OT:RR:CTF:CPMMA H329620 NAH
Center Director
Petroleum, Natural Gas & Minerals
Center for Excellence and Expertise
U.S. Customs and Border Protection
Attn: Grayson Knott, Import Specialist
RE: Application for Further Review of Protest No. 1108-22-100137; Tariff classification of iridium electrodes
Dear Center Director,
This is in reply to the Application for Further Review (“AFR”) of Protest No.
1108-22-100137, filed on October 11, 2022, on behalf of Johnson Matthey Inc. (“Protestant”), contesting U.S. Customs and Border Protection’s (“CBP”) classification of “iridium electrodes,” also known as iridium tube sections or rings or discs, in subheading 7115.90.60, Harmonized Tariff Schedule of the United States (“HTSUS”), as “Other articles of precious metal or of metal clad with precious metal: Other: Other: Other.”
The Protestant has requested that certain information submitted in connection with this AFR be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved in part. The information contained within brackets in the protestant’s revised submission, received on April 28, 2023, and forwarded to our office will not be released to the public and will be withheld from the published version of this ruling. Confidential treatment will not extend to information concerning the general manufacturing process of the iridium electrodes found on the bottom of page three and extending into page four of the Protestant’s submission.
FACTS:
The iridium electrodes are made of pure iridium and contain no osmium or ruthenium. These electrodes are manufactured by first melting iridium grain into bars, which are then forged into circular wire. The iridium wire is then processed to form a tube. Finally, the tubes are cut into sections to the width specified by the customer before importation into the United States. The Protestant asserts that the articles will be welded into aircraft spark plug igniters and no further manufacturing occurs before they are incorporated into the aircraft spark plugs.
The protested merchandise consists of one entry that was entered at the Port of Philadelphia (“Port”) on November 11, 2021, and was liquidated on April 15, 2022, under subheading 7115.90.6000, HTSUSA (“Annotated”), as “Other articles of precious metal or of metal clad with precious metal: Other: Other: Other.” The Protestant filed this Protest and AFR on October 11, 2022, asserting that the subject merchandise is properly classified under subheading 7110.49.0010, HTSUSA, as “Platinum, unwrought or in semimanufactured forms, or in powder form: Iridium, osmium and ruthenium: Other: Iridium separately.”
ISSUE:
Whether the subject iridium electrodes are classified in subheading 7110.49.0010, HTSUSA, as “Platinum, unwrought or in semimanufactured forms, or in powder form: Iridium, osmium and ruthenium: Other: Iridium separately,” or in subheading 7115.90.6000, HTSUSA, as “Other articles of precious metal or of metal clad with precious metal: Other: Other: Other.”
LAW AND ANALYSIS:
Initially, we note that the matter is protestable under 19 U.S.C. § 1514(a)(2) as a decision on classification. The protest was timely filed, within 180 days of liquidation for entries made on or after December 18, 2004. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B)(ii), (iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)). Further review of Protest No. 1108-22-100137 is properly accorded pursuant to 19 C.F.R. § 174.24(b) because the decision against which the protest was filed is alleged to involve a question of law or fact that has not previously been ruled upon by CBP or the courts.
The classification of goods under the HTSUS is governed by the General Rules of Interpretation (“GRI”). GRI 1 provides that classification 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. In this case, the 2021 HTSUS headings under consideration are as follows:
7110 Platinum, unwrought or in semimanufactured forms, or in powder form:
Iridium, osmium and ruthenium:
7110.49.00 Other:
7110.49.0010 Iridium separately
7115 Other articles of precious metal or of metal clad with precious metal:
7115.90 Other:
Other:
7115.90.60 Other
* * * * *
Note 1(b) to chapter 71, HTSUS, provides, in pertinent part, as follows:
Subject to note 1(a) to section VI and except as provided below, all articles consisting wholly or partly:
…
(b) Of precious metal or of metal clad with precious metal, are to be classified in this chapter.
Note 4 to chapter 71, HTSUS, provides, in pertinent part, as follows:
The expression “precious metal” means silver, gold and platinum.
The expression “platinum” means platinum, iridium, osmium, palladium, rhodium and ruthenium.
Additional U.S. Note (“AUSN”) 1(b) to chapter 71, HTSUS, provides, in pertinent part, as follows:
1. For the purposes of subchapter II, unless the context otherwise requires:
(a) The term “unwrought” refers to metals, whether or not refined, in the form of ingots, blocks, lumps, billets, cakes, slabs, pigs, cathodes, anodes, briquettes, cubes, sticks, grains, sponge, pellets, shot and similar manufactured primary forms, but does not cover rolled, forged, drawn or extruded products, tubular products or cast or sintered forms which have been machined or processed otherwise than by simple trimming, scalping or descaling;
(b) The term “semimanufactured” refers to wrought metal products in the form of bars, rods, sections, plates, sheets, strips, wire, tubes, pipes and hollow bars, and to powder (other than primary metals in powder form);
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
There is no dispute that the iridium electrodes fall under chapter 71, HTSUS. Pursuant to notes 4(a) and 4(b) to chapter 71, the expression “precious metal” includes platinum, and the expression “platinum” includes “iridium.” Additionally, as a precious metal, iridium is classified in chapter 71 pursuant to note 1(b) to chapter 71, HTSUS.
As directed by GRI 1, to determine the appropriate heading for the subject merchandise, CBP looks to the terms of the headings and the relevant section and chapter notes for guidance. Under heading 7110, HTSUS, the article must be in “unwrought,” “semimanufactured” or “powder” forms. The iridium rings are not in a powdered form, so the analysis moves to whether they are unwrought or semimanufactured.
“Unwrought,” according to AUSN 1(a), “does not cover rolled, forged, drawn or extruded products, tubular products or cast or sintered forms which have been machined or processed otherwise than by simple trimming, scalping or descaling.” According to the Protestant’s submission, the iridium electrodes are forged, hot worked, and undergo significant shaping. Thus, the protested merchandise is machined and processed otherwise than by simple trimming, scalping, or descaling. As such, the iridium rings are not unwrought.
“Semimanufactured,” according to AUSN 1(b), includes “wrought metal products in the form of bars, rods, sections, plates, sheets, strips, wire, tubes, pipes and hollow bars, and to powder (other than primary metals in powder form).” Consistent with CBP practice, articles of precious metal that require no further manufacturing after importation or are not intended to be further manufactured or worked, are not considered “unwrought” or “semimanufactured” and are classified under heading 7115, HTSUS. See NY N295318, dated April 3, 2018 (classifying osmium round and rectangle bars that require no further manufacturing after importation under heading 7115, HTSUS)); HQ H209834, dated March 22, 2017 (classifying conductor paste that is completely wrought and fully manufactured prior to importation in heading 7115, HTSUS, even though the paste must still be bonded and hardened into electronic devices after importation); NY N252485, dated April 25, 2014 (classifying silver stars under heading 7115, HTSUS, instead of heading 7106, HTSUS, because the stars were worked beyond the semimanufactured form); NY N209035, dated March 29, 2012 (classifying silver bars under heading 7115, HTSUS, instead of heading 7106, HTSUS, because the bars are worked beyond the semimanufactured form); NY N204615, dated March 1, 2012 (classifying minted gold bars under 7115, HTSUS, instead of heading 7108, HTSUS, because the bars are worked beyond the semimanufactured form); and HQ 965187, dated May 29, 2002 (classifying investment gold bars under heading 7115, HTSUS, because the bars are further processed beyond semimanufactured forms into “articles” of gold through die stamping prior to importation). Here, raw iridium is extensively processed into the specific shape and size sought by the end user, with the width of the iridium disk specifically dictated by the buyer. The Protestant asserts that after manufacture, the iridium electrodes are simply welded into an aircraft spark plug igniter and that no further manufacturing occurs. As such, the iridium electrodes are not semimanufactured because they undergo significant and specific processing before importation and no further manufacturing occurs after importation. The iridium electrodes’ character is fixed before importation.
In sum, the iridium electrodes are not in unwrought, semimanufactured, or powder form. Therefore, classification under heading 7110, HTSUS, is precluded, and it is instead classified under heading 7115, HTSUS, as “Other articles of precious metal or of metal clad with precious metal.”
Protestant argues that the instant merchandise is classified under heading 7110, HTSUS, because the articles are made of pure iridium, are semimanufactured, and are commonly used as electrodes for aircraft spark plugs, as described in the Explanatory Note (“EN”) 71.10. Yet in making this same argument, the Protestant notes that “its US customers will simply weld the electrodes into place in the aircraft spark plug igniter and that no further manufacturing occurs to the iridium electrodes before they are incorporated into the aircraft spark plugs by means of welding.” This statement, in fact, refutes the Protestant’s argument that the protested merchandise is semimanufactured since they concede that no further manufacturing occurs before incorporation into the spark plugs. In addition, CBP note’s that while the ENs provide useful commentary, they are not legally binding. The Protestant also asserts that classification under heading 7110, HTSUS, is more appropriate than classification under heading 7115, HTSUS, because GRI 3(a) directs that the more specific description is preferred when confronted with two or more headings that would equally apply. However, CBP only resorts to GRIs 2 through 6, 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. Here, there is no need to apply GRI 3(a) where the merchandise is classifiable under GRI 1 and the chapter notes.
HOLDING:
By application of GRI 1, the iridium electrodes are classified in heading 7115, HTSUS, specifically in subheading 7115.90.6000, HTSUSA, as “Other articles of precious metal or of metal clad with precious metal: Other: Other: Other.” The 2021 column one, general rate of duty is 4% ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/current.
You are instructed to DENY the protest.
You are instructed to notify the protestant of this decision no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to this notification. Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (“CROSS”) at https://rulings.cbp.gov/ which can be found on the CBP website at http://www.cbp.gov and other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division