CLA-2-81:RR:NC:1:118 C83802
Mr. Tony Collini
John S. Connor, Inc.
The World Trade Center
401 E. Pratt Street
Suite 700
Baltimore, MD 21202
RE: The tariff classification of tungsten (wolfram) powder and
unwrought tungsten rods and bars from Uzbekistan.
Dear Mr. Collini:
In your letter dated January 21, 1998, you requested a
tariff classification ruling on behalf of your client, Sovereign
Recycling.
You state the products, tungsten powder and unwrought
tungsten bars and rods, are composed of 99.8% tungsten. This
material will be purchased from the UZKTZ HM plant in Uzbekistan
by a metal broker in the United Kingdom. This metal broker will
then sell this material to your client prior to the shipment
leaving Uzbekistan. The material will be shipped from the
Uzbekistan plant by truck to a European port for shipment to a
Foreign Trade Zone (FTZ) in the United Kingdom. The tungsten
will be unloaded at this FTZ where it will be repacked for
shipment to the United States.
Under the Generalized System of Preference (GSP), eligible
articles which are imported directly from a designated
beneficiary developing country (BDC) into the U.S. qualify for
duty-free treatment if the sum of the cost or value of the
constituent materials produced in the BDC plus the direct costs
involved in processing the eligible article in the BDC is at
least 35 percent of the article's appraised value at the time it
is entered into the U.S. The phrase "imported directly" is
defined in section 10.175 of the Customs Regulations (19 CFR
10.175).
Under 19 CFR 10.175, merchandise shipped through a non-BDC
to the U.S. is "imported directly" if: 1) the merchandise does
not enter into the commerce of the intermediate country while en
route to the U.S., and the invoices, bills of lading and other
shipping documents show the U.S. as the final destination (19 CFR
10.175(b)); or 2) the merchandise does not enter into the
commerce of the intermediate country except for the purpose of
sale other than at retail, the shipment remains under the control
of the customs authority of the intermediate country and the
shipment is not subjected to operations other than loading and
unloading and other activities necessary to preserve the articles
in good condition (19 CFR 10.175(d)).
Since your inquiry does not suggest that the invoices, bills
of lading and other original shipping documents to be issued in
the BDC will show the U.S. as the final destination, it does not
appear that the shipment will meet the requirements of 19 CFR
10.175(b). You indicated that the merchandise will be repackaged
in the FTZ. Manipulation of the merchandise permitted in the
non-BDC under 19 CFR 10.175(d) is limited to "loading and
unloading, and other activities necessary to preserve the
articles in good condition." 19 CFR 10.175(d)(3). Repackaging
constitutes more than a loading and unloading operation.
Accordingly, the imported products, although they may be produced
in Uzbekistan, will not qualify for GSP eligibility because they
do not meet the "imported directly" requirement.
The applicable subheading for the tungsten powder produced
in Uzbekistan will be 8101.10.0000, Harmonized Tariff Schedule of
the United States (HTS), which provides for Tungsten (wolfram)
and articles thereof, including waste and scrap: Powders. The
rate of duty will be 7.7 percent ad valorem.
The applicable subheading for the unwrought tungsten bars
and rods will be 8101.91.5000, HTS, which provides for Tungsten
(wolfram) and articles thereof, including waste and scrap: Other:
Unwrought tungsten, including bars and rods obtained simply by
sintering; Waste and scrap: Unwrought. The rate of duty will be
6.6 percent ad valorem.
In our binding ruling letter (NY C81626 dated November 17,
1997) to your client, Sovereign Recycling, a clerical error was
made in citing the applicable 1997 rate of duty for the unwrought
tungsten bars and rods. The correct 1997 rate of duty for the
subject unwrought tungsten bars and rods which were classified
under 8101.91.5000, HTS, would be 6.6 percent ad valorem in 1997.
This ruling is being issued under the provisions of Part 177
of the Customs Regulations (19 CFR 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 Kathy
Campanelli at 212-466-5492.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division