CLA-2-84:OT:RR:NC:N1:105
Mr. Damon Pike
Global Trade Strategies, Inc.
900 South US Highway One 105
Jupiter FL 33477
RE: The tariff classification of catalytic reduction substrates and catalysts from China
Dear Mr. Pike:
In your letter dated December 31, 2018, on behalf of Cormetech, Inc., you requested a tariff classification ruling.
You have described the subject merchandise as “homogeneous titanium-based ceramic selective catalytic reduction substrates and catalysts for the power generation, industrial, and petrochemical industries.” Specifically, the substrates and catalysts are used with boilers, turbines, and engines (e.g. stationary, marine and mobile) to filter harmful emissions from gases. The substrate and catalysts are composed mainly of titanium dioxide and small amounts of glass fiber, tungsten trioxide, and vanadium pentoxide. They can also contain stainless steel. You have stated that although the substrates and catalysts have similar chemical compositions, the substrates are incomplete catalysts that need to be further treated after importation in order to provide the necessary catalytic properties.
The substrates and catalyst are produced and imported in two forms of supporting structures: 1) honeycomb, or 2) plate. Both the honeycomb and plate-type substrate/catalyst elements will be imported in a steel module frame, which itself is inserted into the catalytic converter system by the end user/purchaser.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). Since the substrates and catalysts are made up of two or more components that if imported separately would be classifiable under different headings, we refer to GRI 3 to classify the items. GRI 3 (a) provides that a composite article is to be classified in the heading that provides the most specific description. It is our opinion that heading 8421, HTSUS, provides the most specific descriptions of the substrates and catalysts.
The applicable subheading for the catalytic reduction substrates and catalysts will be 8421.39.4000, HTSUS, which provides for Centrifuges including centrifugal dryers; filtering or purifying machinery and apparatus for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for gases: Other: Catalytic converters. The rate of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheading 8421.39.4000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8421.39.4000, HTSUS, listed above.
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.
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 Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division