CLA-2-85:RR:NC:MM:109 I83977
Mr. Jim McNamara
Att’y-In-Fact
Maqui Logistics
5964 East 14th Street
Suite B
Brownsville, TX 78521
RE: The tariff classification of Tantalum Anodes at various stages of production from Mexico
Dear Mr. McNamara:
In your letter dated June 25, 2002, you requested a tariff classification ruling on behalf of Kemet Electronics, Inc. of Greenville, South Carolina.
The merchandise is described in your letter as Tantalum Anodes. You have requested the classification of this merchandise after undergoing various stages of manufacture. There are five key processes performed. The five processes are as follows:
STEP 1
Anode Manufacturing - Consists of blending tantalum powder with binder material. The blended tantalum powder and binder are compacted into an anode with tantalum leadwire pressed into the anode. The pressed anode with binder and tantalum leadwire are put through a delube process in which heat is applied in a vacuum to vaporize and remove the binder material from the pressed anode. The delubed anode undergoes a sintering process where high temperature and vacuum bond tantalum particles together and purify the anode producing a sintered anode. (As an alternate to the wire attachment method, the tantalum wire is welded to presintered anodes.) At the end of this stage of production, the tantalum anode lacks the essential character of a capacitor because it does not contain two conductive elements separated by a dielectric material. Therefore, this is not yet considered a capacitor.
STEP 2
Electro–Chemical Processing - In this stage the sintered anode initially goes through a process called racking in which washers are punched from teflon tape and applied to the sintered anodes. The sintered anodes are welded to a process bar that serves as the carrier throughout the Electro-Chemical Process. In the next stage, the sintered anodes are placed in a formation tank. A Tantalum Pentoxide layer or dielectric is formed by applying current and DC voltage through an electrolyte bath producing an anode/dielectric. The anode/dielectric is then put through a carousel wash where electrolyte residue is removed. Next, the sintered anode/dielectric is put on an impregnation conveyor. This stage converts manganous nitrate to manganese dioxide through a series of dips and heat applications to form the negative plate, an anode/dielectric/cathode. At the next station, the carbon dip station, an oxide free electrical contact between the anode/dielectric/cathode and the next layer (silver paint) is applied producing a component with a (one) conductive carbon layer. In the last stage of this step, silver paint is added to the component, which provides a coating of high electrical conductivity, producing a component with Ag layer. At the end of this stage of production, the component with Ag layer contains the requisite dielectric material as well as one (the negative) electrode. However, it still lacks the positive electrode (terminal). As such, it does not yet possess all of the electrical components necessary to impart the essential character of a capacitor, that being two conductive elements separated by a dielectric material. Therefore, it is not yet considered a capacitor.
STEP 3
Assembly - In this step, the assembly machine attaches the positive electrode (terminal) to the component with Ag layer by a conductive silver adhesive. At this point, the tantalum anode is still incapable of functioning as a capacitor. However, it does contain the requisite dielectric material as well as the two conductive elements (the negative and positive electrodes), thus meeting the definition of a capacitor. As such, it does contain the electrical components that constitute the essential character of a capacitor. Therefore, at this stage, the tantalum anode is considered a capacitor.
STEP 4
Moulding - In this step, the Auto Mold machine encapsulates each assembled tantalum anode with a molded protective case. This fourth step is merely a finishing step of the final manufacturing process of the electrically completed tantalum anode, which already gained the characteristic/essential character of a capacitor in Step 3. As such, the tantalum anode is, at this point, considered a capacitor.
STEP 5
Laser/Mark/Test/Pack/Ship - This process the tantalum anodes undergo deflashing, laser marking, lead singulation, conditioning/screening, forming and taping, placement into finished stores and shipping. At this point, the tantalum anode still imparts the essential character of and is considered a capacitor.
The applicable subheading for the Tantalum Anodes which have undertaken the Anode Manufacturing Process (Step 1 of the manufacturing process) and Electro Chemical Processing (Step 2 of the manufacturing process) will be 8532.90.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Electrical capacitors, fixed, variable or adjustable (pre-set); parts thereof: Parts.” The rate of duty will be free.
The applicable subheading for the Tantalum Anodes which have undertaken the Assembly Process (Step 3 of the manufacturing process), Moulding Process (Step 4 of the manufacturing process), and Laser Mark/Test/Pack/Ship Process (Step 5 of the manufacturing process) will be 8532.21.00, Harmonized Tariff Schedule of the United States (HTS), which provides for “Electrical capacitors, fixed, variable or adjustable (pre-set); parts thereof: Other fixed capacitors: Tantalum.” The rate of duty will be free.
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 Linda M. Hackett at 646-733-3015.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division