CLA-2-81:OT:RR:NC:N1:117
Mr. Julien Le Chapelain
Mimeta SA
Avenue de Bethusy 54
1012 Lausanne
Switzerland
RE: The tariff classification of magnesium ingot ends from China
Dear Mr. Le Chapelain:
In your letter dated January 11, 2016 you requested a tariff classification ruling.
The products you intend to import are described as 99.8 percent pure magnesium ingot ends remaining after the production of magnesium powder and raspings in grinding equipment in which the ingots are secured by vises as grinding tools work on the ingots. As explained and shown in submitted pictures, the ends or sides of the ingots on which the vises are fixed cannot be ground down below a certain point for safety reasons. These end pieces constituting up to 15 percent of the original ingot vary in weight and shape. The ingots are imported from their country of production, China into Switzerland where they are partially made into powder and raspings.
You indicated that the ingot ends will be used mainly as an alloying element, being added to a melt. The main end-use will be in the aluminum alloying industry. The ingot ends may be used by chemical companies where they will be used as a chemical reagent for a dedicated chemical reaction.
You have suggested classification as magnesium waste and scrap, which is classifiable in 8104.20.0000, Harmonized Tariff Schedule of the United States (HTSUS). You have also suggested Switzerland as country of origin rather than China.
We do not agree with your position. Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
Section XV, Additional U.S. Note 1, HTSUS, in part defines "unwrought" to include ingots and similar manufactured primary forms. Section XV, Note 8(a), HTSUS, defines Waste and scrap to include metal waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons. The term Waste and scrap is not further defined in any legal note, or in the 8104 ENs. However, with regard to magnesium waste and scrap, these ENs state, at p. 1187, that this group includes raspings, turnings and granules which have not been graded or sorted according to size. The ENs also state that the heading 72.04 ENs apply by appropriate substitution of terms. The 72.04 ENs state, at p. 1076, that the heading excludes articles which, with or without repair or renovation, can be reused for their former purposes or can be adapted for other uses; it also excludes articles which can be refashioned into other goods without first being recovered as metal.
The ingot ends remain 99.8 percent magnesium, by weight, although with altered dimensions. They are suitable for the same uses as full ingots with the same metallurgy. Nonstructural uses of magnesium include its application as an alloying element in aluminum, zinc, lead and certain other nonferrous alloys. It is used as an oxygen scavenger and desulfurizer in the manufacture of nickel and copper alloys, and as a reducing agent in the production of titanium and zirconium. Magnesium finds some use in pyrotechnics, and is also used for the cathodic protection of other of other metals from corrosion and in the construction of dry-cell batteries. See Metals Handbook, Vol. 1, 8th. Ed. The magnesium ingot ends at issue do not qualify as waste and scrap of subheading 8104.20.00, HTSUS. They are primary manufactured forms and, therefore, are unwrought for tariff purposes.
In addition, the ingot ends have not been subjected to substantial transformation in Switzerland. They remain pure magnesium in unwrought form as imported from China into Switzerland. Therefore for U.S. Customs & Border Protection entry purposes the country of origin remains China.
The applicable subheading for the magnesium ingot ends will be 8104.11.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for magnesium and articles thereof, including waste and scrap: unwrought magnesium: containing at least 99.8 percent by weight of magnesium. The rate of duty will be 8 percent of the value.
You have asked whether this product is subject to antidumping duties or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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 [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division