CLA-2-71:OT:RR:NC:2:239

Mr. Karl Krueger
DHL Global Forwarding
2660 20th Street
Port Huron, MI 48060

RE: The tariff classification of cutting inserts from Japan

Dear Mr. Krueger:

In your letter dated November 7, 2008 on behalf of Sumitomo Electric Carbide, Inc. you requested a tariff classification ruling.

The Polycrystalline Cubic Boron Nitride (PCBN) and Polycrystalline Cubic Diamond (PCD) inserts are used for turning and boring, profiling, grooving, milling and hole making in various materials. They are available in a variety of shapes for different applications. Both types of cutting inserts have a tungsten carbide base in their disc form. The PCBN and PCD discs are cut and then brazed to a support matrix of tungsten carbide. They are not capable of use by themselves but must always be attached to the bodies for use as composite tools.

In your letter, you state that you believe both the PCBN and the PCD inserts should be classified under subheading 3824.90.3900, Harmonized Tariff Schedule of the United States (HTSUS), which provides for prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified or included: mixtures of two or more inorganic compounds: other. You base your opinion on NY ruling J85700 dated July 8, 2003 which you claim ruled on “substantially the same articles”. Said ruling classified Polycrystalline Cubic Boron Nitride Cutters in subheading 3824.90.3900, HTSUS.

The classification of PCD inserts has been the subject of various rulings, e.g., HQ ruling 967225 dated November 16, 2004 and NY J81909 dated March 24, 2003. In those rulings, it was decided that the diamond surface imparted the essential character to the articles. The same rationale applies here. The diamond surface which provides the cutting surface imparts the essential character to the PCD inserts. Thus, the PCD inserts are classified in heading 7116, HTSUS, which provides for Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed).

The applicable subheading for the PCD inserts will be 7116.20.5000, HTSUS, which provides for Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed): Of precious or semiprecious stone (natural, synthetic or reconstructed): Other: Other. The rate of duty will be Free.

Your inquiry does not provide enough information for us to give a classification ruling on PCBN inserts. Your request for a classification ruling should include a complete chemical breakdown, by percentage, by weight, of each component. When this information is available, you may wish to consider resubmission of your request. We are returning any related samples, exhibits, etc. If you decide to resubmit your request, please include all of the material that we have returned to you.

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 World Wide Web at http://www.usitc.gov/tata/hts/.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding heading 3824, contact National Import Specialist Richard Dunkel at (646) 733-3032. Questions regarding heading 7116 should be directed to National Import Specialist Neil Levy at (646) 733-3036.

Sincerely,

Robert B. Swierupski
Director
National Commodity Specialist Division