CLA-2-38:OT:RR:NC:N2:237

Mohammed A. Rahoof
Import Manager
Yusen Air & Sea Services
405-T Victory Avenue
South San Francisco, CA 94080

RE: The tariff classification of raw or powdered graphite (CAS-7782-42-5) in colloidal or semi-colloidal suspension from Japan.

Dear Mr. Rahoof:

In your letter dated January 15, 2010, on behalf of the Hitachi Chemical Company, you requested a tariff classification ruling. You provided Material Safety Data Sheets for our review.

The products are described as MAGD (Artificial Graphite) and SMG (Artificial/Natural Graphite) consisting of raw or powdered graphite (CAS-7782-42-5) in colloidal or semi-colloidal suspension for use in lithium ion batteries.

In your letter you suggest classification under subheading 2803.00.0050, HTSUS, for Carbon (carbon blacks and other forms of carbon not elsewhere specified or included). However, colloidal or semi-colloidal graphite is excluded under this provision and must be classified elsewhere in the tariff as explained below.

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989). The EN to heading 28.03 excludes: (d) Artificial graphite; colloidal or semi-colloidal graphite (e.g., heading 38.01). Therefore, the EN to heading 38.01 (2) is applicable to your products and provides for: Colloidal or semi-colloidal graphite: (a) Colloidal graphite consists of finely divided natural or artificial graphite in colloidal suspension in water or in other media (e.g., alcohol, mineral oil), to which may be added small quantities of other products such as tannin or ammonia for the purpose of stabilising the suspension. Colloidal graphite is usually semi-liquid, and is mainly used for the manufacture of lubricating preparations or for its high electrical conductivity. (b) Semi-colloidal graphite (i.e., graphite in semi-colloidal suspension in water or in other media). Semi-colloidal graphite may be used for the preparation of graphited oils or for forming graphited surfaces. This category covers only graphite in colloidal or semi-colloidal suspension in any media, the graphite being the basic constituent. Your product is described as raw or powdered graphite (CAS-7782-42-5) in colloidal or semi-colloidal suspension.

The applicable subheading for raw or powdered graphite (CAS-7782-42-5) in colloidal or semi-colloidal suspension in water or in other media for use in lithium ion batteries will be 3801.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Colloidal or semi-colloidal graphite. The rate of duty will be free.

This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U. S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Washington, D.C. 20460, by calling the TSCA Assistance Line at (202) 554-1404, by Fax at (202) 554-5603, by e-mail to: [email protected] or by visiting their website at www.epa.gov.

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 Frank Cantone at (646) 733-3038.

Sincerely,

Robert B. Swierupski
Director
National Commodity Specialist Division