CLA-2-38:RR:E:NC:N2:237
Lizbeth Robin Levinson
Solid Industrial Group
1000 Potomac Street, N.W.
Washington, D.C. 20007-3501
RE: Country of origin marking of activated carbon from Indonesia and China. Dear Ms. Levinson:
In your letter dated February 1, 2007, on behalf of Solid Industrial Group, you requested a country of origin marking ruling. The imported product is described as heat activated carbon processed under three different scenarios. The activated carbon is used inter alia to purify water and eliminate contaminants from industrial waste water.
Under scenario one, coal is purchased in China, ground and palletized in China and carbonized in China. The resulting charcoal is shipped to Indonesia where it is heat activated, crushed, sifted, acid washed, packaged and shipped to the United States.
Under scenario two, coconut shell activated carbon 20x50 mesh, CTC 65% min. purchased from the Philippines is shipped to China where it is acid washed using a proprietary process to reduce the amount of trace metals to a very low level, then dried, packaged and shipped to the United States.
Under scenario three, coconut shell activated carbon 12x20 mesh, CTC 60% min. purchased from the Philippines is shipped to China where it is put into furnaces and the adsorption capacity is increased CTC 88% min., sized, packaged and shipped to the United States.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C.1304. Section 134.1(b), Customs Regulations (19 CFR 134.1 (b)), defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of this part. A substantial transformation occurs "when an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing." See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F.2d 778 (1982) (cited with approval in Torrington Co. v. United States, 764 F. 2d 1563, 1568 (1985)). In this case, the issue for consideration is whether heat treatment and/or acid washing of charcoal or activated carbon in another country effects a substantial transformation. In determining whether heat treatment or acid washing in another country constitutes a substantial transformation, the issue is whether the charcoal or activated carbon emerges from the heat and/or acid washing treatment with a new name, character, or use which differs from the original material subjected to the process. The activation of carbon is described as the process of treating carbon to open an enormous number of pores. In the activated state, carbon adsorbs gases, liquids, and solids. Activation of carbon in the form of charcoal is accomplished by feeding steam into a kiln maintained at about 1000 C (thermal activation). Activation of carbon in the form of cellulosic material is accomplished by feeding the chemically impregnated material into the kiln (chemical activation). This tends to remove the adsorbed hydrocarbons from the surface and leaves a porous structure. The surface area of activated carbon produced is about 1000 square meters per gram. Variables such as pore size and surface area are controlled by the kiln temperature and residence time in the kiln. The adsorbing property of charcoal is related to the large surface area present.
Explanatory Note 38.02(A), HTSUS, covers carbon and mineral substances said to be activated when their superficial structure has been modified by appropriate treatment (with heat, chemicals, etc.) in order to make them suitable for certain purposes, such as decolourising, gas or moisture adsorption, catalysis, ion-exchange or filtering. Explanatory Note 38.02(A)(II)(a), HTSUS, covers activated carbon usually obtained by treating vegetable, mineral or other carbon (wood charcoal, coconut shell carbon, peat, lignite, coal, anthracite, etc.) at a high temperature in the presence of steam, carbon dioxide or other gases (thermal activation), or by dry calcinations of cellulosic materials impregnated with solutions of certain chemicals (chemical activation).
Under scenario one, coal is ground, pelletized and carbonized in China. Heading 2701, HTSUS, covers briquettes manufactured from coal. The resulting charcoal is shipped to Indonesia where it is heat activated, crushed, sifted, acid washed, packaged and shipped to the United States. Heading 3802, HTSUS, covers activated carbon. The heat treatment substantially transforms the coal into a new and different article, having a new name (activated charcoal), character (adsorbent) and particular use (filtration). Consequently, a substantial transformation has occurred and the country of origin is Indonesia.
Under scenario two, coconut shell activated carbon 20x50 mesh, CTC 65% min. from the Philippines is shipped to China. In China the coconut shell activated carbon from the Philippines is acid washed using a proprietary process to reduce the amount of trace metals to a very low level, then dried, packaged and shipped to the United States. The importer claims that the activated carbon is acid washed only to reduce the amount of trace metals and not to increase the number of pores.
Under scenario three, coconut shell activated carbon 12x20 mesh, CTC 60% min. from the Philippines is shipped to China where it is put into furnaces and the adsorption capacity is increased to CTC 88% min., sized, packaged and shipped to the United States. ASTM D3467 Standard Test Method for Carbon Tetrachloride (CTC) Activity is a determination of the activation level of the activated carbon.
After activation, steam activated and chemically activated carbons can be further treated depending on the application for which they will be used. Acid washing is often used for certain activated carbons that have a high ash content. Chemically activated carbons may also retain some of the activating agent (usually phosphoric acid or zinc chloride) that could leach out during processing and make them unacceptable for certain applications such as aquarium filters or pharmaceutical purification. Washing the activated carbon with hydrochloric or other acids removes minerals and ash resulting in a higher purity product. Acid washed, activated carbons are often used in applications where process streams are acidic, such as purification of corn syrup. For some specialty applications, the activated carbon may be impregnated with metals or other chemicals. This impregnation would give the activated carbon the ability to adsorb a particular impurity or catalyze a desired reaction. In some instances, used or spent activated carbon can be reactivated. Carbon is reactivated by thermally or chemically removing chemical species adsorbed onto the spent carbon. However, once the activated carbon has been used, it may take on the toxicity of adsorbed materials. In many cases there may be a loss in comparative efficiency when compared to the original virgin material. In processes where environmentally regulated chemicals are being captured on activated carbon, strict bookkeeping of the amount of regulated chemical produced and how it is disposed of is required.
Under scenario two, activated charcoal from the Philippines is acid washed in China using a proprietary process to reduce the amount of trace metals to a very low level. As a result of the acid treatment, the activated charcoal is advanced in condition and value, takes a new name (acid washed activated charcoal), character (high purity activated carbon) and particular use (certain specialty filtration applications). Consequently, a substantial transformation has occurred and the country of origin is China.
Under scenario three, activated charcoal CTC 60% from the Philippines is put into furnaces in China and the adsorption capacity is increased to CTC 88%. As a result of the heat treatment, the activated charcoal is advanced in condition and value, takes a new name (activated charcoal CTC 88%), character (high adsorption capacity activated carbon) and particular use (certain specialty filtration applications). Consequently, a substantial transformation has occurred and the country of origin is China.
This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 401 M Street, S.W., Washington, D.C. 20460, telephone number (202) 554-1404, or by visiting their website at www.epa.gov.
Certain activated carbon from the People's Republic of China may be subject to anti-dumping duties administered by the U.S. Department of Commerce, Import Administration. You may contact Catherine Bertrand, AD/CVD Operations, Office 9, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone number : (202) 482- 3207; or by visiting their website at www.IA.ITA.DOC.GOV.
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. For any questions regarding the ruling, contact National Import Specialist Frank Cantone at (646) 733-3038.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division