OT:RR:CTF:CPMMA H319517 AJK
TARIFF NO: 6810.99.0010
Mr. David J. Craven
Craven Trade Law LLC
3744 N Ashland Avenue
Chicago, IL 60613
RE: Request for Binding Ruling on Classification of Aluminum Hydroxide Surface
Dear Mr. Craven:
This letter is in response to your correspondence, dated December 31, 2019, on behalf of your client, FS Enigma International Pte Ltd., in which you request a binding ruling on the classification of aluminum hydroxide surface under the Harmonized Tariff Schedule of the United States (HTSUS) pursuant to 19 C.F.R. § 177(a)(1). Your request was forwarded to this office by the National Commodity Specialist Division (NCSD) for a decision. You initially submitted an electronic ruling request on December 2, 2019. In response, U.S. Customs and Border Protection (CBP) requested additional information concerning your product on December 6, 2019. On February 3, 2020, we sent a sample of your product to the CBP Laboratories and Scientific Services Directorate (LSSD) for analysis. Thereafter, you submitted supplemental information regarding your product on August 19, 2021. We apologize for the delay in responding to your request. Upon careful review of your request, we have determined that the aluminum hydroxide surface is properly classified in heading 6810, HTSUS, which provides for articles of artificial stone.
FACTS:
In your request, you explain that the aluminum hydroxide surface consists of 46% aluminum hydroxide, 41% natural quartz, 12.93% resin, and 0.07% titanium dioxide. The titanium dioxide has the highest raw material value whereas the aluminum hydroxide has the highest weight. It is made from a proprietary blend of quartz and aluminum hydroxide, which is further blended with polyester resin to form an amorphous mixture. The mixture is formed into a slab and cured using a low temperature curing process. The resultant product is then calibrated and polished prior to importation into the United States. The product will be imported in two sizes measuring approximately 3220 millimeters (mm) long by 1620 mm wide by 20 mm thick, and 3220 mm long by 1620 mm wide by 30 mm thick. It will be imported as finished slabs. After importation, it will be cut to size by an installer and processed into kitchen or bathroom countertops or table surfaces.
LSSD’s report, NY20200207, dated November 3, 2020, confirmed that the aluminum hydroxide surface consists of quartz and an aluminum compound uniformly agglomerated in a polymer matrix. The report further noted that under ordinary viewing conditions, the sample is uniformly white except for some black pigmentation, which appears to mimic the veins in natural marble.
ISSUE:
Whether the aluminum hydroxide surface is classified in heading 2506, HTSUS, as quartz; heading 2818, HTSUS, as aluminum hydroxide; heading 3920, HTSUS, as sheets of plastic; heading 6810, HTSUS, as articles of artificial stone; or heading 6815, HTSUS, as other mineral substances not elsewhere specified.
LAW AND ANALYSIS:
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.
GRI 3(b) states, in pertinent part, as follows:
Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
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The HTSUS provisions at issue are as follows:
2506 Quartz (other than natural sands); quartzite, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape
2818 Artificial corundum, whether or not chemically defined; aluminum oxide; aluminum hydroxide
3920 Other plates, sheets, film, foil and strip, of plastics, noncellular and not reinforced, laminated, supported or similarly combined with other materials
6810 Articles of cement, of concrete or of artificial stone, whether or not reinforced
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
Note 1 to chapter 25 states, in pertinent part:
Except where their context or note 4 to this chapter otherwise requires, the headings of this chapter cover only products which are in the crude state or which have been washed (even with chemical substances eliminating the impurities without changing the structure of the product), crushed, ground, powdered, levigated, sifted, screened, concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallisation), but not products which have been roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading.
Note 1 to chapter 28 states, in pertinent part, as follows:
Except where the context otherwise requires, the headings of this chapter apply only to:
(a) Separate chemical elements and separate chemically defined compounds, whether or not containing impurities ….
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The Harmonized Commodity Description and Coding System (HS) Explanatory Notes (ENs) constitute the official interpretation of the HS. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HS at the international level, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989).
EN to GRI 3(b) provides, in pertinent part, as follows:
(VII) In all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(VIII) The factor which determines essential character will vary as between different
kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
EN 25.06 provides, in pertinent part, as follows:
Quartz is the naturally occurring crystal form of silica.
It falls in this heading only if complying with both of the following two conditions:
(a) It must be in the crude state or have not undergone any process beyond that allowed in Note 1 to this Chapter; for this purpose, heat treatment designed solely to facilitate crushing is regarded as a process permitted by Chapter Note 1.
(b) It must not be of a variety and quality suitable for the manufacture of gem-stones (e.g., rock crystal and smoky quartz, amethyst and rose quartz). Such quartz is excluded (heading 71.03), even if intended to be used for technical purposes, e.g., as piezo-electric quartz or for the manufacture of parts of tools.
The General EN to chapter 68 provides, in pertinent part:
This Chapter covers: …
(C) Certain goods made from mineral materials of Section V.
(D) Goods made from certain of the materials of Chapter 28 (e.g., the artificial abrasives).
Some of the goods in category (C) or (D) may be agglomerated by means of binders, contain fillers, be reinforced, or in the case of products such as abrasives or mica be put up on a backing or support of textile material, paper, paperboard or other materials.
Most of these products and finished articles are obtained by operations (e.g., shaping, moulding), which alter the form rather than the nature of the constituent material. Some are obtained by agglomeration (e.g., articles of asphalt, or certain goods such as grinding wheels which are agglomerated by vitrification of the binding material); others may have been hardened in autoclaves (sand-lime bricks)….
EN 68.10 provides, in pertinent part, as follows:
Artificial stone is an imitation of natural stone obtained by agglomerating pieces of natural stone or crushed or powdered natural stone (limestone, marble, granite, porphyry, serpentine, etc.) with lime or cement or other binders (e.g., plastics).…
When lumps of quartz of various sizes are introduced into the mixture, artificial stone type products are obtained.
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The aluminum hydroxide surface is a composite good that consists of a mixture of several substances, including aluminum hydroxide, quartz, resin, and titanium dioxide. Accordingly, the classification of the aluminum hydroxide surface is determined by the application of GRI 3(b), which applies to composite goods. To classify merchandise under GRI 3(b), CBP must identify the component that imparts the essential character of the merchandise. “The ‘essential character’ of an article is ‘that which is indispensable to the structure, core or condition of the article, i.e., what it is.’” Structural Industries v. United States, 360 F. Supp. 2d 1330, 1336 (Ct. Int’l Trade 2005). Generally, the physical measures of bulk, quantity, weight or value are considered to determine the constituent material that imparts the essential character of the merchandise. See EN to GRI 3(b). Accordingly, under GRI 3(b), the classification of merchandise is determined by the heading in which the component that imparts the essential character is classified. Moreover, a composite good is classified as if consisting only of the component that imparts the essential character of the merchandise. See e.g., HQ 967291, dated November 9, 2004 (“Under GRI 3(b), the good shall be classified as if consisting only of that component that imparts the essential character to the whole.”). While the physical measures of bulk, quantity, weight or value can be considered in an essential character analysis, the subject merchandise calls for an analysis of the role of the components in relation to the good. See EN to GRI 3(b)(VIII).
In your ruling request, you contend that the aluminum hydroxide surface is properly classified in subheading 6815.99.40, HTSUS, as other articles of stone or other mineral substances not elsewhere specified. You assert that the merchandise is precluded from the provisions for quartz because quartz does not comprise the chief weight of the product and thus, the product’s chief mineral substances are not otherwise specified in the HTSUS. We disagree.
While we recognize that the aluminum hydroxide part of the aluminum hydroxide surface predominates by weight and that the titanium dioxide has the highest value, these factors are not entirely conclusive. Thus, we must examine the role of each component in relation to the use of the merchandise. Although the aluminum hydroxide component is heavier than the other components and the titanium dioxide component has a higher value, neither of these components capture the essence of “what it is” in regards to the general utility of the merchandise. Here, the subject merchandise is designed to mimic the appearance of natural marble, as it is marketed and utilized as an alternative to marble countertops or table surfaces, which are generally higher in price and value. Accordingly, the consumers of the aluminum hydroxide surface do not purchase the product for the individual components of aluminum hydroxide, resin, or titanium dioxide; instead, they purchase the product as an imitation stone of marble—the appearance of which is imparted by quartz. Although aluminum hydroxide creates the white surface, the appearance of marbles cannot be achieved without quartz. Moreover, the resin is used as a binder to hold the other components of quartz and aluminum hydroxide together whereas the titanium dioxide is utilized as a coating of the surface. Thus, we find that quartz imparts the essential character of the aluminum hydroxide surface.
Heading 2506, HTSUS, is an eo nomine provision that provides for quartz. In the instant case, however, the merchandise is precluded from heading 2506, HTSUS, because the pieces of quartz in the aluminum hydroxide surface are not in the crude state and have undergone a process of mixing with other components. See EN 25.06; note 1 to chapter 25. Thus, the subject merchandise instead constitutes an article of artificial stone within heading 6810, HTSUS, because it is an imitation of a marble surface that is created by agglomerating pieces of quartz with other binders—resin and titanium dioxide. See EN 68.10. Moreover, the ENs to chapter 68 further provide that chapter 68 includes minerals in section V (i.e., quartz) and goods made from articles of chapter 28 (i.e., aluminum hydroxide). The aluminum hydroxide surface, therefore, is properly classified in heading 6810, HTSUS, and specifically, in subheading 6810.99.00, HTSUS, which provides for other agglomerated quartz slabs of the type used for countertops.
Moreover, the classification of the subject aluminum hydroxide surface in heading 6810, HTSUS, is consistent with the industry standard of categorizing similar solid surfaces as articles of artificial stone. In Inabata Specialty Chems. v. United States, the U.S. Court of International Trade held that “tariff classification law relies heavily on commercial practice and understandings.” 29 CIT 419, 424 (2005). Our research indicates that for industry or commercial purposes, the terms “artificial stones”, “engineered stones”, “imitation stones”, and “man-made stones” are used to describe and market solid surfaces, such as the subject aluminum hydroxide surface, which mimic the appearance of natural stone and are designed to be used as countertops or table surfaces. In accordance with the above analysis and with general commercial practice, the aluminum hydroxide surface constitutes an article of artificial stone within heading 6810, HTSUS.
HOLDING:
In accordance with the above analysis and by application of GRI 3(b), the aluminum hydroxide surface is classified in heading 6810, HTSUS, and, by application of GRI 6, it is specifically classified in subheading 6810.99.0010, HTSUSA (Annotated), which provides for “Articles of cement, of concrete or of artificial stone, whether or not reinforced: Other articles: Other: Agglomerated quartz slabs of the type used for countertops”. The 2022 column one, general rate of duty is free.
Pursuant to U.S. note 20 to subchapter III, chapter 99, HTSUS, products of China classified under subheading 6810.99.00, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, an importer must report the chapter 99 subheading (i.e., 9903.88.03, HTSUS), in addition to subheading 6810.99.00, HTSUS, listed above.
The HTSUS is subject to periodic amendment. Therefore, an importer should exercise reasonable care in monitoring the status of goods covered by the note cited above and the applicable chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, one may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 www.usitc.gov/current.
If you require further information, please contact Ms. Arim J. Kim, to whom this matter has been assigned, at (202) 325-0266.
Sincerely,
Allyson Mattanah
Allyson R. Mattanah, Chief
Chemicals, Petroleum, Metals and Miscellaneous Articles Branch