CLA-2-76:OT:RR:NC:N1:117
Mr. Justin S. Han
S&H Customs Broker, Inc.
13810 Cerritos Corporate Dr., Suite B
Cerritos, CA 90703
RE: The tariff classification of aluminum billets from South Korea
Dear Mr. Han:
In your letter dated October 26, 2018, you requested a tariff classification ruling, a country of origin ruling, and a marking ruling on behalf of HMA Inc.
The products to be imported are identified as aluminum billets. The billets are described as having varying widths between 6 inches and 11 inches. In accordance with the additional information you provided, it was determined the billets are aluminum alloy. Aluminum alloy scrap of United States (US) is shipped to South Korea where it is melted down with nonalloy aluminum ingots from Australia and then made into billets.
The applicable subheading for the aluminum billets will be 7601.20.9045, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Unwrought aluminum: aluminum alloys: other: other: of uniform circular cross section throughout its length, not in coils. The rate of duty will be free.
You have inquired if the product will be able to be classified as a product that was produced using parts and materials of US origin. "Country of origin" is defined in section 134.1(b), Customs Regulations, as:
the country of manufacture, production, or growth of any article of foreign
origin entering the United States. 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 is said to have occurred when an article emerges
from a manufacturing process with a name, character, or use which differs from the original material subjected to the process.
In this case, the issue for consideration is whether the melting and mixing of Australia origin nonalloy aluminum ingot with US origin aluminum alloy scrap effects a substantial transformation. For the billets to be considered of US origin, the evidence must show that the processing done in South Korea does not result in a product other than or materially different from the merchandise entering South Korea. It is our opinion that the melting and mixing of Australia origin nonalloy aluminum ingot with US origin aluminum alloy scrap does result in a substantial transformation making the billets a product of South Korea.
You have also requested a ruling for the proper marking of the aluminum billets. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides:
that, unless excepted, every article of foreign origin (or its container) imported
into the U.S. shall be marked in a conspicuous place as legibly, indelibly and
permanently as the nature of the article (or its 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. Certain classes of articles which are specified in section 134.33, Customs Regulation (19 CFR 134.33), known as the "J-list," are excepted from individual country of origin marking pursuant to 19 U.S.C. 1304(a)(3)(J). One of the exceptions to this statute is metal bars, including billets, meaning the billets do not have to be marked with “Made in South Korea.” 19 CFR 134.33 further provides that if an article included on the "J-list" is imported in a container, the outermost container in which the article ordinarily reaches the ultimate purchaser is required to be marked to indicate the origin of its contents.
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 at https://hts.usitc.gov/current.
On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a number of steel and aluminum mill products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.01 for aluminum. Products classified under subheading 7601.20.9045, HTSUS, may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 subheading applicable to your product classification in addition to the Chapter 72, 73 or 76 subheading listed above.
The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 subheadings.
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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division