MAR-05 RR:CR:SM 562438 NL
Port Director
U.S. Customs Service
Port of Newark, New York
1210 CORBIN STREET ELIZABETH, NJ 07201
RE: AFR Protest No. 4601-020100125; Eligibility for Tariff Treatment under subheading 9802.00.60, HTSUS
Dear Port Director:
This office has considered the application for further review filed on behalf of GE Power Systems in the above-referenced protest. The decision of this office follows.
FACTS:
The merchandise in question is turbine wheel forgings and spacers. At liquidation on October 12, 2001, Customs officials classified the merchandise under subheading 8411.99.9060, HTSUS as “Turbojets, turbopropellers and other gas turbines, and parts thereof:… Parts…Other…Other…Parts of nonaircraft gas turbines…Other,” dutiable at 2.4% ad valorem.
The Protestant claims that the merchandise was eligible for tariff treatment under subheading 9802.00.60, HTSUS, and seeks reliquidation under that provision. Reduced duty treatment is available under that subheading for
[a]ny article of metal (as defined in U.S. note 3(d) of this subchapter) manufactured in the United States or subjected to a process of manufacture in the United States, if exported for further processing, and if the exported article as processed outside the United States, or the article which results from the processing outside the United States, is returned to the United States for further processing.
The metals eligible are specified in U.S. Note 3(d) of subchapter II of Chapter 98, HTSUS. The documentary and other procedural requirements are set forth in §10.9, Customs Regulations (19 CFR §10.9).
In support of the Protestant’s claim of eligibility it is stated that:
U.S. origin ingots made from a nickel and chromium-based alloy were the starting material. This alloy is among the metals specified in U.S. Note 3(d) of subchapter II of Chapter 98, HTSUS;
The ingots were exported to France where they were processed and machined into finished forgings;
The completed forgings were further machined and broached in the U.S. to specification for use in the manufacture of gas turbines;
The operations in France and subsequent operations in the U.S. qualify as “further processing within the meaning of subheading 9802.00.60, HTSUS;
Upon entry, the Protestant deposited duties on the full invoice value of the merchandise, plus additions for selling commissions paid by the French processor to its U.S. related-party agent. The invoice price reflected the total value of the U.S. ingots exported to France, plus the total processing value for manufacture of forgings from ingots;
The Protestant has submitted completed Foreign Processing Declarations and Importer Endorsements as required under 19 CFR §19.9(a).
ISSUE:
Did the importer demonstrate that the merchandise was eligible for tariff treatment under subheading 9802.00.60?
LAW & ANALYSIS:
There is nothing in the protest record to indicate the nature of Customs’ reasons, if any, for refusing tariff treatment under subheading 9802.00.60.
Review by this office of the facts presented shows that the Protestant’s claim was supported by evidence that the initial materials were as specified in U.S. Note 3(d) to subchapter II of Chapter 98, HTSUS, that further processing was performed outside the U.S. and also after return of the merchandise to the U.S., and that the Protestant satisfied all documentary and procedural requirements as set forth in §10.9, Customs Regulations and elsewhere. It therefore appears that treatment under subheading 9802.00.60 was properly claimed.
HOLDING:
This protest should be ALLOWED.
In accordance with Section 3A(11)(b) of Customs Directive 099 3550065, dated August 4, 1993, this decision and the Customs Form 19 are to be mailed to the protestant no later than sixty days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel and to the public on the Customs Home Page on the World Wide Web at www.customs.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon
Acting Director
Commercial Rulings Division