Steel Classification and Invoice Description for Customs

1. Steel Classification and Invoice Description for Customs How to do it all in 80 characters American Institute for International Steel Independence Seaport Museum Philadelphia September 27, 2011

2. Clarance Bull, Vice President M.G. Maher, Houston Leslie Aita, Sr. Import Specialist US Customs Philadelphia Thomas Graf, Import Specialist US Customs Philadelphia Steven W. Baker Law Offices of Steven W. Baker, Novato, CA

3. Classification mistakes are consistently the most common errors found in Compliance Measurement exams and Focused Assessments For most basic steel mill products, this does not affect basic duty rates, but still remains an error for entry review

4. Although the coverage of an Antidumping or Countervailing Duty Orders depends on the written language of the Commerce Scope Definition, tariff classification remains important in practice for at least the initial decision on inclusion or exclusion

5. Classification is also important for statistical purposes – both for Foreign Trade Statistics and for use in reviewing import volumes for AD/CVD investigations and other trade remedy actions Steel Compliance Measurement statistics show generally high compliance levels, but classification is the primary source of errors

6. Concepts and Issues to consider • Commercial and Tariff definitions are different for certain criteria such as high strength steel and tool steel • Commercial specifications may allow variances that cross over Tariff definitions for alloy steel, high strength steel, tool steel, etc., requiring different classifications for different heats within the same entry

7. The HTS is consistent internationally only to the 6 digit level

8. Invoice Requirements • CR 141.86 requires “a detailed description of the merchandise” • What information is necessary to classify under the HTSUS? • What information is necessary to determine coverage under AD or CVD Orders or other trade remedies (e.g., “201”)

9. Additional Information • Import License Number: when license required by Commerce Department, number must be stated on entry – CR 12.145 • Mill Test Certificate – chemistry statement required for all Iron and Steel in Chapter 72 and HTS 7301-7307 – CR 141.89

10. Electronic Invoice • Electronic Invoice Program (EIP) requires approval by CBP, use of ACH • Required when using Remote Location Filing (RLF) – limited to Type 01 and Type 11 entries • Product description limited to 80 characters • Additional documents may still be required (hybrid)

11. Tariff Description • Flat-rolled products of other (not stainless) alloy steel, width 600 MM or more, hot-rolled in coils, thickness of 4.75 MM or more, other (not tool steel), other (not high-nickel alloy steel) (7225.30.3050) • Covers tariff issues, but what about AD Order on China flat-rolled carbon and low alloy steel? (A-570-865)

12. 80 Character Description • FR OTH AL STL, WDTH GT=600MM, HR CLS, GT=4.75MM THCK, NESOI (not elsewhere specified or included)

13. 80 Character Description • FLT RL IR/NAL STL GT=0.4MM T, 600MM W ZNC PLT NESOI (7210.49.0091) • Flat-rolled iron or nonalloy steel, of a width of 600 mm or more, otherwise (not electrolytically) plated or coated with zinc, other (not corrugated), other (not high strength steel), of a thickness of 0.4 mm or more