CLA-2-76:OT:RR:NC:N1:113
Mr. David M. Spooner
Barnes & Thornburg LLP
1717 Pennsylvania Avenue, N.W.
Suite 500
Washington, DC 20006-4623
RE: The tariff classification of aluminum alloy sacrificial anodes from China
Dear Mr. Spooner:
In your letter dated September 14, 2018, on behalf of your client CMP Global LLC, you requested a tariff classification ruling. Samples and photographs of the five types of aluminum anode products were submitted for our review.
The products under consideration are described as five types of non-commercial aluminum alloy sacrificial anodes designed for use in the pleasure craft industry. The anodes are manufactured by pressure die-casting and are predominantly composed of aluminum. You stated in your letter that “They come in a variety of shapes and sizes, and each shape and size is designed to be attached as a part to a particular underwater metal component of the pleasure craft, i.e. engine, propeller, rudder, shaft, or hull…the aluminum anodes serve one primary purpose, which is to provide passive cathodic protection and to prevent corrosion of the boat’s underwater metal components. By attaching the aluminum anode to the boat’s underwater metal components, the aluminum anode (i.e., the sacrificial metal) corrodes instead of the protected vessel component…Sacrificial anodes play a key role and are essential in the maintenance of a boat.”
The submitted samples include Item 12. CM762145A, Item 13. CM806190A and Item 14. CM821629CA which will be attached to the propulsion engine, Item 9. CMR03AL which will be attached to the rudder, Item 10. CMX05AAL which will be attached to the shaft, Item 11. CMDIVERMINIA which will be attached to the hull, and Item 15. CMPNAC which will be attached to the propeller.
Consideration was given to classifying Items 12, 13 and 14 in heading 8409, Harmonized Tariff Schedule of the United States (HTSUS), as parts of marine propulsion engines, as you suggested. Based on the description provided in your letter, the aluminum alloy sacrificial anodes are optional to the engine and are attached on the outer surface of the engine. It has been held that a part of an article is something that is an integral, constituent or component part necessary to the completion of the article with which it is used. See United States v. Willoughby Camera Stores, 21 C.C.P.A. 322 (1933). A marine propulsion engine is complete without the anodes at issue, and is not required to have the anodes present in order to function. As a result, classification of the aluminum alloy anodes in heading 8409, HTSUS, is precluded.
You also mentioned a possible classification of the aluminum alloy anodes in heading 8543, HTSUS, as parts of electrical machines. However, the anodes under review are passive anodes and have no electrical function, connection, or interaction. Therefore, classification of the aluminum alloy anodes in heading 8543, HTSUS, is also precluded.
The applicable subheading for the aluminum alloy sacrificial anodes will be 7616.99.5160, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of aluminum, other, other, other, other, castings. The rate of duty will be 2.5 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a number of steel and aluminum products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.03 for aluminum. Products classified under subheading 7616.99.5160, HTSUS, may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 subheading applicable to your product classification in addition to the Chapter 72, 73 or 76 subheading listed above. The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 subheadings.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974).
Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 7616.99.5160, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 7616.99.5160, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division