HQ 952863: Alloy Steel Plates, Steel Circles; Bevelling and Perforating; Liquid Propane Gas Tank Components; Unfinished Tank Bodies; Headings 7309, 7310, 7311; GRI 2(a), HTSUS; Parts of Railway Rolling Stock; Additional U.S. Rule 1(c); Heading 8607; NY 879033 Modified

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 952863

                            JULY 21 1993

CLA-2:CO:R:C:M   952863 JAS

CATEGORY:   Classification

TARIFF NO.: 7225.90.00

Vincent Bowen, Esq.
Willkie Farr & Gallagher
1155 21st. Street, N.W.
Washington, D.C. 20036-3384

RE:  Alloy Steel Plates, Steel Circles; Bevelling and
     Perforating; Liquid Propane Gas Tank Components; 
     Unfinished Tank Bodies; Headings 7309, 7310, 7311; 
     GRI 2(a), HTSUS; Parts of Railway Rolling Stock;
     Additional U.S. Rule 1(c); Heading 8607; 
     NY 879033 Modified

Dear Mr. Bowen:

     In a letter dated November 12, 1993, on behalf of Primary
Steel, Inc., you request reconsideration of a ruling you recently
received from the Area Director of Customs, New York Seaport. 
The merchandise in issue is alloyed steel plates and circles from
Brazil.  A meeting was held in our office on April 19, 1993,
which you confirmed in a May 21, 1993, submission.  

     For reasons of confidentiality, photographs and other visual
representations of the merchandise and the processing operations
are not available. 

FACTS:

     NY 879033, dated November 6, 1992, addressed the tariff
status of hot-rolled bevelled and perforated steel plates and
steel circles torch cut from hot-rolled plate, for use in
fabricating liquid propane gas tanks and rail car tanks.  The
ruling stated the plate was nonalloyed.  The merchandise was
found to be classifiable under the provision for other flat-
rolled products of iron or nonalloy steel, of a width of 600 mm
or more, hot-rolled, not clad, plated or coated, in subheading
7208.90.00, Harmonized Tariff Schedule of the United States
(HTSUS).

     As imported, the steel plates are rectangular, from 328 to
378 inches long and 93 to 147 inches wide.  Both the longitudinal                              - 2 -

edges and the lateral edges of these plates are resquared and
bevelled at precise angles to form a trapezoidal shape.  The
circles are torch cut from plate to dimensions ranging from 0.450
to 0.780 inches in thickness and from 135.3125 to 147 inches in 
diameter.  The steel's alloy content is specified in the May 21
submission.  The steel is considered alloyed for tariff purposes
because it has a minimum of 0.05 percent, by weight, of titanium.
The plates to be used in the liquid propane tanks are perforated
by a hole drilling machine to accommodate pipes in precise
locations required by the tank assemblers.  This is the condition
of the merchandise as imported.

     After importation, the steel circles are flanged and formed
into dish-shaped tank heads.  The rectangular-shaped plates are
bent laterally on a rolling machine to form rings, with the two
bevelled lateral edges touching.  The lateral edges are then
computer-welded at the junction and the space created where the
beveled ends meet is filled in with welding material.  The
resulting rings are then cleaned and painted.  A tank cylinder
may require from 1 to 6 rings, depending on tank size.  For the
larger tanks, the rings are welded together along their bevelled,
longitudinal edges.  The tank heads are then assembled to the top
and bottom of the body cylinders to complete the tank.  The tank
assemblers then fit the tanks with pipes, valves and other
fittings, and supports such as manways and ladders, depending on
their ultimate use.  

     You state that for convenience in transport and ease in
handling, the requirements of several U.S. tank assemblers are
imported bundled together.  After importation, the various
components are separated and shipped to individual assemblers.

     You maintain that under General Rule of Interpretation (GRI)
2(a), HTSUS, the rectangular steel plates and circles, entered
unassembled, are unfinished articles having the essential
character of complete or finished tanks of headings 7309, 7310,
7311, or are unfinished steel articles of heading 7326.  At the
April 19 meeting, you argued, among other things, that in the
context of the HTSUS, by virtue of bevelling and perforating, the
plates and circles assume the character of complete cylindrical
tanks, in unassembled condition, and that these processes advance
the plates and circles beyond the status of flat-rolled products. 
In the May 21 submission, you advance the additional argument
that the merchandise constitutes parts of railway rolling stock
of heading 8607.  
     
     You cite several cases decided under previous tariff codes
for the proposition that, as imported, the merchandise has been
advanced beyond the stage of materials and is dedicated to a
single end use; the identity of the finished articles is fixed
with certainty; and, commercially, the merchandise is capable of
no other substantial use.                                 - 3 -

ISSUE:

     Whether the steel plates and circles, imported unassembled,
have the essential character of tanks or containers of headings
7309, 7310 or 7311, or of articles of heading 7326; whether they
are unfinished parts of railway rolling stock.    
     
LAW AND ANALYSIS:

     Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs).  GRI 1 states in part
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.

     Chapter 72, Note 1(k), HTSUS, indicates, in part, that flat-
rolled products include those of solid rectangular (other than
square) cross section, straight lengths of the required
dimensions, and shapes other than rectangular or square.  These
include flat-rolled products with patterns in relief derived
directly from rolling (for example, grooves, ribs, checkers,
tears, buttons, lozenges), and those which have been perforated,
corrugated or polished, provided they do not thereby assume the
character of articles or products of other headings.       

     Relevant Harmonized Commodity Description And Coding System
Explanatory Notes (ENs), at p. 994, in commenting on the meaning
of note 1(k), indicate that flat-rolled products of heading 7208
are considered to have been worked after rolling if they have
been perforated, corrugated, bevelled or rounded at the edges
(Emphasis added).  It is apparent that perforating and bevelling
are operations that will not remove the rectangular steel plates
and steel circles from heading 7208 unless these processes,
either individually, in combination, or combined with other
processes, impart the essential character of goods of other
headings.  Note our ruling to you of February 19, 1992 (HQ
950626).

     In the various cases you cite the court recognizes the
difficulty in formulating any general principle that can be
universally applied.  Previous decisions the court reviews in the
cited cases are all based on the particular facts presented. 
None of these cases discusses the concept of essential character.
     
     In common meaning, the terms tank and container connote
receptacles or vessels, articles that contain, hold or store
things, in most instances liquids or granular products.  As
imported, the rectangular steel plates with bevelled edges and
perforations, and the steel circles, have neither the form nor
shape, or any visually apparent characteristic that would                              - 4 -

establish their identity as tanks or pressure vessels in
unassembled form.  The evidence of record does not conclusively
indicate in what respect the merchandise has assumed the
character of articles of headings 7309, 7310, 7311, or 7326.

     Because the bevelling and perforating of the steel plate are
operations not sufficient in this case to remove the merchandise
from the flat-rolled provisions of chapter 72, the argument that
the merchandise constitutes parts of bodies for railway rolling
stock is not persuasive.  See Additional U.S. Rule 1(c), HTSUS.

HOLDING:

     Under the authority of GRI 1, the rectangular plates and
circles, of alloy steel, are provided for in heading 7225, as
flat-rolled products of other alloy steel, of a width of 600 mm
or more.  Actual classification is in subheading 7225.90.00,
HTSUS, other flat-rolled products.  The rate of duty is 5.8
percent ad valorem.  

     Products from Brazil classifiable in this provision may be
eligible for free entry under the Generalized System of
Preferences (GSP), if otherwise eligible under the law and
applicable Customs Regulations. 

     
EFFECT ON OTHER RULINGS:

     Under the authority of section 177.9(d), Customs
Regulations, NY 879033 is modified accordingly.                       

                         Sincerely,


                         John Durant, Director
                         Commercial Rulings Division