CBP Seeks Comments on Petition to Reclassify Steel Tube Fittings
CBP requested public comments in response to a petition from a domestic party, Brennan Industries, to reclassify hydraulic system fittings. Comments are due April 11, said CBP in its notice (here). Currently, these fittings are classified as ''a tube or pipe fitting of iron or steel, other, other, other'' under subheading 7307.99.50 with a duty rate of 4.3%. However, the petitioner contends that the proper classification for these objects is under duty-free subheading 8412.90.90 as “Other engines and motors, and parts thereof: Parts: Other." Brennan said that some competitors "are classifying all or a substantial portion of similar fittings as parts of hydraulic systems" under subheading 8412.90.90, which puts the company at a competitive disadvantage.
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The company argued "that CBP’s classification is incorrect because the fitting consists of more than one material or substance, thus implicating [General Rules of Interpretation] 2(b) and GRI 3." Also, because the subheadings are equally specific and the fitting's essential character can't be determined, the classification should be based on numerical order, Brennan said. CBP disagreed with Brennan's arguments and said its 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."