CLA-2 OT:RR:CTF:TCM H021135 HkP
Mr. Jay Joo, Managing Director
HMA Inc.
1411 West 190th Street, Suite 470
Gardena, CA 90248
RE: Revocation of NY N018044; hollow billets; Additional U.S. Note 1 to Section XV
Dear Mr. Joo:
This is in response to your letter to the National Commodity Specialist Division of U.S. Customs and Border Protection (“CBP”) dated December 17, 2007, requesting reconsideration of New York Ruling Letter (“NY”) N018044, issued to your company on October 17, 2007. At issue in that ruling was the tariff classification of a non-alloyed cast aluminum “hollow billets” under the Harmonized Tariff Schedule of the United States (“HTSUS”). CBP classified the merchandise under heading 7608, HTSUS, as aluminum tubes or pipes because we were of the view that the product was not “unwrought”, as that term is defined in Additional U.S. Note 1 to Section XV, HTSUS, and therefore was precluded from classification in heading 7601, HTSUS. You believe that the correct classification is under heading 7601, HTSUS, which provides for unwrought aluminum. Your letter was forwarded to this office for a response.
In reaching our decision we have taken into consideration the information contained in the short video of the manufacturing process of your product that you submitted with your request. For the reasons set forth in this ruling, we hereby revoke NY N018044.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation was published on February 5, 2009, in the Customs Bulletin, Volume 43, No. 7. One importer contacted CBP in response to the notice regarding the proposed revocation’s impact on a ruling issued to the importer by CBP but did not submit comments on the proposed revocations.
FACTS:
In NY N018044, the product at issue was described as a non-alloyed cast aluminum pipe with an outside diameter ranging from 7 to 11 inches and an inside diameter ranging from 3 to 5 inches. The video submitted demonstrates that molten aluminum is cast in a cylindrical mold with a solid core. The resultant castings are, therefore, hollow. After trimming the ends, the castings are cut into shorter lengths.
According to your submission, the casting process for the merchandise, which you describe as “hollow billets,” is the same as billets and ingots. The only difference is the size of the mold and the fact that the molds are “tube-shaped”. After the product is pulled from the mold and cut to length it is not further processed. After importation, the product will be re-melted to make wheels. You state that the reason hollow billets are made instead of full billets or ingots is because hollow billets save money and time during the re-melting process. You describe your merchandise as “raw material”.
ISSUE:
Whether the aluminum “hollow billets” can be classified as unwrought aluminum under heading 7601, HTSUS.
LAW AND ANALYSIS:
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 then be applied in order.
The HTSUS provisions under consideration are as follows:
7601 Unwrought aluminum
7608 Aluminum tubes and pipes
Note 1(e) to Chapter 76 provides, in pertinent part:
Tubes and pipes
Hollow products, coiled or not, which have a uniform cross section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. Products with a rectangular (including square), equilateral triangular or regular convex polygonal cross section, which may have corners rounded along their whole length, are also to be considered as tubes and pipes, provided the inner and outer cross sections are concentric and have the same form and orientation. Tubes and pipes of the foregoing cross sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings.
CBP previously rejected your suggested classification under heading 7601, HTSUS, as unwrought aluminum because “the term unwrought, as defined in Additional U.S. Note 1, Section XV, HTSUS, excludes drawn or extruded products, tubular products or cast or sintered forms which have been machined or processed otherwise than by simple trimming, scalping or descaling.”
However, on further reflection, CBP now believes that cast billet may meet the terms of the definition of “unwrought” set forth in Additional U.S. Note 1, Section XV. In full, Additional U.S. Note 1, Section XV, states:
For the purposes of this section, the term “unwrought” refers to metal, whether or not refined, in the form of ingots, blocks, lumps, billets, cakes, slabs, pigs, cathodes, anodes, briquettes, cubes, sticks, grains, sponge, pellets, flattened pellets, rounds, rondelles, shot and similar manufactured primary forms, but does not cover rolled, forged, drawn or extruded products, tubular products or cast or sintered forms which have been machined or processed otherwise than by simple trimming, scalping or descaling.
Other sources support this definition of “unwrought”. International Standard ISO 3134/2, Light metals and their alloys – Terms and definitions – Part 2: Unwrought products explains that the term “unwrought product” is a “[g]eneral term for products obtained by smelting or refining or casting processes, for example, ingots for rolling, ingots for extruding, ingots for forging and ingots for remelting.” Id. at 2.1. The Oxford English Dictionary defines the term “unwrought”, in relevant part, as follows: “2. Not formed or fashioned by being worked on; esp. of materials (as fabrics, stone, or metals): Still in a crude, raw, rude, or natural state; not worked into a finished condition.” Based on the above, we find that heading 7601, HTSUS, provides for, without limitation, aluminum that has not been worked into a finished condition.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the HTSUS at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989).
EN 76.01 provides, in relevant part:
This heading covers unwrought aluminum in the liquid state, in blocks, ingots, billets, slabs, notched bars, wore bars, or similar forms obtained by casting electrolytic aluminum or by remelting metal waste or scrap. These goods are generally intended for rolling, forging, drawing, extruding, hammering or for remelting and for casting into shaped articles.
….
This heading also covers certain cast or sintered bars, etc. (see the Explanatory Note to heading 74.03 which applies, mutatis mutandis, to this heading).
EN 74.03 provides, in relevant part:
This heading further covers cast and sintered slabs, bars, rods and ingots, etc., provided they have not been worked after production otherwise than by simple trimming or de-scaling (to remove the set or top surface consisting largely of cuprous oxide) or by shaving, chipping, grinding, etc., to eliminate setting or other casting defects which have been machined on one surface for inspection purposes (quality control).
EN 76.08 provides, in relevant part:
Chapter Note 1(e) defines tubes and pipes. The tubes and pipes of this heading may be manufactured by the following processes:
….
(d) by casting
….
The tubes and pipes of this heading are used for many purposes, e.g. as pipelines for oil or water, as conduits for electrical wiring, in the manufacture of furniture, heat exchanges, structures.
Based on the above, we find that heading 7601, HTSUS, provides for cast, remelted or other aluminum that has not been worked into a finished condition and which may be for use in a manufacturing process.
In light of the manufacturing process depicted in the submitted video, we find that the product at issue has been manufactured by casting and has not been machined or further processed but simply trimmed and cut to length. As such, we find that the hollow billet is “unwrought” as required by the text of heading 7601, HTSUS. In addition, based on the submitted information, the product is intended for remelting or for casting into shaped articles as explained by EN 76.01.
HOLDING:
By application of GIR 1, the hollow billet of aluminum is classified under heading 7601, HTSUS. It is specifically provided for in subheading 7601.10.60, HTSUS, which provides for: “Unwrought aluminum: Aluminum, not alloyed: Other.” The 2008 column one, general rate of duty is Free.
EFFECT ON OTHER RULINGS:
NY N018044, dated October 17, 2007, is hereby revoked.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division