CLA-2-72:OT:RR:NC:1:117
Mr. James Caffentzis
Fitch, King and Caffentzis
250 Moonachie Road, 5th Floor
Moonachie, NJ 07074
RE: The tariff classification and admissibility of stainless steel ingots from Japan
Dear Mr. Caffentzis:
In your letter dated January 29, 2009 you requested a tariff classification ruling.
The items to be imported are described as stainless steel ingots produced in Japan in part from nickel cathodes manufactured in Canada. The raw material used in the production of the nickel cathodes in Canada is nickel mattes exported from Cuba. Nickel mattes are an intermediate material of metallurgical processing containing impurities.
Your inquiry correctly suggests a classification of 7218.10.0000 HTSUS for stainless steel ingots from Canada. The material composition of the ingots must conform to the definition of stainless steel in Chapter 72, Note 1(e), as an alloy steel containing, by weight 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements.
You have inquired, principally as to whether the importation of an item produced in any part from an article, in this case the nickel mattes, which is the growth, produce or manufacture of Cuba is allowable. You have linked this question to the classification of the final item being considered for importation and the issue of substantial transformation of mattes to cathodes and finally to ingots. This office does not dispute the substantial transformation for tariff purposes that would occur in the described processing.
However, substantial transformation for Customs tariff purposes does not qualify as authorization for importation of goods originating in any part from Cuban goods. Customs and Border Protection is responsible for enforcing other agency requirements at time of importation. The Office of Foreign Assets Control regulation, section 515.204(a) of 31 CFR, prohibits the importation of any merchandise that is made or derived in whole or in part of any article which is the growth, produce or manufacture of Cuba. An importation such as you described can only be authorized by the Office of Assets Control through an import license. We suggest that you submit a request for an import license to the U.S. Department of the Treasury, Office of Foreign Asset Control, Treasury Annex, 1500 Pennsylvania Avenue, NW, Washington, DC 20220, Attn: Licensing Division, telephone number (202) 622-2480.
The applicable subheading for the described stainless steel ingots will be 7218.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for stainless steel ingots and other primary forms. The rate of duty will be 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 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 the ruling, contact National Import Specialist Mary Ellen Laker at (646) 733-3020.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division