CLA-2-69:OT:RR:NC:N1:128

Mr. Robert L. Grasing
Sandler, Travis & Rosenberg, P.A.
24 Smith Street
Pawling, NY 12564

RE: The tariff classification of ceramic ferrules from Japan.

Dear Mr. Grasing:

In your letter dated October 31, 2018, you requested a tariff classification ruling on behalf of your client, Kyocera International Inc. Samples were submitted with your ruling request and will be retained by this office.

The merchandise under consideration is style number A0107S01A125510. It is a ceramic ferrule which measures approximately 2.499 milimeters in outer diameter by 10.5 milimeters long. The fiber channel opening is approximately .1255 milimeters. From the information you provided, it is comprised of 96% zirconium oxide (zirconia), with the balance consisting of yttrium oxide and alumina, and has been fired after shaping to a temperature which exceeds 800 degrees Celsius. You state that this ferrule is designed to join optical fibers, and does not amplify, regenerate, or modify any signals.

The applicable subheading for the ceramic ferrule, style number A0107S01A125510, will be 6914.90.4100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other ceramic articles: Other: Ceramic ferrules of alumina or zirconia, not exceeding 3 mm in diameter or 25 mm in length, having a fiber channel opening and/or ceramic mating sleeves of alumina or zirconia.” The general 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 the World Wide Web at https://hts.usitc.gov/current.

In your letter you also requested a ruling on the country of origin of the ferrule, style number A0107S01A125510.

Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "[c]ountry of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. 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" within the meaning of Part 134, Customs Regulations (19 CFR Part 134). Substantial transformation requires that "[t]here must be a transformation; a new and different article must emerge, ‘having distinctive name, character, or use.’" Anheuser-Busch Brewing Association v. United States, 207 U.S. 556, 28 S. Ct 204 (1908).

From the information you provided, the raw zirconia and other components are mixed together, extruded into a hollow tube, and fired at a temperature of 1350 degrees Celsius in Japan. In a subsequent email to this office, you informed us that at this stage, the ferrules measure approximately 2.6 milimeters in outer diameter by 240 milimeters long, and have a fiber channel opening of approximately .1255 milimeters in diameter. The ferrules are then shipped to China where they are cut to 10.5 milimeter lengths, and the outer diameter is ground to 2.499 milimeters; the diameter of the fiber channel opening does not change. The ferrules are then chamfered on both ends and shipped back to Japan for labeling before being exported to the United States.

19 CFR §102.20(l) requires, in relevant part, a change to heading 6901 through 6914 from any other chapter. The ferrules are shaped and fired in Japan, and do not exceed 3 milimeters in diameter at any point in the manufacturing process. Because of this, they remain classified in subheading 6914.90.4100, HTSUS, before and after the ferrules are cut to size and otherwise finished in China. Therefore, substantial transformation does not take place in China. The country of origin of the ferrules is Japan.

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 Nicole Sullivan at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division