CLA-2 RR:CTF:TCM 967941 JAS
Mr. William Paulin
Kuehne Chemical Company, Inc.
86 North Hackensack Avenue
South Kearny, NJ 07032
RE: Anodes and Cathodes Used In Machines for Electrolysis; NY R02374 Revoked
Dear Mr. Paulin:
In NY R02374, which the National Commodity Specialist Division, U.S. Customs and Border Protection, New York, issued to you on August 29, 2005, certain anodes and cathodes used in electrolysis were found to be classifiable as other articles of precious metal or of metal clad with precious metal, in 7115.90.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA).
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. 1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation of NY R02374 was published on February 8, 2006, in the Customs Bulletin, Volume 40, Number 7. No comments were received in response to this notice.
FACTS:
In NY R02374, ruthenium-coated titanium anodes and platinum-coated nickel cathodes for use in an electrolysis plant were held to be classifiable as other articles of precious metal or of metal clad with precious metal, in subheading 7115.90.6000, HTSUSA. The ruling described articles that were to be used in the electrodeposition of
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the precious metal component onto other metal objects with the base metals, titanium and nickel, being used as carrier media for the precious metal. After the precious metal is diminished, the anodes and cathodes are returned to the United Kingdom to be refurbished.
You have explained that the anodes and cathodes are in fact used in an electrolysis plant to electrolyze brine into chlorine and sodium hydroxide. The precious metal coatings, platinum and ruthenium, act as a catalyst to allow the proper chemical reactions to occur. The precious metals are not redeposited onto other metal objects.
The HTSUS provisions under consideration are as follows:
Other articles of precious metal or of metal clad with
precious metal:
Other:
Other:
Other
* * * *
Electrical machines and apparatus, having individual
functions, not specified or included elsewhere in [Chapter
85]; parts thereof:
8543.30.00 Machines and apparatus for electroplating,
electrolysis or electrophoresis
8543.90 Parts:
Other:
Other:
8543.90.88 Other
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ISSUE:
Whether the anodes and cathodes, as described, are provided for in heading 8543.
LAW AND ANALYSIS:
Under General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), goods are to be classified according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6.
Initially, Chapter 71, Note 3(k), HTSUS, states that machinery, mechanical appliances or electrical goods, or parts thereof, of section XVI, are not covered by chapter 71. Therefore, the issue is whether the anodes and cathodes, as described, are parts for tariff purposes and, if so, whether they are parts of electrical goods of chapter 84 or chapter 85.
As to the parts issue, articles that are integral, constituent components of another article, are necessary to the completion of that article, and which satisfy a specific and integral need in the operation of that article qualify as parts for tariff purposes. See Mitsubishi Int’l v. United States, 17 CIT 871, 829 F. Supp. 1387 (1993), and cases cited. The ruthenium-coated titanium anodes and platinum-coated nickel cathodes allow the proper chemical reactions to occur in the electrolytic process by which chlorine and sodium hydroxide are produced. These articles satisfy the above criteria for parts of machines and apparatus for electrolysis.
Subject to certain exceptions that are not relevant here, goods that are identifiable as parts of machines or apparatus of Chapter 84 or Chapter 85 are classifiable in accordance with Section XVI, Note 2, HTSUS. See Nidec Corporation v. United States, 861 F. Supp. 136, aff'd. 68 F. 3d 1333 (1995). Parts which are goods included in any of the headings of Chapters 84 and 85 are in all cases to be classified in their respective headings. See Note 2(a). Other parts, if suitable for use solely or principally with a particular machine, or with a number of machines of the same heading, are to be classified with the machines of that kind. See Note 2(b). Machines and apparatus for electrolysis are specifically provided for in subheading 8543.30.00, HTSUS. By function and design, the described anodes and cathodes appear to be principally, if not solely, used with such machines and apparatus.
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HOLDING:
Under the authority of GRI 1 and Section XVI, Note 2(b), the ruthenium-coated titanium anodes and platinum-coated nickel cathodes are provided for in heading 8543. They are classifiable in subheading 8543.90.88.80, HTSUSA.
EFFECT ON OTHER RULINGS:
NY R02374, dated August 29, 2005, is revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division