CLA-2 OT:RR:CTF:TCM H251019 ALS
Port Director
U.S. Customs and Border Protection
200 East Bay Street
Charleston, SC 29401
Attn.: Leslie Holmes, Supervisory Import Specialist
RE: Internal Advice; Tariff Classification of the Honeyceram Greenbodies
Dear Port Director:
This letter is in reply to your request for internal advice, dated January 22, 2016, initiated on behalf of NGK Ceramics USA, Inc. (“NGK”). The internal advice request concerns the “the classification of Honeyceram Greenbodies (“Greenbodies”) for car and diesel truck catalytic converters under the Harmonized Tariff Schedule of the United States (“HTSUS”).” Our decision is set forth below.
FACTS:
NGK describes the Greenbodies and their constituent materials as follows:
Greenbodies are unfired ceramic cordierite catalyst supports for auto exhaust (catalytic) converters. Cordierite (2Mg0+2Al2O3+5SiO2), a technical ceramic, has been the standard used for substrates since the invention of the monolithic substrate in 1975. The reason that cordierite is used is due to its ability to provide low thermal expansion, high temperature stability, good porosity (which is important in precious metal coating), and excellent oxidation resistance. It should be noted that at the time of importation the Greenbodies are “unfired,” i.e., they are not imported with their catalyst coating. That process is performed post-importation by NGK’s customers.
In their condition at the time of importation, Greenbodies are specially designed in a honeycombed form… suitable for use solely with a motor vehicle for exhaust gas purification in a catalytic converter… There are six models of Greenbodies designed for use in different cars and diesel trucks, but per below, they are substantially and materially identical.
The Greenbodies are composed of 42% Talc, 42% Kaolin, and 16% Alumina, with the remaining materials being Methocell and Surfactant. The wall thickness for the different models range from 2mm to 6mm. NGK further states the following:
The functions of the constituent materials are as follows:
For Talc, Kaolin, and Alumina: The functions of the constituent materials are the main components used to create cordierite, which is the preferred material for ceramic automotive substrates. They supply MGO, Al2O3, and SiO2 units to the synthetic cordierite formulations.
For Methocell: Cellulose binders are used to help keep all the materials held together until the firing process can occur. At the very beginning of the post importation firing process, the substrates actually pass through a de-binding stage where the binders are burnt out of the substrate. Afterwards, the actual forming of cordierite crystals begins.
For Surfactant: The surfactant, sodium lauryl sulfate, is just present to help with the interfacial tension between the materials during the extrusion process.
NGK states that the Greenbodies are “unfired” in their condition as imported and that they technically do not become cordierite until they have been fired. NGK also states that the Greenbodies are able to maintain their form in their imported condition because of the cellulose binder, but can be easily damaged by any slight force.
ISSUE:
Are the various models of Honeyceram Greenbodies, as described above, properly classified under HTSUS heading 6815, which provides for “Articles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included”, or under HTSUS heading 6909, which provides for “Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods”, or under HTSUS heading 8421, which provides for “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof”?
LAW AND ANALYSIS:
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order.
GRI 2(b) provides the following:
2. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.
The following headings and subheadings of the 2016 HTSUS are under consideration in this case:
6815 Articles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included:
6815.99 Other:
6815.99.40 Other........
* * *
6909 Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods
6909.19 Other:
6909.19.50 Other..................
* * *
8421 Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof:
8421.99 Other..................
* * * * * * *
NGK suggests that the Greenbodies are possibly classifiable under one of three HTSUS headings. NGK begins by stating that heading 8421 might apply because the Greenbodies are filtering components of a catalytic converter. Heading 8421 provides for, among other things, filtering apparatus and parts thereof. Note 1(a) to Chapter 84, HTSUS, however, states that Chapter 84 does not cover articles of Chapter 68. Therefore, we must determine first whether or not the Greenbodies are classifiable under Chapter 68, specifically heading 6815.
Heading 6815, HTSUS, provides for, among other things, articles of mineral substances. As noted above in the FACTS section, the various models of Greenbodies are comprised of Talc, Kaolin, Alumina, Methocell, and Surfactant. Among these materials, you state that only Methocell is synthetic and that the others are natural mineral substances. Our Office of Laboratory and Scientific Services (OLSS) has tested a sample Greenbody and has confirmed the presence of Talc, Kaolin, and Alumina in the Greenbody. Talc is a natural mineral found in metamorphic rocks. See, e.g., http://www.mindat.org/min-3875.html. Kaolin is a natural mineral found in clay beds. See, e.g., http://www.mindat.org/min-2156.html. Alumina is also known as aluminum oxide, and it is in fact a synthetically produced substance that is utilized as a raw material for ceramic products. See, e.g., https://www.britannica.com/science/alumina; http://www.alcoa.com/alumina/en/info_page/alumina_defined.asp.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, though not dispositive or legally binding, may provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. CBP believes the ENs should always be consulted. See T.D. 89-
80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The EN for GRI 2(b) states the following:
Rule 2 (b) concerns mixtures and combinations of materials or substances, and goods consisting of two or more materials or substances. The headings to which it refers are headings in which there is a reference to a material or substance (e.g., heading 05.07 ivory), and headings in which there is a reference to goods of a given material or substance (e.g., heading 45.03 articles of natural cork). It will be noted that the Rule applies only if the headings or the Section or Chapter Notes do not otherwise require (e.g., heading 15.03 lard oil, not ... mixed).
Mixtures being preparations described as such in a Section or Chapter Note or in a heading text are to be classified under the provisions of Rule 1.
(XI) The effect of the Rule is to extend any heading referring to a material or substance to include mixtures or combinations of that material or substance with other materials or substances. The effect of the Rule is also to extend any heading referring to goods of a given material or substance to include goods consisting partly of that material or substance.
(XII) It does not, however, widen the heading so as to cover goods which cannot be regarded, as required under Rule 1, as answering the description in the heading; this occurs where the addition of another material or substance deprives the goods of the character of goods of the kind mentioned in the heading.
(XIII) As a consequence of this Rule, mixtures and combinations of materials or substances, and goods consisting of more than one material or substance, if prima facie classifiable under two or more headings, must therefore be classified according to the principles of Rule 3.
In this case, combining the binding agents Methocell and Surfactant with the main ingredients Talc, Kaolin, and Alumina does not preclude a finding that the Talc, Kaolin, and Alumina are in fact the ingredients that give the Greenbodies their essential character.
The EN for Chapter 68 of the HTSUS states that “[t]his Chapter covers… [c]ertain goods made from mineral materials of Section V… [and] [g]oods made from certain of the materials of Chapter 28 (e.g., the artificial abrasives).” The HTSUS recognizes Talc and Kaolin as natural substances, as they are provided for as such under Section V, HTSUS, specifically headings 2526 and 2507, respectively. Aluminum oxide is an article provided for in Chapter 28, HTSUS. Given that Talc and Kaolin each comprise 42% of the constituent materials of the Greenbodies, it is clear that they comprise the vast majority of the Greenbodies. Since both Talc and Kaolin are mineral materials of Section V and aluminum oxide is provided for by name in Chapter 28, HTSUS (specifically heading 2818) it is clear that the Greenbodies meet the description provided in the EN for Chapter 68 of a good to be covered under Chapter 68, HTSUS.
Our Office of Laboratory and Scientific Services has confirmed the claimed composition of the Greenbodies that NGK provided as a sample. OLSS has also confirmed that the sample tested was not fired. Note 1 to Chapter 69, HTSUS, provides that Chapter 69 “applies only to ceramic products which have been fired after shaping.” Since the Greenbodies have not been fired upon importation, Chapter 69 does not apply to them. Note 1(a) to Chapter 84, HTSUS, provides that Chapter 84 “does not cover... millstones, grindstones or other articles of chapter 68.” Since we have established that the Greenbodies meet the description of articles to be classified under Chapter 68, Chapter 84 also does not apply to the Greenbodies.
Thus, pursuant to GRI 2(b), Note 1 to Chapter 69, and Note 1(a) to Chapter 84, HTSUS, we conclude that the subject Honeyceram Greenbodies are properly classified under heading 6815, HTSUS, as “Articles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included.” Specifically, the Honeyceram Greenbodies are properly classified under subheading 6815.99.40, HTSUS, as “Articles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included: Other: Other...”
HOLDING:
The subject Honeyceram Greenbodies device is properly classified, by application of GRI 2(b), Note 1 to Chapter 69, and Note 1(a) to Chapter 84, HTSUS, under heading 6815, HTSUS. Specifically, it is classified under HTSUS subheading 6815.99.40, HTSUS, as “Articles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included: Other: Other...” The general column one rate of duty, for merchandise classified in this subheading is Free.
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 on the World Wide Web at www.usitc.gov.
You are to mail this decision to the internal advice requester no later than 60 days from the date of the decision. At that time, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division