CLA-2-85:OT:RR:NC:N1:102
Mr. Michele Leonelli
Urban Mining Company
8201 E. Riverside Drive, Suite 150
Austin, Texas 78744
RE: The tariff classification of a strip casting furnace from China.
Dear Mr. Leonelli:
In your letter you requested a tariff classification ruling for a strip casting furnace.
The merchandise you intend to import is an electric strip casting furnace that heats and melts alloys used to produce magnets. The vacuum induction furnace consists of a chamber body that is a base framework used for all processes. The primary processes completed by the furnance are heating and melting. Electricity is transmitted to an induction coil and this generates a magnetic field needed to heat and melt the alloys. The temperature achieved during the heating and melting process ranges between 1430-1450 degrees Celsius.
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.
In your letter dated October 18, 2016, you propose classifying the strip casting furnace under subheading 8454.30.0090, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Converters, ladles, ingot molds and casting machines, of a kind used in metallurgy or in metal foundries, and parts thereof: Casting machines … Other”.
However, it is the condition of the furnace at the time of importation that governs. While the furnace may be a component of a strip casting line, it is well-established that articles are classified in their condition as imported in their respective headings. In this instance, it is the tariff status of a separately imported furnace, and not a complete strip casting line, that is in issue. HQ 951569 dated April 23, 1992 and NY N264765 dated June 16, 2015 noted. As electric furnaces are specifically provided for in Chapter 85, classification under subheading 8454.30.0090, HTSUS, would not be appropriate.
The split caster furnace operates as a vacuum induction furnace used to heat materials, such furnaces are specifically provided for under HTSUS Heading 8514. Therefore, in accordance with GRI 1, the applicable subheading for the strip caster furnace will be subheading 8514.40.0000, HTSUS, which provides for Industrial or laboratory electric furnaces and ovens; Other equipment for the heat treatment of materials by induction or dielectric loss. 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 https://hts.usitc.gov/current.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division