CLA-2 RR:CR:GC 965437 RFA
Port Director of Customs
301 East Ocean Blvd. Long Beach, California 90802
RE: Protest 2704-01-102128; Synthetic Iron Oxide Powder B-3; Metal Particles B-3 (Iron Pellets); Granules and Powders of Iron; Other Chemical Products, Not Elsewhere Specified or Included
Dear Port Director:
The following is our decision regarding Protest 2704-01-102128, filed by Imation Enterprises Corp., which concerns the classification of synthetic iron oxide powder referred to as Toda B-3 under the Harmonized Tariff Schedule of the United States (HTSUS). In reaching our decision, we also considered the information submitted by the protestant in its submission dated February 25, 2002.
FACTS:
The merchandise consists of synthetic iron oxide powder “B-3”, also known as metal particles “B-3” (iron pellets) [hereinafter referred to as “B-3”], which is used in the manufacture of data storage tapes. According to the protestant, the B-3 is a metallic core with a protective shell and that the metallic core is what is required to manufacture advanced data storage tapes. The protestant states that the shell contributes nothing to the magnetic properties, but is necessary to prevent oxidation of the metallic core. Each B-3 particle is on the order of 0.15 microns in length and about 0.02 microns in diameter. For convenience in shipping and handling, these extremely fine particles are compacted into granules. The shell is approximately 0.003 microns in thickness.
The merchandise was entered on June 11, 2000, under subheading 7205.10.00, HTSUS, as granules of iron. The entry was liquidated on May 4, 2001, under subheading 3824.90.90, HTSUS, as other chemical products and preparations of the chemical or allied industries, not elsewhere specified or included. The protest was timely filed on July 30, 2001.
The HTSUS provisions under consideration are as follows:
3824.90.90: . . . ; Chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; . . . : [o]ther: [o]ther: [o]ther: [o]ther: [o]ther. . . .
Goods classifiable under this provision have a column one, general rate of duty of 5.0 percent ad valorem.
7205.10.00 Granules and powders, of pig iron, spiegeleisen, iron or steel: [g]ranules . . . . .
Goods classifiable under this provision have a column one, general rate of duty of free.
ISSUE:
Is the subject merchandise classifiable as other chemical products and preparations of the chemical or allied industries, not elsewhere specified or included, or as iron granules under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.
Protestant claims that the B-3 is properly classifiable in heading 7205, HTSUS, as granules and powders of iron. Because of these claims, a sample of the B-3 was sent to the Customs Laboratory for analysis. In Customs Laboratory Report No. LA20010992A, dated December 4, 2001, Customs found that the sample of black pelletized powder contained only 76% iron, plus several other compounds. Customs Laboratory further reported that the sample was a mixture of iron or its alloy and one or more inorganic compounds. To be classified within heading 7205, HTSUS, a powder
must be made of either pig iron, spiegeleisen, iron or steel. As the powder contains only 76% iron plus several different compounds, we find that the B-3 Powder does not meet the terms of the heading for heading 7205, HTSUS.
As classification under heading 7205 is precluded and no other heading properly describes the B-3 Powder, we find that it is classified under heading 3824, HTSUS, as other chemical products and preparations of the chemical or allied industries, not elsewhere specified or included. As the powder consists of an element and inorganic compounds, it is specifically provided for under subheading 3824.90.90, HTSUS.
HOLDING:
The subject merchandise is classifiable under subheading 3824.90.90, HTSUS, which provides for: “. . . ; [c]hemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; . . . : [o]ther: [o]ther: [o]ther: [o]ther: [o]ther. . . .” Goods classifiable under this provision have a column one, general rate of duty of 5.0 percent ad valorem.
The protest should be DENIED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Regulations and Rulings
will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Acting Director
Commercial Rulings Division