CLA-2:CO:R:C:M 088175 MBR
Curtis B. Carson
HARCO Technologies Corporation
P.O. Box 721
Medina, Ohio 44258
RE: Modification of HQ 086552; Impressed Current Anodes for
Cathodic Protection; Electrical Machines and Apparatus;
8543
Dear Mr. Carson:
This is in reply to your letter of October 31, 1990,
requesting reconsideration of HQ 086552 (dated March 16, 1990),
regarding classification of Impressed Current Anodes for Cathodic
Protection made from high silicon iron castings, imported from
the U.K., under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).
FACTS:
The articles in issue here are described as AISI/ASTM A 518
Impressed Current Anodes for Cathodic Protection, made of high
silicon iron castings, in tubular and solid configuration. Both
are made by the centrifugal casting method, and contain 14.5
percent silicon, 4.5 percent chromium, and less than 1 percent
each of manganese and carbon, by weight. This alloy is said to
provide maximum electrical conductivity. As imported, the
tubular articles are unmachined hollow castings with plain ends,
typically from 2 inches to 5 inches in outside diameter and 5
feet to 8 feet long. The solid articles are round iron rods of
solid cross section with dimensions similar to the tubular
castings, except that the diameter of one end is enlarged and
hollowed out to form a 2 inch aperture to receive a cable or
lead wire.
After importation, a copper core conductor cable (typically
10 ft. long) is inserted into the casting. The cable is secured
in the open end of the anode by means of plywood end caps with
drilled holes for the cable, or metal spacers, or dielectric
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insulation packing or backfill, or polyethylene plugs and epoxy
coating.
In use, the completed anodes are connected to a transformer/
rectifier or other direct power source to electrolytically
restrict the development of rust and corrosion in underground
storage tanks and piping systems, submerged structures, ships'
hulls, and in a variety of above-ground applications where high
moisture levels are found.
New information has been obtained from the Customs
Laboratory which found that: "The sample is a casting made of
alloyed iron (neither cast-iron, nor steel). It is not
malleable."
ISSUE:
How are nonmalleable high silicon iron castings designed as
Impressed Current Anodes for Cathodic Protection classified,
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA)?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI
1 states, in pertinent part:
...classification shall be determined according to the
terms of the headings and any relative section or chapter
notes...
HQ 086552, dated March 16, 1990, held that the tubular
castings were classifiable under subheading 7304.59.80, HTSUSA,
which provides for: "[t]ubes, pipes and hollow profiles,
seamless, of iron (other than cast iron) or steel: [o]ther:
[o]ther: [o]ther: [o]ther." The solid castings were held
classifiable in subheading 8543.90.80, HTSUSA, which provides
for: "[e]lectrical machines and apparatus, having individual
functions, not specified or included elsewhere in this chapter:
[p]arts: [o]ther."
Heading 7304 is in Section XV. However, Section XV, Legal
Note 1. (f), states:
This section does not cover:
(f) Articles of section XVI (machinery, mechanical
appliances and electrical goods)
Corrosion is an electro-chemical process. In use, the
anodes are connected to a transformer/rectifier or other direct
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power source to electrolytically restrict the development of
rust and corrosion in underground storage tanks, piping systems,
submerged structures, ships' hulls, and in a variety of
above-ground applications where high moisture levels are found.
This particular alloy is designed specifically for this purpose.
You have submitted substantial additional information
regarding the design, composition, and function of impressed
current anodes. We are convinced that due to the composition of
these anodes they are designed specifically as impressed current
anodes and due to their high silicon content are too brittle to
withstand machining into any other article. Furthermore, the
ASTM A 518 "Standard Specification for Corrosion-Resistant High-
Silicon Iron Castings" states that "Grade 3" is recommended for
impressed current anodes. The submitted sample is within the
parameters of "Grade 3" as delineated by the ASTM. See The
SERVCO Company v. United States, 68 Cust. Ct. 83, C.D. 4341
(1972).
Therefore, both the tubular and the solid casting
impressed current anodes are classifiable in heading 8543.
Furthermore, since the impressed current anodes, as imported,
only require an electrical connector for a power source, we are
of the opinion that these anodes are not classifiable under the
parts provision, but are properly classifiable under the
provision for electrical apparatus.
HOLDING:
Both the solid and the tubular casting impressed current
anodes are classifiable under subheading 8543.80.90, HTSUSA,
which provides for: "[e]lectrical machines and apparatus, having
individual functions, not specified or included elsewhere in this
chapter: [o]ther machines and apparatus: [o]ther." The rate of
duty is 3.9 percent ad valorem.
EFFECT ON OTHER RULINGS:
In order to insure uniformity in Customs classification of
this merchandise and eliminate uncertainty, we are modifying HQ
086552 to reflect the above classification, effective with the
date of this letter.
This ruling letter is a modification of HQ 086552, dated
March 16, 1990, under authority of Section 19 CFR 177.9(d)(1).
It is not to be applied retroactively to HQ 086552 (19 CFR
177.9(d)(2)), and will not affect past importations of your
merchandise. However, HQ 086552 will not be valid precedent for
future transactions.
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We recognize that pending transactions may be adversely
affected by this modification. If such a situation arises, you
may notify this office and apply for relief from the binding
effects of this decision, as may be warrented by the
circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division