OT:RR:CTF:ER
H204626 MES
Mr. Hobyung Yi
Nissin International Transport USA, Inc.
172047 Baislet Blvd.
Jamaica, NY 11434
RE: Temporary importation under bond of polytetrafluoroethylene (PTFE) for irradiation
Dear Mr. Yi:
This is in response to your request for a ruling filed with U.S. Customs and Border Protection (“CBP”) Headquarters, on behalf of your client, Sasaki Chemical Industry Co., Ltd. (Sasaki), which we received on February 14, 2012. You request a ruling regarding whether polytetrafluoroethylene (PTFE) may be imported for irradiation under a temporary importation under bond (TIB).
FACTS:
In your January 4, 2012 letter, you state that PTFE is brought into the United States from Japan to be irradiated at a U.S. facility specializing in irradiating materials. You state that the irradiation procedure will reduce the size of the individual particles, but that the PTFE will look the same and maintain the same essential nature after the irradiation procedure. Reduction of the particle size will enable the PTFE to be ground down in Japan, which will allow for different applications of the PTFE from what was previously possible. You state that the smaller size granules of PTFE are required for certain products and situations where larger size granules cannot be used efficiently. Through correspondence on October 3, 2012, you explain that the PTFE must be irradiated before the grinding process or else it would lead to machine failure.
ISSUE:
You inquire whether subjecting the PTFE to radiation constitutes a process for purposes of a TIB under subheading 9813.00.05, HTSUS.
LAW AND ANALYSIS:
In order to import goods under TIB, the importer must show that the article is to be repaired, altered or processed. In this case, Sasaki will be importing PTFE and subjecting it to radiation, a procedure that will break down the individual particles into smaller-sized particles, thus allowing for different applications than were previously possible. This qualifies as a “process” under a TIB as explained below.
General Note 1, HTSUS, dictates that all merchandise imported into the United States is subject to duty unless specifically exempted therefrom. Pursuant to U.S. Notes 1(a) and (c) of Subchapter XIII of Chapter 98, HTSUS, which contains subheading 9813.00.05, articles to be repaired, altered or processed, including processes that result in articles manufactured or produced in the United States, may enter into the United States temporarily free of duty per a Temporary Importation Under Bond, for exportation within one year from the date of importation. See 19 CFR § 10.37. This one year period may be extended for one or more additional periods, which when added to the initial period may not exceed three years. Id. The imported merchandise may not be imported for the purpose of a sale or sale on approval. See U.S. Note 1(a) of Subchapter XIII, Chapter 98, HTSUS.
Articles may be entered under subheading 9813.00.05 HTSUS only if they are to be “repaired, altered or processed.” In HQ 224661, dated January 11, 1994, which pertained to subheading 9813.00.05, we stated that “[t]he processing can be a relatively minor procedure or extensive enough to be considered a manufacture or production.” Thus, the term is broad and would encompass a minor procedure. CBP previously relied upon the following definition of the word “process”:
process ... to subject to a particular method, system, or technique of preparation, handling, or other treatment designed to effect a particular result: put through a special process: (1) to prepare for market, manufacture, or other commercial use by subjecting to some process ... (2) to make usable by special treatment .… See HQ 229970 (Aug. 11, 2003) (relying upon the definition in Webster’s Third New International Dictionary (unabridged, 1966)).
Therefore, if irradiating the PTFE effects a particular result, such as enabling it to be ground down, then it would qualify as a “process.”
Although our prior rulings do not specifically address irradiation as a process, we have addressed minor processes that qualify for TIB treatment. On October 15, 1991, we held that a “process” for TIB purposes could be a melting procedure. See HQ 223003. In that case, cocoa butter substitutes were imported at a reduced temperature in a solid or semi-solid state, melted in the United States, and then exported. And on April 9, 2002, we held that a “process” for TIB purposes could be a slitting procedure. See HQ 228509. In that case, the processing of steel, which involved only slitting and did not alter the characteristics of the imported steel, constituted a process. These rulings illustrate how minor processing, even those not altering the basic properties of the imported article, can satisfy the TIB provisions of 9813.00.50.
In this case, the PTFE is subjected to radiation, which alters the physical properties to permit it to be further ground, thus enabling it to be suitable for different applications than were previously possible. As mentioned above, there are certain products or situations where larger size granules of PTFE cannot be applied efficiently and smaller size granules are required. However, before the larger size granules of PTFE can be ground down to the appropriate size, the irradiation procedure must first take place. Therefore, the irradiation procedure described in your letter would constitute a “process” for TIB purposes.
It is important to note that your letter is silent on the requisite intent to export or destroy the irradiated PTFE within one year from the date of importation or within the extension for exportation time period discussed in 19 CFR 10.37. Regulations concerning TIB procedures for entry, eligibility, exportation, and bond cancellation are provided in 19 CFR 10.31 through 10.40.
HOLDING:
The operation performed on the imported merchandise, subjecting the PTFE to radiation, constitutes a “process” for the purposes of a TIB under subheading 9813.00.05, HTSUS. Therefore, entry under TIB under 9813.00.05 is permissible. This decision is limited to the specific facts set forth herein.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division