CLA-2-81:OT:RR:NC:1:117
Ms. Sue Audet
GTAT Corporation
243 Daniel Webster Highway
Merrimack, NH 03054
RE: The tariff classification of molybdenum scrap from a foreign trade zone.
Dear Ms. Audet:
In your letter dated July 7, 2014 you requested a tariff classification ruling.
The items under consideration are described as molybdenum crucibles. The crucibles are manufactured in Austria and will enter a foreign trade zone (“FTZ”). In their condition entering the FTZ, they are usable as melting pots designed for use in a semiconductor sapphire boule manufacturing furnace. However, you state that after the semiconductor boules are produced in the FTZ, the subject crucibles are broken apart into small pieces in order to remove the boules intact. This action renders the crucibles incapable of any further use. You indicate that the resulting pieces of molybdenum will be released for consumption into the U.S. and sold as scrap.
In view of their condition upon withdrawal from the FTZ, this office would not consider the broken molybdenum crucibles to fall within the purview of heading 8486, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays: machines and apparatus specified in Note 9(C) to this chapter; parts and accessories”. Classification in accordance with your cited ruling NY N167596, dated June 22, 2011, in which molybdenum crucibles were classified in subheading 8486.90.0000, HTSUS, which provides for “Machines and apparatus of a kind solely or principally for the manufacture of semiconductor boules …: parts and accessories” would not be appropriate. The crucibles in the cited ruling were in a usable condition upon entry into the United States. The subject crucibles can be distinguished from the crucibles in NY N167596 as they are incapable of use.
Based on the information provided, the molybdenum crucibles enter the United States as broken unusable pieces and as such would be considered waste and scrap for tariff purposes.
The applicable subheading for the molybdenum scrap will be 8102.97.0000, HTSUS, which provides for “Molybdenum and articles thereof, including waste and scrap, other, waste and scrap”. The rate of duty will be free.
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 http://www.usitc.gov/tata/hts/.
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 Mary Ellen Laker at (646) 733-3020.
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division