheading 7307.99.50, HTSUS, which provides for: ``Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: Other: Other: Other.'' The 2015 column one, general rate of duty is 4.3 percent ad valorem. Petitioner contends that the proper classification for the steel tube fitting is under subheading 8412.90.90, HTSUS, which provides for: ``Other engines and motors, and parts thereof: Parts: Other.'' Petitioner asserts that some of its competitors are classifying all or a substantial portion of similar fittings as parts of hydraulic systems, under subheading 8412.90.90, HTSUS, which is duty free, thus placing Petitioner at a competitive disadvantage. This document invites comments with regard to the correctness of the current classification.

Federal Register, Volume 81 Issue 26 (Tuesday, February 9, 2016) 
[Federal Register Volume 81, Number 26 (Tuesday, February 9, 2016)]
[Notices]
[Pages 6880-6882]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-02555]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[USCBP-2016-0007]


Receipt of Domestic Interested Party Petition Concerning the 
Tariff Classification of a Steel Tube Fitting

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

ACTION: Notice; solicitation of comments.

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SUMMARY: U.S. Customs and Border Protection (CBP) has received a 
petition submitted on behalf of a domestic interested party requesting 
the reclassification under the Harmonized Tariff Schedule of the United 
States (HTSUS) of a steel tube fitting from Taiwan. CBP classified the 
steel tube fitting under subheading 7307.99.50, HTSUS, which provides 
for: ``Tube or pipe fittings (for example, couplings, elbows, sleeves), 
of iron or steel: Other: Other: Other.'' The 2015 column one, general 
rate of duty is 4.3 percent ad valorem. Petitioner contends that the 
proper classification for the steel tube fitting is under subheading 
8412.90.90, HTSUS, which provides for: ``Other engines and motors, and 
parts thereof: Parts: Other.'' Petitioner asserts that some of its 
competitors are classifying all or a substantial portion of similar 
fittings as parts of hydraulic systems, under subheading 8412.90.90, 
HTSUS,

[[Page 6881]]

which is duty free, thus placing Petitioner at a competitive 
disadvantage. This document invites comments with regard to the 
correctness of the current classification.

DATES: Comments must be received on or before April 11, 2016.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2016-0007.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, Office of International Trade, Customs and Border 
Protection, 90 K St. NE., 10th Floor, Washington, DC 20229-1177.
    Instructions: All submissions received must include the agency name 
and docket number for this notice of domestic interested party petition 
concerning the tariff classification of steel tube fittings. All 
comments received will be posted without change to http://www.regulations.gov, including any personal information provided.
    Docket: For access to the docket to read background documents, 
exhibits, or comments received, go to http://www.regulations.gov. 
Submitted comments may also be inspected during regular business days 
between the hours of 9 a.m. and 4:30 p.m., at Trade and Commercial 
Regulations Branch, Regulations and Rulings, Office of International 
Trade, Customs and Border Protection, 90 K Street NE., 10th Floor, 
Washington, DC. Arrangements to inspect submitted comments should be 
made in advance by calling Joseph Clark, Trade and Commercial 
Regulations Branch, at (202) 325-0118. Please note that any submitted 
comments that CBP receives by mail will be posted on the above-
referenced docket for the public's convenience.

FOR FURTHER INFORMATION CONTACT: Dwayne Rawlings, Tariff Classification 
and Marking Branch, Regulations and Rulings, Office of International 
Trade, Customs and Border Protection, at (202) 325-0092.

SUPPLEMENTARY INFORMATION:

Background

    A petition has been filed under section 516 of the Tariff Act of 
1930, as amended (19 U.S.C. 1516), on behalf of Brennan Industries, 
Inc. (``Petitioner''), which manufactures various hydraulic connectors, 
fittings and adapters in Solon, Ohio. Brennan meets all of the 
requirements of a domestic interested party set forth in 19 U.S.C. 
1516(a)(2) and section 175.3(a) in Title 19 of the Code of Federal 
Regulations (CFR).
    In New York Ruling (NY) E83408, dated July 8, 1999, a steel tube 
fitting from Taiwan is described as a ``cold forged nonalloy steel male 
threaded connector body having a center hex nut, one flare tube end and 
one male pipe end. These tube fittings connect a piece of rigid tubing 
to a valve, manifold or another piece of rigid tubing in a hydraulic 
system.'' CBP classified the steel tube fitting in subheading 
7307.99.50, Harmonized Tariff Schedule of the United States (HTSUS), as 
a tube or pipe fitting of iron or steel, other, other, other. 
Petitioner contends that the proper classification for the fitting is 
subheading 8412.90.90, HTSUS, which covers ``Other engines and motors, 
and parts thereof: Parts: Other.'' In 1999, the column one, general 
rate of duty for subheading 7307.99.50, HTSUS, was 4.3 percent ad 
valorem, and for heading 8412, HTSUS, it was ``Free'' (the current duty 
rates are respectively 4.3% ad valorem and ``Free'').
    Classification under the HTSUS is made in accordance with the 
General Rules of Interpretation (``GRIs''). GRI 1 provides that the 
classification of goods shall be determined according to the terms of 
the headings of the tariff schedule and any relative section or chapter 
notes. In the event that the goods cannot be classified solely on the 
basis of GRI 1, and if the headings and legal notes do not otherwise 
require, the remaining GRIs 2 through 6 may be applied, in numerical 
order.
    The Harmonized Commodity Description and Coding System Explanatory 
Notes (ENs) constitute the official interpretation of the Harmonized 
System at the international level. While not legally binding on the 
contracting parties and, therefore, not dispositive, the ENs provide a 
commentary on the scope of each heading of the Harmonized System and 
are thus useful in ascertaining the classification of merchandise under 
the system. CBP's position is that the ENs should always be consulted. 
See Treasury Decision (T.D.) 89-80, 54 FR 35127, 35128 (Aug. 23, 1989).

The Petitioner's Views

    Petitioner contends that the proper classification for the fitting 
is subheading 8412.90.90, HTSUS, which covers ``Other engines and 
motors, and parts thereof: Parts: Other.'' Petitioner notes that the 
ENs for Section XV, HTSUS, (which covers heading 7307, HTSUS), make 
clear that Section XV, HTSUS, does not cover ``[a]rticles of Section 
XVI (machinery, mechanical appliances and electrical goods, which 
include hydraulic system parts).'' See EN 1(f) to Section XV. Section 
XVI, HTSUS, covers heading 8412, HTSUS. Petitioner also recognizes that 
Legal Note 1(g) to Section XVI excludes certain products from Section 
XVI coverage, including, inter alia, parts of general use, as defined 
in Note 2 to Section XV, of base metal (section XV), or similar goods 
of plastics (chapter 39). See also EN 1(g) to Section XVI (``parts of 
general use'' is defined throughout the tariff schedule to mean, inter 
alia, articles of heading 7307). Referencing Note 2(b) to Section XVI, 
Petitioner then asserts that machine parts, if suitable for use solely 
or principally with a particular kind of machine of heading 8412, are 
to be classified with that machine or in heading 8409, 8431, 8448, 
8466, 8473, 8503, 8522, 8529 or 8538, as appropriate. Petitioner also 
cites to HQ 956743 (dated January 24, 1995), NY I82861 (dated June 28, 
2002), and NY K89798, supra (dated October 18, 2004; incorrectly cited 
by the Petitioner as NY K89789).
    Petitioner maintains the fitting of NY E83408 is ``solely imported, 
sold and specifically designed according to hydraulic system industry 
specifications for use in assembly of particular hydraulic engine or 
motor systems,'' and is essential to the effective and safe operation 
of the subassemblies and components to which they are parts. As such, 
according to Petitioner, it is classifiable in subheading 8412.90.90, 
HTSUS, which specifically covers ``other hydraulic engine and motor 
parts.'' Petitioner also contends that CBP's classification is 
incorrect because the fitting consists of more than one material or 
substance, thus implicating GRI 2(b) and GRI 3. Petitioner proceeds to 
reason that the fitting is prima facie classifiable as both a ``tube 
and pipe fitting'' of heading 7307, HTSUS, and an ``other hydraulic 
engine or motor part'' of heading 8412, HTSUS, and, therefore, GRI 3 is 
applicable. Petitioner then reasons that GRI 3(a) cannot determine 
classification of the fitting because the competing headings are 
equally specific, and GRI 3(b) is inapplicable as well because the 
fitting's essential character cannot be determined. Therefore, applying 
GRI 3(c), Petitioner concludes that heading 8412, HTSUS, is the proper 
heading because it is last in numerical order behind heading 7307, 
HTSUS.

Analysis Used by CBP in Prior Ruling

    In the ruling that is the subject of this petition, CBP held that a 
cold-forged, non-alloy, steel tube fitting that connects rigid tubing 
to valves, manifolds or other pieces of rigid tubing in a hydraulic 
system is classified in

[[Page 6882]]

subheading 7307.99.50, HTSUS, as other tube or pipe fitting (for 
example, couplings, elbows, sleeves), of iron or steel. It is CBP's 
position that the subject fitting is a part of general use that can 
connect tubes and pipes, and is thus classified under heading 7307, 
HTSUS, by application of GRI 1 and the exclusionary effect of Legal 
Note 1(g) to Section XVI. In order for classification by application of 
GRI 3 to be appropriate, a good must be unable to be classified by 
application of GRIs 1 or 2, and the good must be prima facie 
classifiable in two or more headings. In this instance, goods of 
heading 7307, HTSUS, are explicitly excluded from heading 8412, HTSUS, 
by application of Legal Note 1(g) to Section XVI. Therefore, GRI 3 is 
not applicable. Historically, CBP has recognized that, for tariff 
purposes, hoses are not interchangeable with pipes or tubes. In HQ 
088393, dated March 26, 1991, CBP examined the difference between hose 
fittings, and tube or pipe fittings. In that ruling, CBP first noted 
that the courts have long recognized that although a ``hose'' may be 
considered a ``tube'' in common meaning, they are not interchangeable 
terms for tariff purposes. Citing John V. Carr & Son, Inc. v. United 
States, 76 Cust.Ct. 162, C.D. 4652 (1976) (interpreting the meanings of 
the terms ``hose'' and ``pipes and tubes'' within the context of the 
Tariff Schedule of the United States (TSUS)); see also J.E. Bernard & 
Co., Inc. v. United States, 64 Cust.Ct. 425, C.D. 4029 (1970) (in 
comparing the TSUS tariff terms ``copper tubing'' and ``flexible metal 
tubing,'' the court expressed the principle that quite often articles 
that literally appear to respond to the common meaning of a tariff term 
are not the articles classified in a tariff sense); R.J. Saunders & 
Co., Inc. v. United States, 49 C.C.P.A. 87, C.A.D. 801 (1962). Thus, 
under the TSUS, CBP consistently held that hose fittings are not 
properly classifiable under the TSUS provision for pipe and tube 
fittings. See C.I.E. 953/63 (July 2, 1963), C.I.E. 1684/65 (October 18, 
1965), TC 465.251 M (June 18, 1968), TC 426.89 AS (November 27, 1968), 
MFG 423.371 G (September 8, 1970), and HQ 064538 (April 17, 1980). 
While prior TSUS cases are not dispositive, ``[n]evertheless, on a 
case-by-case basis prior decisions should be considered instructive in 
interpreting the HTSUS, particularly where the nomenclature previously 
interpreted in those decisions remains unchanged and no dissimilar 
interpretation is required by the text of the HTSUS.'' H.R. Conf. Rep. 
No. 100-576, at 549-50 (1988), reprinted in 1988 U.S.C.C.A.N. 1547, 
1582-83; see also NY 870421, dated February 7, 1992.
    The text of heading 7307, HTSUS, provides for ``tube or pipe 
fittings,'' which is similar to the TSUS text in the cases discussed 
above (``pipe and tube fittings,'' heading 613, TSUS). Thus, with 
regard to the competing HTSUS provisions at issue, CBP's position is 
that if an iron or steel fitting is a part of general use and is 
designed in such a manner where it can be used in conjunction with 
tubes or pipes, or tubes, pipes and hoses, that fitting is classified 
in heading 7307. See NY K87518, dated July 21, 2004; see also NY 
H87517, dated February 20, 2002.
    However, and again with regard to the competing headings at issue, 
if such fittings meet the terms of Note 2 to Section XVI and are 
considered to be parts of hydraulic systems, such as hose fittings (as 
opposed to ``parts of general use'' of heading 7307, HTSUS), they are 
classified in heading 8412, HTSUS. See NY K89798, dated October 18, 
2004; NY N006172, dated February 28, 2007; NY H82321, dated June 25, 
2001; NY N242950, dated June 26, 2013; see also HQ 956743, dated 
January 24, 1995 (stating the general principle).
    CBP concludes that the subject fittings are parts of general use 
that can connect tubes and pipes, and are thus classified under heading 
7307, HTSUS, by application of GRI 1 and the exclusionary effect of 
Legal Note 1(g) to Section XVI. Finally, with regard to Petitioner's 
argument that GRI 3 is applicable, in order for classification by 
application of GRI 3 to be appropriate, a good must be unable to be 
classified by application of GRIs 1 or 2, and the good must be prima 
facie classifiable in two or more headings. In this instance, goods of 
heading 7307, HTSUS, are explicitly excluded from heading 8412, HTSUS, 
by application of Legal Note 1(g) to Section XVI. Therefore, GRI 3 is 
not applicable. In addition, GRI 3 does not apply because the fittings 
do not consist of more than one material or substance.

Comments

    Pursuant to section 175.21, CBP Regulations (19 CFR 175.21), before 
making a determination on this matter, CBP invites written comments on 
the petition from interested parties.
    The domestic interested party petition concerning the tariff 
classification of hydraulic system fittings, as well as all comments 
received in response to this notice, will be available for public 
inspection on the docket at www.regulations.gov. Please note that any 
submitted comments that CBP receives by mail will be posted on the 
above-referenced docket for the public's convenience.

Authority

    This notice is published in accordance with 19 U.S.C. 1516 and 
section 175.21 of the CBP Regulations (19 CFR 175.21).

     Dated: February 4, 2016.
R. Gil Kerlikowske,
Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2016-02555 Filed 2-8-16; 8:45 am]
 BILLING CODE 9111-14-P

6880 Federal Register / Vol. 81, No. 26 / Tuesday, February 9, 2016 / Notices SUMMARY: On behalf of the Alaska of certain alternative (non-mechanical) policy includes a 24-month timeline for Regional Response Team (ARRT), the countermeasures, including chemical development of dispersant areas to be U.S. Coast Guard (USCG) announces dispersants, used in oil spill response avoided within geographic subareas establishment of a more inclusive, operations. covered by the preauthorization area. It comprehensive, and conservative Preauthorization for use of also includes industry establishing dispersant use policy that includes a dispersants has not existed in the sufficient dispersant capability in preauthorization area and an enhanced Alaska region since September 2008. locales to be available for potential protocol for use of chemical dispersant This new policy change will allow for authorization for use by the Federal On during responses to spills of crude oil in industry to develop a reliable, regulated Scene Coordinator during a spill certain waters offshore of Alaska. dispersant use capability to be available response. Failure to establish dispersant Federal regulations covering certain to mitigate—if directed by the Federal areas to be avoided within geographic vessel response plans require On Scene Coordinator—large crude oil subareas covered by the development of defined dispersant spills more readily. However, extensive preauthorization area will result in the response capabilities when such vessels government, tribal, and other entire geographic subarea reverting to are operating in waters where dispersant stakeholder notifications would be the case-by-case dispersant use protocol use preauthorization agreements exist. required before use. used in undesignated areas until such DATES: Plan holders for affected vessel Following a multi-year collaborative time as dispersant use avoidance areas effort among governmental agencies as are developed. response plans have 24 months from the described in the NCP at 40 CFR 300.910, This notice is issued under authority date of publication of this notice to the ARRT signed a new Dispersant Use of the Oil Pollution Act of 1990 and achieve compliance. Plan for Alaska (Appendix I, Annex F, Executive Order 12777. FOR FURTHER INFORMATION CONTACT: For Alaska Federal/State Preparedness Plan information about this document: From Dated: January 28, 2016. for Response to Oil & Hazardous USCG: call or email Mark Everett, M.L. Everett, Substance Discharges/Releases [Unified Incident Management & Preparedness Incident Management & Preparedness Plan]) on January 27, 2016. This Advisor, U.S. Coast Guard District Seventeen. Advisor, Seventeenth Coast Guard document includes, among other things, District, Juneau, AK; telephone (907) an updated protocol for use and [FR Doc. 2016–02559 Filed 2–8–16; 8:45 am] 463–2804; email Mark.Everett@uscg.mil; monitoring of chemical dispersants in BILLING CODE 9110–04–P From Environmental Protection undesignated areas on a case-by-case Agency (EPA): call or email Chris Field, basis and a preauthorization plan for Program Manager, Emergency DEPARTMENT OF HOMELAND use and monitoring of chemical Management Program (EPA Region 10); SECURITY dispersants on spills from tank vessels telephone (206) 553–1674; email carrying crude oil as cargo during non- Field.Chris@epa.gov; U.S. Customs and Border Protection innocent passage through certain areas For the State of Alaska: call or email north and south of the Aleutian Island [USCBP–2016–0007] Gary Folley, Program Manager, chain and the northern Gulf of Alaska. Prevention, Preparedness & Response Receipt of Domestic Interested Party The Dispersant Use Plan for Alaska may Program, Division of Spill Prevention & Petition Concerning the Tariff be found at www.alaskarrt.org. Response, Alaska Department of U.S. Coast Guard enforcement of the Classification of a Steel Tube Fitting Environmental Conservation; telephone requirements of 33 CFR 154.1035 and AGENCY: U.S. Customs and Border (907) 262–3411; email gary.folley@ 1045 and 33 CFR 155.1035, and 1050 Protection, Department of Homeland alaska.gov. depends upon existence of a dispersant Security. SUPPLEMENTARY INFORMATION: preauthorization plan (including a ACTION: Notice; solicitation of preauthorization area) which complies comments. Public Participation and Comments with the requirements of the NCP, Because this notice is non- specifically at 40 CFR 300.910. SUMMARY: U.S. Customs and Border rulemaking, no public participation or Enforcement of the preauthorization Protection (CBP) has received a petition comments are being taken. Questions area compliance requirements will take submitted on behalf of a domestic can be directed to any person named in effect 24 months after publication of this interested party requesting the the FOR FURTHER INFORMATION CONTACT notice to allow plan holders time to reclassification under the Harmonized section, above. achieve compliance. Tariff Schedule of the United States Development of the Dispersant Use (HTSUS) of a steel tube fitting from Discussion Plan for Alaska included compliance Taiwan. CBP classified the steel tube The Alaska Regional Response Team with the consultation (with National fitting under subheading 7307.99.50, (ARRT) is one of 13 interagency, Marine Fisheries Service and U.S. Fish HTSUS, which provides for: ‘‘Tube or intergovernmental groups responsible & Wildlife Service) requirements of pipe fittings (for example, couplings, under the National Oil and Hazardous section 7 of the Endangered Species Act elbows, sleeves), of iron or steel: Other: Substances Pollution Contingency Plan (ESA), Essential Fish Habitat (EFH) Other: Other.’’ The 2015 column one, (a.k.a. National Contingency Plan or analysis required by the Magnusson- general rate of duty is 4.3 percent ad NCP) at 40 CFR part 300 for regional Stevens Fisheries Conservation and valorem. Petitioner contends that the planning, including policy Management Act, consideration of the proper classification for the steel tube mstockstill on DSK4VPTVN1PROD with NOTICES development, and coordination of requirements of the Marine Mammal fitting is under subheading 8412.90.90, preparedness and response actions Protection Act (MMPA), outreach to HTSUS, which provides for: ‘‘Other related to discharges of oil and releases affected communities and stakeholder engines and motors, and parts thereof: of hazardous materials and other groups, compliance with State of Alaska Parts: Other.’’ Petitioner asserts that pollutants and contaminants into the public notice requirements, and some of its competitors are classifying environment. The ARRT’s consultation with federally-recognized all or a substantial portion of similar responsibilities include development of tribes as required by Executive Order fittings as parts of hydraulic systems, policies regarding the preauthorization 13175. Implementation of the new under subheading 8412.90.90, HTSUS, VerDate Sep<11>2014 17:54 Feb 08, 2016 Jkt 238001 PO 00000 Frm 00053 Fmt 4703 Sfmt 4703 E:\FR\FM\09FEN1.SGM 09FEN1

Federal Register / Vol. 81, No. 26 / Tuesday, February 9, 2016 / Notices 6881 which is duty free, thus placing and section 175.3(a) in Title 19 of the include hydraulic system parts).’’ See Petitioner at a competitive disadvantage. Code of Federal Regulations (CFR). EN 1(f) to Section XV. Section XVI, This document invites comments with In New York Ruling (NY) E83408, HTSUS, covers heading 8412, HTSUS. regard to the correctness of the current dated July 8, 1999, a steel tube fitting Petitioner also recognizes that Legal classification. from Taiwan is described as a ‘‘cold Note 1(g) to Section XVI excludes DATES: Comments must be received on forged nonalloy steel male threaded certain products from Section XVI or before April 11, 2016. connector body having a center hex nut, coverage, including, inter alia, parts of one flare tube end and one male pipe general use, as defined in Note 2 to ADDRESSES: You may submit comments, end. These tube fittings connect a piece Section XV, of base metal (section XV), identified by docket number, by one of of rigid tubing to a valve, manifold or or similar goods of plastics (chapter 39). the following methods: another piece of rigid tubing in a See also EN 1(g) to Section XVI (‘‘parts • Federal eRulemaking Portal: http:// hydraulic system.’’ CBP classified the of general use’’ is defined throughout www.regulations.gov. Follow the steel tube fitting in subheading the tariff schedule to mean, inter alia, instructions for submitting comments 7307.99.50, Harmonized Tariff Schedule articles of heading 7307). Referencing via docket number USCBP–2016–0007. of the United States (HTSUS), as a tube Note 2(b) to Section XVI, Petitioner then • Mail: Trade and Commercial or pipe fitting of iron or steel, other, asserts that machine parts, if suitable for Regulations Branch, Regulations and other, other. Petitioner contends that the use solely or principally with a Rulings, Office of International Trade, proper classification for the fitting is particular kind of machine of heading Customs and Border Protection, 90 K St. subheading 8412.90.90, HTSUS, which 8412, are to be classified with that NE., 10th Floor, Washington, DC 20229– covers ‘‘Other engines and motors, and machine or in heading 8409, 8431, 8448, 1177. parts thereof: Parts: Other.’’ In 1999, the 8466, 8473, 8503, 8522, 8529 or 8538, as Instructions: All submissions received column one, general rate of duty for appropriate. Petitioner also cites to HQ must include the agency name and subheading 7307.99.50, HTSUS, was 4.3 956743 (dated January 24, 1995), NY docket number for this notice of percent ad valorem, and for heading I82861 (dated June 28, 2002), and NY domestic interested party petition 8412, HTSUS, it was ‘‘Free’’ (the current K89798, supra (dated October 18, 2004; concerning the tariff classification of duty rates are respectively 4.3% ad incorrectly cited by the Petitioner as NY steel tube fittings. All comments valorem and ‘‘Free’’). K89789). received will be posted without change Classification under the HTSUS is Petitioner maintains the fitting of NY to http://www.regulations.gov, including made in accordance with the General E83408 is ‘‘solely imported, sold and any personal information provided. Rules of Interpretation (‘‘GRIs’’). GRI 1 specifically designed according to Docket: For access to the docket to provides that the classification of goods hydraulic system industry specifications read background documents, exhibits, shall be determined according to the for use in assembly of particular or comments received, go to http:// terms of the headings of the tariff hydraulic engine or motor systems,’’ www.regulations.gov. Submitted schedule and any relative section or and is essential to the effective and safe comments may also be inspected during chapter notes. In the event that the operation of the subassemblies and regular business days between the hours goods cannot be classified solely on the components to which they are parts. As of 9 a.m. and 4:30 p.m., at Trade and basis of GRI 1, and if the headings and such, according to Petitioner, it is Commercial Regulations Branch, legal notes do not otherwise require, the classifiable in subheading 8412.90.90, Regulations and Rulings, Office of remaining GRIs 2 through 6 may be HTSUS, which specifically covers International Trade, Customs and applied, in numerical order. ‘‘other hydraulic engine and motor Border Protection, 90 K Street NE., 10th The Harmonized Commodity parts.’’ Petitioner also contends that Floor, Washington, DC. Arrangements to Description and Coding System CBP’s classification is incorrect because inspect submitted comments should be Explanatory Notes (ENs) constitute the the fitting consists of more than one made in advance by calling Joseph official interpretation of the Harmonized material or substance, thus implicating Clark, Trade and Commercial System at the international level. While GRI 2(b) and GRI 3. Petitioner proceeds Regulations Branch, at (202) 325–0118. not legally binding on the contracting to reason that the fitting is prima facie Please note that any submitted parties and, therefore, not dispositive, classifiable as both a ‘‘tube and pipe comments that CBP receives by mail the ENs provide a commentary on the fitting’’ of heading 7307, HTSUS, and an will be posted on the above-referenced scope of each heading of the ‘‘other hydraulic engine or motor part’’ docket for the public’s convenience. Harmonized System and are thus useful of heading 8412, HTSUS, and, therefore, in ascertaining the classification of GRI 3 is applicable. Petitioner then FOR FURTHER INFORMATION CONTACT: merchandise under the system. CBP’s reasons that GRI 3(a) cannot determine Dwayne Rawlings, Tariff Classification position is that the ENs should always classification of the fitting because the and Marking Branch, Regulations and be consulted. See Treasury Decision competing headings are equally specific, Rulings, Office of International Trade, (T.D.) 89–80, 54 FR 35127, 35128 (Aug. and GRI 3(b) is inapplicable as well Customs and Border Protection, at (202) 23, 1989). because the fitting’s essential character 325–0092. cannot be determined. Therefore, SUPPLEMENTARY INFORMATION: The Petitioner’s Views applying GRI 3(c), Petitioner concludes Petitioner contends that the proper that heading 8412, HTSUS, is the proper Background classification for the fitting is heading because it is last in numerical A petition has been filed under subheading 8412.90.90, HTSUS, which order behind heading 7307, HTSUS. mstockstill on DSK4VPTVN1PROD with NOTICES section 516 of the Tariff Act of 1930, as covers ‘‘Other engines and motors, and amended (19 U.S.C. 1516), on behalf of parts thereof: Parts: Other.’’ Petitioner Analysis Used by CBP in Prior Ruling Brennan Industries, Inc. (‘‘Petitioner’’), notes that the ENs for Section XV, In the ruling that is the subject of this which manufactures various hydraulic HTSUS, (which covers heading 7307, petition, CBP held that a cold-forged, connectors, fittings and adapters in HTSUS), make clear that Section XV, non-alloy, steel tube fitting that Solon, Ohio. Brennan meets all of the HTSUS, does not cover ‘‘[a]rticles of connects rigid tubing to valves, requirements of a domestic interested Section XVI (machinery, mechanical manifolds or other pieces of rigid tubing party set forth in 19 U.S.C. 1516(a)(2) appliances and electrical goods, which in a hydraulic system is classified in VerDate Sep<11>2014 17:54 Feb 08, 2016 Jkt 238001 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 E:\FR\FM\09FEN1.SGM 09FEN1

6882 Federal Register / Vol. 81, No. 26 / Tuesday, February 9, 2016 / Notices subheading 7307.99.50, HTSUS, as reprinted in 1988 U.S.C.C.A.N. 1547, receives by mail will be posted on the other tube or pipe fitting (for example, 1582–83; see also NY 870421, dated above-referenced docket for the public’s couplings, elbows, sleeves), of iron or February 7, 1992. convenience. steel. It is CBP’s position that the subject The text of heading 7307, HTSUS, provides for ‘‘tube or pipe fittings,’’ Authority fitting is a part of general use that can connect tubes and pipes, and is thus which is similar to the TSUS text in the This notice is published in classified under heading 7307, HTSUS, cases discussed above (‘‘pipe and tube accordance with 19 U.S.C. 1516 and by application of GRI 1 and the fittings,’’ heading 613, TSUS). Thus, section 175.21 of the CBP Regulations exclusionary effect of Legal Note 1(g) to with regard to the competing HTSUS (19 CFR 175.21). Section XVI. In order for classification provisions at issue, CBP’s position is Dated: February 4, 2016. by application of GRI 3 to be that if an iron or steel fitting is a part R. Gil Kerlikowske, appropriate, a good must be unable to be of general use and is designed in such Commissioner, U.S. Customs and Border classified by application of GRIs 1 or 2, a manner where it can be used in Protection. and the good must be prima facie conjunction with tubes or pipes, or [FR Doc. 2016–02555 Filed 2–8–16; 8:45 am] classifiable in two or more headings. In tubes, pipes and hoses, that fitting is BILLING CODE 9111–14–P this instance, goods of heading 7307, classified in heading 7307. See NY HTSUS, are explicitly excluded from K87518, dated July 21, 2004; see also heading 8412, HTSUS, by application of NY H87517, dated February 20, 2002. DEPARTMENT OF HOMELAND However, and again with regard to the SECURITY Legal Note 1(g) to Section XVI. competing headings at issue, if such Therefore, GRI 3 is not applicable. fittings meet the terms of Note 2 to U.S. Citizenship and Immigration Historically, CBP has recognized that, Section XVI and are considered to be for tariff purposes, hoses are not Services parts of hydraulic systems, such as hose interchangeable with pipes or tubes. In fittings (as opposed to ‘‘parts of general [OMB Control Number 1615–0054] HQ 088393, dated March 26, 1991, CBP use’’ of heading 7307, HTSUS), they are examined the difference between hose Agency Information Collection classified in heading 8412, HTSUS. See Activities: Notice of Naturalization fittings, and tube or pipe fittings. In that NY K89798, dated October 18, 2004; NY ruling, CBP first noted that the courts Oath Ceremony, Form Number N–445; N006172, dated February 28, 2007; NY Extension, Without Change, of a have long recognized that although a H82321, dated June 25, 2001; NY ‘‘hose’’ may be considered a ‘‘tube’’ in Currently Approved Collection N242950, dated June 26, 2013; see also common meaning, they are not HQ 956743, dated January 24, 1995 AGENCY: U.S. Citizenship and interchangeable terms for tariff (stating the general principle). Immigration Services, Department of purposes. Citing John V. Carr & Son, CBP concludes that the subject fittings Homeland Security. Inc. v. United States, 76 Cust.Ct. 162, are parts of general use that can connect ACTION: 60-Day Notice. C.D. 4652 (1976) (interpreting the tubes and pipes, and are thus classified meanings of the terms ‘‘hose’’ and under heading 7307, HTSUS, by SUMMARY: The Department of Homeland ‘‘pipes and tubes’’ within the context of application of GRI 1 and the Security (DHS), U.S. Citizenship and the Tariff Schedule of the United States exclusionary effect of Legal Note 1(g) to Immigration (USCIS) invites the general (TSUS)); see also J.E. Bernard & Co., Inc. Section XVI. Finally, with regard to public and other Federal agencies to v. United States, 64 Cust.Ct. 425, C.D. Petitioner’s argument that GRI 3 is comment upon this proposed extension 4029 (1970) (in comparing the TSUS applicable, in order for classification by of a currently approved collection of tariff terms ‘‘copper tubing’’ and application of GRI 3 to be appropriate, information. In accordance with the ‘‘flexible metal tubing,’’ the court a good must be unable to be classified Paperwork Reduction Act (PRA) of expressed the principle that quite often by application of GRIs 1 or 2, and the 1995, the information collection notice articles that literally appear to respond good must be prima facie classifiable in is published in the Federal Register to to the common meaning of a tariff term two or more headings. In this instance, obtain comments regarding the nature of are not the articles classified in a tariff goods of heading 7307, HTSUS, are the information collection, the sense); R.J. Saunders & Co., Inc. v. explicitly excluded from heading 8412, categories of respondents, the estimated United States, 49 C.C.P.A. 87, C.A.D. HTSUS, by application of Legal Note burden (i.e. the time, effort, and 801 (1962). Thus, under the TSUS, CBP 1(g) to Section XVI. Therefore, GRI 3 is resources used by the respondents to consistently held that hose fittings are not applicable. In addition, GRI 3 does respond), the estimated cost to the not properly classifiable under the not apply because the fittings do not respondent, and the actual information TSUS provision for pipe and tube consist of more than one material or collection instruments. fittings. See C.I.E. 953/63 (July 2, 1963), substance. DATES: Comments are encouraged and C.I.E. 1684/65 (October 18, 1965), TC will be accepted for 60 days until April 465.251 M (June 18, 1968), TC 426.89 Comments 11, 2016. AS (November 27, 1968), MFG 423.371 Pursuant to section 175.21, CBP ADDRESSES: All submissions received G (September 8, 1970), and HQ 064538 Regulations (19 CFR 175.21), before must include the OMB Control Number (April 17, 1980). While prior TSUS making a determination on this matter, 1615–0054 in the subject box, the cases are not dispositive, CBP invites written comments on the agency name and Docket ID USCIS– ‘‘[n]evertheless, on a case-by-case basis petition from interested parties. 2006–0055. To avoid duplicate mstockstill on DSK4VPTVN1PROD with NOTICES prior decisions should be considered The domestic interested party petition submissions, please use only one of the instructive in interpreting the HTSUS, concerning the tariff classification of following methods to submit comments: particularly where the nomenclature hydraulic system fittings, as well as all (1) Online. Submit comments via the previously interpreted in those comments received in response to this Federal eRulemaking Portal Web site at decisions remains unchanged and no notice, will be available for public http://www.regulations.gov under e- dissimilar interpretation is required by inspection on the docket at Docket ID number USCIS–2006–0055; the text of the HTSUS.’’ H.R. Conf. Rep. www.regulations.gov. Please note that (2) Email. Submit comments to No. 100–576, at 549–50 (1988), any submitted comments that CBP USCISFRComment@uscis.dhs.gov; VerDate Sep<11>2014 17:54 Feb 08, 2016 Jkt 238001 PO 00000 Frm 00055 Fmt 4703 Sfmt 4703 E:\FR\FM\09FEN1.SGM 09FEN1


Document Created: 2018-02-02 14:30:11
Document Modified: 2018-02-02 14:30:11
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice; solicitation of comments.
DatesComments must be received on or before April 11, 2016.
ContactDwayne Rawlings, Tariff Classification and Marking Branch, Regulations and Rulings, Office of International Trade, Customs and Border Protection, at (202) 325-0092.
FR Citation81 FR 6880 
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