CLA-2-72:OT:RR:NC:N5:117
Shingo Yokoyama
Iwatani Corporation of America
2200 Post Oak Blvd.
Houston, TX 77056
RE: The country of origin of ferrosilicon powder
Dear Mr. Yokoyama:
In your letter dated August 29, 2023, you requested a country of origin ruling. The product to be imported is described as stabilized ferrosilicon powder, which will be used as a flux powder for welding rod.
In accordance with Section XV, Note 8(b) and Chapter 72, Note 1(c), the applicable subheading for the ferrosilicon powder will be 7202.29.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Ferroalloys: Ferrosilicon: Other, Other. The rate of duty will be free.
You describe a scenario wherein lump ferrosilicon is purchased from China, measuring 10-50 mm. The product is sent to Japan for further processing. In Japan, a milling and crushing operation breaks the ferrosilicon down into a powder. The ferrosilicon also undergoes a surface stabilization treatment before it is packaged for export to the United States. You propose that the country of origin for the ferrosilicon powder is Japan.
Regarding your request for the appropriate country of origin of the ferrotitanium, 19 C.F.R. § 134.1(b) provides in pertinent part as follows: Country of origin means 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. As stated in HQ 735009, dated July 30, 1993, “The country of origin is the country where the article last underwent a “substantial transformation,” that is, processing which results in a change in the article's name, character, or use.”
Based on the facts presented, it is the opinion of this office that the milling, crushing, and surface treatment of the lump ferrosilicon into a powder does not constitute a substantial transformation. Although a change in tariff classification is not determinative of a substantial transformation, here, the same classification of the component product and the final product indicates that the imported powder is not a new and different product. Therefore, the ferrosilicon is not substantially transformed in Japan and the resulting powder remains a product of China.
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 9903.85.03 for aluminum. Products classified under subheading 7202.29.0050, 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Denise Hopkins at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division