OT:RR:CTF:CPMM H282216 APP
Mr. Christopher Constantine
Oerlikon Metco US, Inc.
1101 Prospect Avenue
Westbury, NY 11590
RE: Revocation of NY N251680; Tariff classification of Yttria Stabilized Zirconium Oxide Powder
Dear Mr. Constantine:
This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York Ruling Letter (“NY”) N251680, dated June 23, 2014 (issued to Sulzer Metco (US), Inc.) regarding the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of yttria stabilized zirconium oxide powder. In NY N251680, CBP classified the product under heading 3824, HTSUS, specifically under subheading 3824.90.92, HTSUS (2014), which provides for “Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Other: Other: Other.” We have determined that this ruling is in error. Therefore, for the reasons set forth below we hereby revoke NY N251680.
Pursuant to section 625(c)(l), Tariff Act of 1930 (19 U.S.C. § 1625(c)(l)), 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), a notice was published in the Customs Bulletin, Volume 51, No. 48, on November 29, 2017, proposing to revoke NY N251680 and to revoke any treatment accorded to substantially identical transactions. No comments were received in response to this notice.
FACTS:
The merchandise at issue in NY N251680 is yttria stabilized zirconium oxide powder used in high-temperature ceramic applications such as crucibles or furnace linings. The Material Safety Data Sheet supplied by the manufacturer states that the yttria stabilized zirconium oxide powder consists of zirconium dioxide (87-91%), Chemical Abstracts Service (“CAS”) No. 1314-23-4; yttrium oxide (7.5-13%), CAS No. 1314-36-9; and hafnium dioxide (0.1-1.8%), CAS No. 12055-23-1. All compounds in this mixture are inorganic.
The CBP Laboratories and Scientific Services (“LSSD”) New York Laboratory examined a sample of yttria stabilized zirconium oxide powder supplied by Sulzer Metco. LSSD Report No. NY20140528, dated May 7, 2014, states the following:
Information from the importer indicates that the sample is a 7-8% yttria stabilized zirconium oxide powder. It is said to have trace amounts of alumina, silica, iron oxide, calcia and magnesia and minor amounts of hafnia. Note: A name ending in the letter A usually indicates the oxide of an element. For example, yttria is yttrium oxide.
Yttrium can be substituted for zirconium in the crystal structure of zirconium oxide. The percentage of yttrium can be varied over a continuous range. Yttrium is added so that the zirconium oxide remains in the cubic crystal form. Pure zirconium oxide would exist in a different crystal form and would have different properties. Yttrium does not usually occur in nature along with zirconium.
In our opinion, yttrium cannot be considered an impurity.
ISSUE:
Whether the subject yttria stabilized zirconium oxide powder is classified in subheading 3824.99.39, HTSUS, as a mixture of two or more inorganic compounds or in subheading 3824.99.92, HTSUS, as an other chemical preparation.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level.
The HTSUS provisions under consideration in this case are as follows:
3824 Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included:
Other:
3824.99 Other:
Other:
Mixtures of two or more inorganic compounds:
3824.99.39 Other
Other:
Other:
3824.99.92 Other
There is no dispute that the yttria stabilized zirconium oxide powder is classified as an other chemical product in subheading 3824.99, HTSUS. At issue is the proper 8-digit tariff rate. As a result, GRI 6 applies.
Subheading 3824.99.39, HTSUS covers mixtures of two or more inorganic compounds. See NY N263876, dated April 22, 2015 (classifying two grades of inorganic mixtures under subheading 3824.90.39, HTSUS (2015), which became subheading 3824.99.39 in 2017). Subheading 3824.99.92, HTSUS is a residual provision. See Headquarters Ruling Letter (“HQ”) H058796, dated December 7, 2009 (classifying a mixture of halogenated hydrocarbons in subheading 3824.90.92, HTSUS, which is now subheading 3824.99.92, HTSUS, because it could not be classified in the previous subheadings); NY N052735, dated February 26, 2009 (classifying a chemical mixture composed of organic and inorganic compounds and polymers in subheading 3824.90.92, HTSUS). “Classification of imported merchandise in a basket provision is appropriate only when there is no tariff category that covers the merchandise more specifically.” Apex Universal, Inc. v. United States, 22 CIT 465 (1998) (ceramic raised pavement markers were classified under the basket provision for “other ceramic articles” because they did not meet the terms of any of the more specific provisions in Chapter 69, HTSUS). Thus, we first need to determine whether the instant yttria stabilized zirconium oxide powder is specifically covered by subheading 3824.99.39, HTSUS.
The Material Safety Data Sheet supplied by the manufacturer reveals that the instant yttria stabilized zirconium oxide powder consists of zirconium dioxide (87-91%), yttrium oxide (7.5-13%), and hafnium dioxide (0.1-1.8%). According to the CBP LSSD report, the supplied sample was a 7-8% yttria stabilized zirconium oxide powder and contained trace amounts of alumina, silica, iron oxide, calcia and magnesia and minor amounts of hafnia. As in NY N263876, the instant product is a mixture of two or more inorganic compounds and is prima facie classifiable in subheading 3824.99.39, HTSUS. Unlike in HQ H058796 and NY N052735, the instant product does not contain any organic compounds or polymers. Because the subject yttria stabilized zirconium oxide powder is specifically covered by subheading 3824.99.39, HTSUS, it is not classifiable as other than mixtures of two or more inorganic compounds under the basket provision in subheading 3824.99.92, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the subject yttria stabilized zirconium oxide powder is classified under heading 3824, HTSUS, specifically under subheading 3824.99.39, HTSUS, as “Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Other: Mixtures of two or more inorganic compounds: Other.” The 2017 column one, duty rate is 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/current.
EFFECT ON OTHER RULINGS:
NY N251680, dated June 23, 2014, is hereby 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