CLA-2-82:OT:RR:NC:N1:118
Lin-Ren Wang
Grand Glory Trading Limited
No. 500, Linsen North Road, Zhong Shan District Taipei 10491 Taiwan
RE: The tariff classification of tungsten carbide rod blanks and cylindrical flux coating drawing die blanks from Taiwan
Dear Ms. Wang:
In your letter dated October 8, 2024, you requested a tariff classification ruling on tungsten carbide rod blanks and cylindrical flux coating drawing die blanks.
The tungsten carbide rod blanks are identified as CR12. Each contain by weight 89-90% Tungsten Carbide (WC),10% Cobalt (Co) (serving as a binder) and other materials (less than 1%). You state that the tungsten carbide rods are primarily used in the production of cutting tools such as end mills and drills, as well as in wear parts and precision forming tools. At the time of importation each rod measures 3.0 mm in diameter and 14.3 mm in length. After importation, the rods will be resistance welded onto steel shanks, then the tungsten carbide part will go through step grinding, grinding and sharpening to be turned into cutting tools, such as end mills, drills and other precision forming tools. These cutting tools, machined from the tungsten carbide rods, will then be mounted to cutting machines via tool holders.
The cylindrical flux coating drawing die blanks are identified as CF15. Each contain by weight 89-90% Tungsten Carbide (WC), 10% Cobalt (Co) (serving as a binder) and other materials (less than 1%). The die blanks have an outer diameter of 90 mm and are 100 mm in height, with their inner diameters measuring 15 mm and 75 mm. When the blanks arrive in the United States, they will be machined into finished flux coating drawing dies and will be principally used with a die flux coating machine to coat the surface of a welding electrode wire. You describe the die flux coating process as follows: steel wires are sent through a conveyor, then into a tube in the flux coating machine. The wires pass through a flux nozzle to be first painted with flux paste, and then pass through the flux coating die which will apply hydraulic pressure to the flux painted wire and fix the flux coat with uniform density onto the wire. You state that the flux coating machine does not draw or extrude the wire itself.
The applicable subheading for the tungsten carbide rod blanks, CR12, will be 8209.00.0030 Harmonized Tariff Schedule of the United States (HTSUS), which provides for plates, sticks, tips and the like for tools, unmounted, of cermets: of sintered metal carbides. The general rate of duty will be 4.6% ad valorem.
Regarding the classification of the cylindrical flux coating drawing die blanks, heading 8479 covers machines and mechanical appliances, and their parts, that are neither excluded from Chapter 84 nor covered by any preceding heading of the Chapter. The Explanatory Notes to Heading 8479, Part (III) MISCELLANEOUS MACHINERY, provides that “(7) Machines for coating welding electrodes” are included in heading 8479. As the CF15 flux coating dies are designed for and suitable for use principally with machines for coating welding electrodes and are necessary for those machines to perform their coating function, they are considered parts of such machines and classified with them. See HTSUS Section XVI, Legal Note 2(b).
GRI 2(a) provides in part that “[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.” Certain “blanks” may be considered incomplete or unfinished articles or parts within the meaning of GRI 2(a) unless they are specified in a particular heading. The Explanatory Notes to GRI 2(a) provide guidance on the application of the rule to “blanks”:
“(II) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term “blank” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part …”
In this case, when the flux coating die blanks are imported into the U.S. they have the same outer shape and dimensions as the finished product. Typically, U.S. customers need only perform grinding and polishing for the inner hole to increase cylindrical concentric accuracy for their final use. Nothing suggests that the article has any practical use other than for completion into a finished flux coating die. Therefore, the flux coating die blank is an unfinished article which has the essential character of a complete or finished part.
By operation of Section XVI Legal Note 2(b), and GRI 2(a), the applicable subheading for the cylindrical flux coating drawing die blanks, CF15, will be 8479.90.9596, HTSUS, “[m]achines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Parts: Other: Other: Other.” The general 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 at https://hts.usitc.gov/.
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 Anthony Grossi at anthony.e.grossi@cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division