CLA-2-71:OT:RR:NC:N4:433

Quintin Bustion
Customs Coordinator
Heraeus Precious Metals North America Conshohocken LLC
24 Union Hill Road
West Conshohocken, PA 19428

RE: The tariff classification of silver paste from Germany or Taiwan.

Dear Mr. Bustion:

In your letter dated October 11, 2017, you requested a tariff classification ruling. A preliminary data sheet, a safety data sheet, a bill of substances and photographs were provided.

The preliminary data sheet identifies the merchandise concerned as the SOL9641B, “Front-Side Silver Conductor.” Review of the submitted documentation indicates that the main component of the mixture is silver (Ag), which accounts for over 85% by weight of the conductor paste. The silver conductor paste is used in producing contact paths on solar cells, of which these paths provide the electrical contact for the wafers, improving the efficiency of solar cells. The paste is applied onto silicon solar cells through screen printing. After printing, the solar cells with the silver conductor paste will go through a firing process that results in the silver conductor paste thermally sintered into silver lines, which forms the silver electrodes for the solar cells.

The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRI will be applied, in hierarchical order of their appearance.

In pertinent part, Chapter 71, HTSUS, Legal Note 1 states: Subject to note 1 (a) of section VI and except as provided below (additional exclusion to Chapter 71), at [1 (b)], all articles consisting wholly or partly of precious metal or metal clad with precious metal are to be classified in this chapter. Upon review of Legal Note 1 (a) of section VI, HTSUS, and Legal Note 3 to Chapter 71, HTSUS, we find no exclusions pertinent to the merchandise concerned.

Specifically, upon examination of the exclusions to Chapter 71, HTSUS, Legal Notes 3 (c) and 3 (d), respectively, we find that the SOL9641B, “Front-Side Silver Conductor,” is not liquid lustres or similar preparations of a kind used in the ceramic, enamelling or glass industry (heading 3207) for decorating ceramics or glassware, nor is the SOL9641B, “Front-Side Silver Conductor,” a supported catalyst (heading 3815) used to initiate or accelerate certain chemical processes. Rather, the merchandise concerned is used to form silver electrodes for solar cells after sintering. Further review of the Legal Notes to Chapter 71, Legal Note 5, HTSUS, indicates: For the purposes of this chapter, any alloy (including a sintered mixture and an inter-metallic compound) containing precious metal is to be treated as an alloy of precious metal if any one precious metal constitutes as much as 2 percent, by weight, of the alloy. Alloys of precious metal are to be classified according to the following rules:

(a) An alloy containing 2 percent or more, by weight, of platinum is to be treated as an alloy of platinum;

(b) An alloy containing 2 percent or more, by weight, of gold but not platinum, or less than 2 percent, by weight, of platinum, is to be treated as an alloy of gold;

(c) Other alloys containing 2 percent or more, by weight, of silver are to be treated as alloys of silver.

It our position based on application of Legal Note 1 and Legal Note 5 (c) to Chapter 71 with no exclusions to the Chapter 71 that the SOL9641B, “Front-Side Silver Conductor,” composed of over 85% of silver with no platinum or gold, is an article of precious metal [silver] classifiable in heading 7115, HTSUS. See Headquarters rulings HQ 963178 dated November 23, 1999 and HQ H209834 dated March 22, 2017.

The applicable subheading for the SOL9641B, “Front-Side Silver Conductor, ” will be 7115.90.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other articles of precious metal or of metal clad with precious metal: Other, Other: Of silver, including metal clad with silver. The rate of duty will be 3% ad valorem.

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 https://hts.usitc.gov/current.

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 Neil H. Levy at [email protected].


Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division