CLA-2-CO:R:C:F 952452 K
TARIFF No.: 2844.20.0030
Patrick D. Gill, Esq.
Rode & Qualey
Attorneys At Law
295 Madison Avenue
New York, New York 10017
RE: Tariff Classification of Enriched Uranium Hexafluoride and
Country of Origin
Dear Sir:
This is in reply to your request of August 11, 1992, on behalf
of your client for a prospective ruling as to the tariff
classification of enriched uranium hexafluoride and whether it is
a product of Russia or a product of a European Community country.
FACTS:
Uranium ores and uranium ore concentrates from Russia are
shipped to countries in the European Community and used to make
enriched uranium hexafluoride (UF6) which will be imported as a gas
in cylinders and after importation processed into ceramic pellets
for use in nuclear fuel assemblies.
The crude product, uranium ores or concentrates, from the
refineries that is shipped from Russia to a European Community
country is purified to a degree usable in nuclear applications.
The purified material is converted to uranium dioxide. Uranium
dioxide is either used directly (i.e. reactor ceramics) or
converted to uranium tetrafluoride. Uranium tetrafluoride may be
reduced to uranium metal or fluorinated to uranium hexafluoride
(basic compound for isotope separation). The merchandise as
processed in the European Community country and to be imported into
the United states is enriched uranium hexafluoride.
ISSUE:
The issue concerns substantial transformation and whether
-2-
the merchandise, enriched uranium hexafluoride, is a product of
Russia or a product of a European Community country for tariff
purposes.
LAW AND ANALYSIS:
Enriched uranium hexafluoride is classifiable in subheading
2844.20.0030, Harmonized Tariff Schedule of the United States
(HTSUS), free of duty under both the column 1 and 2 rates of duty.
Nevertheless, we are called upon to rule whether the merchandise
is subject to the column 1 or 2 rates of duty under the substantial
transformation doctrine because of an antidumping duty
determination by the Department of Commerce. This decision is not
a definitive ruling for the interpretation of the scope of any
determinations by the Department of Commerce for this merchandise.
If merchandise is shipped from one country to another country
and there used in a manufacture which transforms the merchandise
into a new and different article of commerce with a new name,
character, and use, the merchandise is considered as a product of
the second country for tariff purposes. See section 134.1(b) of
the Customs Regulations for a definition of the term "country of
origin".
In this case, raw material, uranium ores or concentrates from
Russia were shipped to a European Community country and then
processed into a new and different article of commerce, enriched
uranium hexafluoride, which has a new name, and a new character
and use. Accordingly, the test for substantial transformation has
been met and the merchandise is a product of the European Community
country.
HOLDING:
Enriched uranium hexafluoride manufactured in a European
Community country with the use of uranium ores or concentrates from
Russia is a product of that European Community country, and is
classifiable under the column 1 rates of duty, subheading
2844.20.0030, Harmonized Tariff Schedule of the United States.
Sincerely,
John Durant, Director
Commercial Rulings Division