Cargo Systems Messaging Service

CSMS #45298596 - Update: Proper Entry/Entry Summary Reporting/Pipe Spools w/ Pipes from Multiple Countries

This message updates CSMS# 42783265 issued on May 21, 2020 and provides additional guidance on steel import license requirements for pipe spools.
 
Pipe spools are prefabricated components of a piping system consisting of various types of pipes, flanges, elbows, and fittings, and may contain line pipes and other components manufactured in multiple countries. Pipe spools, made of steel, may be subject to Section 232 duties and quotas, Section 301 duties, as well as antidumping and countervailing duties (AD/CVD), based on the country of origin of the component and the AD/CVD scope.

 It is not uncommon for a pipe spool to be manufactured with pipes and other components from multiple countries. While the entire pipe spool has one tariff classification, the country of origin of the components of the pipe spool is unique to each component (See NY N284041, dated March 31, 2017, NY N262359, dated April 6, 2015, and NY N245495, dated September 17, 2013 see also HQ H005109, dated April 12, 2007).

In order to properly report the applicable Section 232, Section 301 and/or AD/CVD on each pipe spool component, filers are required to break out each component of the pipe spool by the country of origin on a separate entry/entry summary line. For example, if all the components have the same country of origin, the filer reports the pipe spool on one line. However, if either:

(a) the pipe spool has components from two or more countries of origin (this will allow reporting of the correct country of origin, and also allow reporting of the Section 232 duties and quotas, and Section 301 duties, based on the country of origin); and/or
(b) the pipe spool has components that are subject to AD/CVD requirements;
the filer reports the components on multiple lines, as needed, to reflect the different country and requirements (including Sections 232, 301 and/or AD/CVD requirements).

When a pipe spool contains more than one pipe, the components that provide a pipe spool with its essential character (i.e., its tariff classification) are the pipes that predominate by weight and value. Each entry/entry summary line should use the same tariff classification as the classification for the entire pipe spool.

When reporting components on separate entry/entry summary lines, filer should use the actual value of the component.

UPDATE:

Where the HTS classification requires a license under the Steel Import Monitoring and Analysis (SIMA) Program, a license is required for each entry summary line reporting that HTS classification.  Where the license is required but not reported for an entry summary line for an HTS, ACE will reject the entry filing.  Accordingly, importers must obtain from Commerce, and report at the time of entry summary filing, a steel import license number for every entry summary line of a pipe spool where the HTS requires a steel import license.

For example, where the HTS of the pipe spool requires a steel import license:

• if the pipe spool has one country of origin and is reported on one entry summary line, importers should apply to Commerce for one license.
• if the pipe spool has components from two or more countries of origin, the filer must provide a license number for each country of origin. 

To identify whether a particular HTS requires a SIMA license, see https://www.trade.gov/steel-products-hts-codes for the list of HTS codes requiring a steel import license.  For guidance regarding how to apply for a SIMA license, and the rules regarding use of such license please see https://www.trade.gov/us-industry-licensing.

The attached spreadsheet provides examples of the correct and incorrect entry summary reporting for a pipe spool.

In compliance with CBP invoice requirements, the commercial invoice must include, among other things, a detailed description of the merchandise, materials, value, quantity, HTSUS, and country of origin (See 19 CFR 141 Subpart F for full requirements). The invoice and supporting documents must provide sufficient information to determine, among other things, the value, quantity, HTSUS, and country of origin of the components of the pipe spool.

For further guidance, contact your Center of Excellence and Expertise, or request a ruling from CBP’s Office of Regulations and Rulings at https://www.cbp.gov/trade/rulings.  For questions regarding steel licenses, please contact the Department of Commerce at Steel.License@trade.gov.