CLA-2-82:RR:NC:1:104 K89782
Mr. Doug Thornton
Sanxin Wire Die, Inc.
2727 Gatewood Circle
Charlottesville, VA 22911
RE: The tariff classification of wire drawing dies from China
Dear Mr. Thornton:
In your letter dated September 11, 2004 you requested a tariff classification ruling.
You indicate that your company will be importing diamond and polycrystalline diamond wire drawing dies in finished and semi-finished condition. Some of the polycrystalline diamond dies will have an external tungsten carbide ring for strength and heat dissipation. All of the wire drawing dies will have a stainless steel case.
The semi-finished diamond dies will require significant further processing in the U.S. Your customers will have to enlarge the holes in the dies, shape the profiles of the holes to suit the intended application and polish the surfaces of the enlarged holes.
Classification under the HTSUS is governed by the General Rules of Interpretation (GRI’s). GRI 2(a) provides that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.
The Explanatory Note (EN) II under GRI 2(a) in the Harmonized Commodity Description and Coding System provides guidance on the application of GRI 2(a), stating that the provisions of this rule also apply to blanks unless specified in a particular heading. The term “blanks” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part. Your semi-finished dies are blanks for tariff purposes.
You will also be sending worn dies to China for reconditioning and return. The worn dies sent to China will be upsized, polished etc. and stamped with the new die size.
The processing described is similar to the processing described in HQ ruling 561108 dated March 23, 1999. In this ruling, customs held that the re-sizing operations performed in Mexico on worn diamond wire drawing dies did not result in a change in the character or use of the die and that the operations constituted acceptable “repairs” or “alterations” within the meaning or subheading 9802.00.50. The operations performed included polishing, sizing, finishing and stamping.
The reprocessed dies will have a different size. This issue was also addressed in HQ 561108. The ruling indicated that although the foreign processing did not restore the dies to their original condition, the identical die dimension, it does not create a new and commercially different article. It is still a wire drawing die. The foreign processing extends the life of the die rendering it fit for its original use albeit for drawing wire of a different size or form.
The applicable subheading for the finished and semi-finished diamond and polycrystalline diamond wire drawing dies will be 8207.20.0030, Harmonized Tariff Schedule of the United States (HTS), which provides for dies for drawing or extruding metal, and parts thereof. The rate of duty will be 3.9 percent
Based on the information provided, the processing performed in China which re-sizes the diameter of the exported used, worn diamond wire drawing dies acts to prolong the useful life of the exported dies by rendering them fit for their original use. Accordingly, these operations constitute acceptable “repairs” or “alterations,” within the meaning of subheading 9802.00.50, HTSUS. Therefore, upon their return to the U.S., the reconditioned wire drawing dies will be eligible for the duty exemption available under this tariff provision provided the documentary requirements of 19 CFR 10.8 are met.
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 Robert Losche at 646-733-3011.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division