CLA-2-34:OT:RR:NC:2:236
Mr. Walter Belous
WTB Resources Corp.
38 Cord Place
East Norwich, NY 11732
RE: The tariff classification and country of origin of tungsten carbide powder and tungsten powder
Dear Mr. Belous:
In your ruling request dated February 12, 2013, you requested a country of origin ruling.
The products you intend to import are described as tungsten powder and tungsten carbide powder. The flowchart of production shows both the materials originating in China as ore. There are twelve steps of ore production, including mining, scaling and crushing, hand picking and optical or gravity sorting, grinding and milling, jig processing, classifier, dryer, and table flotation processing, drying, magnetic separation, production of ammonium paratungstate, and calcining the ammonium paratungstate in order to produce the tungsten oxide powder. The chemical symbol for tungsten is W. The tungsten oxide powder produced in China with an estimated value of $40.67 Kg W, is then exported to Korea. In Korea the tungsten oxide powder is described as being processed by hydrogen reduction into first 100% tungsten powder with an estimated value of $46.00 Kg W. The tungsten powder will either be sold on its own or further processed by carburization with carbon into tungsten carbide powder which is described as quantitatively the most important tungsten compound and is valued for its hardness. The tungsten carbide powder is described as 94% tungsten and 6% carbon. The estimated value of the tungsten carbide powder is $47.87 Kg W.
The applicable subheading for tungsten carbide powder will be 2849.90.3000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Carbides, whether or not chemically defined: Other: Of tungsten. The general rate of duty will be 5.5 percent ad valorem.
The applicable subheading for tungsten powder will be 8101.10.0000, HTSUS, which provides for Tungsten (wolfram) and articles thereof, including waste and scrap: Powders. The general rate of duty will be 7 percent ad valorem.
Section 134.1(b) of the Customs Regulations defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin.” A substantial transformation occurs when an article loses its separate identity and becomes a new article having a new name, character or use.
We find based on the information provided, that the origin of the tungsten carbide powder is Korea. We have determined that the carburization process in particular, which occurs in Korea, substantially transforms the reduced Chinese tungsten oxide into a new and distinct article of commerce. Carburization produces the new compound, tungsten carbide, by heating the reduced Chinese tungsten oxide (tungsten metal powder) and pure carbon powder at 900-2,200 degrees Celsius in pusher or batch furnaces.
We find based on the information provided, that the origin of the tungsten powder is China. The overwhelming amount of production for the tungsten powder occurs in China. We do not find that the hydrogen reduction processing of the tungsten powder in Korea is sufficient to change the country of origin and that the product intended to be imported into the U.S. has not been substantially transformed in Korea.
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., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, 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 Nuccio Fera tungsten carbide powder at (646) 733-3034 and National Import Specialist Mary Ellen Laker for the tungsten powder at (646) 733-3020.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division