CLA-2-81:RR:NC:1:118 I80147
Mr. Andrew Tate
Tate Medical Engineering Ltd.
Steelcroft Works
Leeds Road
Otley, West Yorkshire
LS21 3BB
RE: The tariff classification of reclaimed cobalt chrome powder from the United Kingdom.
Dear Mr. Tate:
In your letter dated March 26, 2002, you requested a tariff classification ruling.
You have described your item as reclaimed cobalt chrome powder, which has a composition as follows:
Cr 27.00-30.00%
Mo 5.00-7.00%
Ni 1.00% max
Fe 0.75% max
C 0.26-0.31% max
Si 1.00% max
Mn 1.00% max
Co % Balance
This is a rare, high value powder used to coat orthopedic implants, i.e. hips and knees. Much of the powder is wasted in the coating process. It is then captured, reclaimed and returned to the United States (U.S.) for use in the implant manufacturing industry.
The manufacturing flow of the powder is as follows:
Orthopedic implant manufacturer purchases virgin powder from supplier in the U.S.
Implants are surface coated with powder. Waste powder is collected, drummed and shipped to the United Kingdom for reclaiming.
Virgin powder is purchased from the U.S. and is blended 50:50 with reclaimed powder.
The blended powder is certified chemically and shipped back to the U.S. for coating on implants.
The applicable subheading for the reclaimed cobalt chrome powder will be 8105.20.3000, Harmonized Tariff Schedule of the United States (HTS), which provides for cobalt mattes and other intermediate products of cobalt metallurgy; cobalt and articles thereof, including waste and scrap: cobalt mattes and other intermediate products of cobalt metallurgy; unwrought cobalt; powders: unwrought cobalt: alloys. The rate of duty will be 4.4% ad valorem.
Consideration was given to granting a partial reduction in duty for your product in subheadings 9802.00.50, HTS and 9802.00.60, HTS. However, the circumstances presented did not qualify your product to be treated as an article exported for repairs or alterations as the item is incomplete for its intended use and a foreign processing step is necessary for preparation of the finished article; or as an article of metal exported for further processing, returned to the U.S. for further processing. The returned powder (not evident to be made in the US) is used, not further processed.
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 Kathy Campanelli at 646-733-3021.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division