OT:RR:CTF:CPMM H306409 CKG
Dear Mr. Totaro:
This ruling is in response to your letter, dated October 10, 2019, requesting a binding ruling on the tariff classification of a spent catalyst under the Harmonized Tariff Schedule of the United States (HTSUS). Your request was forwarded by the National Commodity Specialist Division to this office for a response.
FACTS:
The instant product is identified as a spent hydrotreating catalyst. Prior to use, the catalyst begins as a NiMo alumina supported catalyst, consisting of a support of aluminum oxide impregnated with molybdenum and nickel compounds. The original catalyst is then used to drive a chemical reaction, specifically to create refined petroleum products from crude oil. The original catalyst is spent in the ensuing reaction, as the reaction sites on the catalyst support are blocked by metal and/or carbon during the reaction. What remains after the catalyst is spent is the instant product: a waste product containing residue of primarily aluminum, molybdenum, vanadium and nickel with aluminum predominating by weight. The spent catalyst is processed after importation to recover the remaining molybdenum, vanadium and nickel.
ISSUE:
Whether the spent catalyst is classified in subheading 2620.40, HTSUS, as a residue containing mainly aluminum, or as an “other” residue containing metal.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS, in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level.
The HTSUS provisions under consideration are as follows:
2620: Slag, ash and residues (other than from the manufacture of iron or steel), containing
arsenic, metals or their compounds:
2620.40: Containing mainly aluminum:
Other:
2620.99: Other:
2620.99.10: Containing mainly vanadium…
Note 3 to Chapter 26 provides as follows:
3. Heading 2620 applies only to:
Slag, ash and residues of a kind used in industry either for the extraction of metals or as a basis for the manufacture of chemical compounds of metals, excluding ash and residues from the incineration of municipal waste (heading 2621); and
Slag, ash and residues containing arsenic, whether or not containing metals, of a kind used either for the extraction of arsenic or metals or for the manufacture of their chemical compounds.
* * * *
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the HTSUS. While not legally binding or 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 at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The Explanatory Note to heading 2620 provides, in pertinent part, as follows:
This heading covers slag, ash and residues (other than those of heading 26.18, 26.19 or 71.12) which containing metals, arsenic (whether or not containing metals) or their compounds, and which are of a kind used in industry either for the extraction of arsenic or metals or as a basis for the manufacture of their chemical compounds. They result from the treatment of ores or intermediate metallurgical products (such as mattes) or from electrolytic, chemical or other processes which do not involve the mechanical working of metal. Waste which derives from the mechanical working of metal, or scrap which consists of worn out or broken metal articles is excluded (Section XIV or XV). On the other hand, scalings, which are essentially oxides although deriving from the mechanical working of non ferrous metal, also fall in this heading.
The heading includes :
(8) Spent catalysts usable only for the extraction of metal or for the manufacture of
chemicals.
* * * *
Heading 2620 provides for “residues (other than from the manufacture of iron or steel), containing arsenic, metals or their compounds”. Note 3 to Chapter 26 as well as the Explanatory Note to heading 2620 further specify that the residues of this heading must be of a kind used for the extraction of metal or for the manufacture of chemicals. As the instant residue is a spent catalyst used for the extraction/recovery of metals, it falls within the scope of heading 2620, HTSUS, and is classified therein.
As regards the subheading classification under heading 2620, you further state that while the spent catalyst is primarily used for the recovery of vanadium, molybdenum and nickel, aluminum is consistently present in greater concentrations (on the basis of weight) than any other metal. The assay report you provided to the Port confirms that aluminum predominates by weight over all other metals in the spent catalyst. As the spent catalyst contains mainly aluminum, it is classified in subheading 2620.40, HTSUS.
HOLDING:
The spent catalyst is classified in heading 2620, HTSUS, specifically subheading 2620.40.0030, HTSUS, which provides for “Slag, ash and residues (other than from the manufacture of iron or steel), containing arsenic, metals or their compounds: Containing mainly aluminum: Vanadium bearing materials.” The 2019 column one, general rate of duty is Free.
Duty rates are provided for convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
Sincerely,
Allyson Mattanah, Chief Chemicals, Petroleum, Metals and Miscellaneous Branch