CLA-2 CO:R:C:G 081606 JAS
Mr. Kent Johnston
Nissho Iwai American Corporation
Five Post Oak Park, Suite 2670
Houston, Texas 77027
RE: Tariff classification of nickel plated perforated steel
steel strip
Dear Mr. Johnston:
In your letter of October 19, 1987, you inquire as to the
tariff classification of certain nickel plated perforated steel
strip from Japan. The strip will be further processed after
importation and used as positive and negative grids in re-
chargeable nickel cadmium batteries.
FACTS:
The merchandise is cold rolled steel strip, half hard and
full hard, 0.08mm x 300mm and 0.10mm x 300mm, in coils, which
has been fed through a press where punch and die groups per-
forate the strip over its entire surface with numerous tiny
holes. The strip is then nickel plated, 3 microns minimum on
each side, and rewound on coils. This is its condition as
imported.
After importation, the coils are unreeled and the perfor-
ated strip is subjected to electrochemical processes to deposit
active nickel and cadmium oxides. The strip is then cut into
2-inch lengths, connecting tabs are welded to them, and the
resulting unit placed in a battery can. The can is then
charged with electricity.
ISSUE:
Whether the coiled strip is classifiable as part of a
battery, in item 683.15, Tariff Schedules of the United States
(TSUS), or according to component material in chief value.
- 2 -
LAW AND ANALYSIS:
Perforation of strip prior to importation is a process
which advances the strip beyond the status of a basic shape or
form of iron or steel. See headnote 1, part 2, schedule 6,
TSUS. Although a material is precluded from classification in
part 2 of schedule 6, it is not necessarily classifiable as a
part of an article. Court cases on the classification of steel
strip imported in material lengths indicate that to be clas-
sifiable other than as a material the character and identity of
individual articles must be fixed with certainty at time of
importation. The merchandise must be commercially and practi-
cally dedicated to only one use, with no additional post-
importation processing required except cutting to length.
The post-importation electrochemical processing represents
a significant step in the manufacture of the article and is
believed critical to establishing the character and identity of
the merchandise. The processing after importation is not a
mere cutting to length, such as was considered by the court in
Heraeus-Amersil v. United States, Slip Op. 86-41 (Ct. Int'l
Trade, decided April 18, 1986). In that case, continuous
lengths of metal contact tape were merely cut to length after
first being welded to contact springs. The court held that the
metal tape was classifiable as parts of electrical relays,
rather than as a material (wire). The imported perforated
strip in this case is distinguishable because it is processed
beyond mere cutting to length. Therefore, the perforated strip
is not classifiable as parts of batteries.
HOLDING:
The nickel coated perforated steel strip in coils is clas-
sifiable under the provision for other articles of iron or
steel, not coated or plated with precious metal, in item
657.2580, TSUSA, dutiable at the rate of 5.7 percent ad
valorem.
The proposed Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), is scheduled to replace the TSUS as
the tariff code of the United States. The HTSUSA subheading
applicable to this merchandise is 7326.90.90, other articles of
iron or steel, other. However, if there are changes in the
HTSUSA before its enactment, this advice may not continue to
apply.
Sincerely,
John Durant, Director
Commercial Rulings Division
6cc: Area Director, New York Seaport (NIS 112 & 117)
1cc: District Director, Houston Texas
1cc: Fraud Center
1cc: John Durant
JASeal:jaj:7/26/88