CLA-2 RR:CR:GC W967682 JAS
Mr. Timothy Shepherd
Nissin Customs Service, Inc.
101 Mark Street, Suite G
Wood Dale, ILL 60191
RE: “Finemet” Flexible Magnetic Shielding Sheet; NY J86283 Revoked
Dear Mr. Shepherd:
In NY J86283, which the Director, National Commodity Specialist Division, Bureau of Customs and Border Protection (CBP), New York, issued to you on behalf of Hitachi Metals America on July 16, 2003, certain alloy steel ribbon to which is laminated polyethyleneterepthalate (PET) was found to be classifiable as other articles of iron or steel, in subheading 7326.90.8587, 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 86283 was published on October 19, 2005, in the Customs Bulletin, Volume 39, Number 43. Two comments were received in response to this notice, both favoring the proposal but without elaboration.
FACTS:
The merchandise, known as “Finemet” (MS-F), was described in NY J86283 as a thin, flexible magnetic shielding material made of a laminate sandwich consisting of 5 alternating layers: PET (polyethyleneterepthalate) film-adhesive-“Finemet” ribbon-adhesive-PET film. Alloy steel, in ribbon form, is first produced by ejecting molten steel from a crucible onto a rotating chill roll. The molten steel is rapidly quenched, then heat treated, after which adhesive is applied to both sides and PET is applied by a laminating process. Product literature submitted with the ruling request indicates the resulting “Finemet” (MS-F) measures approximately 610 mm x 460 mm x 0.15 mm. This product is designed to eliminate broadband noise in such electrical devices as mobile phones, digital cameras and personal computers by virtue of its magnetic shielding properties.
The HTSUS provisions under consideration are as follows:
Flat-rolled products of other alloy steel, of a width of less
than 600 mm:
Other:
7226.99.00 Other
* * * *
Other articles of iron or steel
Other:
Other:
Other:
7326.90.85 Other
ISSUE:
Whether the merchandise, processed as described, is a product of Chapter 72.
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.
Chapter 72, Note 1(k), HTSUS, defines Flat-rolled products, in part, in terms of thickness and width requirements, and includes those products with patterns in relief derived directly from rolling (for example, grooves, ribs, etc.) and those which have
been perforated, corrugated or polished, provided that they do not thereby assume the character of articles or products of other headings. The “Finemet” (MS-F) meets these descriptions.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. Though not dispositive, the ENs provide a commentary on the scope of each
heading of the HTSUS. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
EN 73.26 indicates the heading covers all iron or steel articles other than those included in the preceding headings of Chapter 73, or covered by Note 1 to Section XV or included in Chapters 82 or 83 or more specifically covered elsewhere in the Nomenclature. In addition, General Explanatory Note (IV)(C) to Chapter 72 indicates that the finished products of that chapter may be subjected to further finishing treatments or converted into other articles. Included are surface treatments or other operations to improve the properties or appearance of the metal, protect it against rusting and corrosion, etc. Except as otherwise provided in the text of certain headings, such treatments do not affect the heading in which the goods are classified. Among these treatments or operations, at General Explanatory Note (IV)(C)(2)(g), is lamination.
The uniting of five alternating layers of PET film and alloy steel ribbon utilizing an adhesive constitutes a lamination. It is apparent that this laminating process is designed to improve the properties of the alloy steel ribbon by better suiting it for use in shielding the magnetic field created by high voltage distribution lines or power distribution equipment, thereby attenuating broadband noise. Therefore, the subject merchandise is provided for as a flat-rolled product of other alloy steel, of heading 7226. By its terms, heading 7326 is eliminated from consideration.
HOLDING:
Under the authority of GRI 1, “Finemet” (MS-F) is provided for in heading 7226. It is classifiable in subheading 7226.99.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The column 1 rate of duty under this provision 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 on the World Wide Web at www.usitc.gov/tata/hts.
EFFECT ON OTHER RULINGS:
NY J86283, dated July 16, 2003, 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 Rulings Division