CLA-2-28:OT:RR:NC:N3:136
Mr. Paul Anderson
The Anderson Law Firm, LLC
125 S. Wacker Drive, Suite 1825
Chicago, IL 60606
RE: The tariff classification and eligibility for a partial duty exemption under subheading 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS), of “Selenium Shot and Selenium Powder, CAS # 7782-49-2” from China
Dear Mr. Anderson:
In your letter dated January 14, 2019, you requested a tariff classification and eligibility for a partial duty exemption under subheading 9802.00.60, HTSUS, ruling, on behalf of your client, Vital Materials Co., Limited, on “Selenium Shot and Selenium Powder, CAS # 7782-49-2.”
In your submission, you state that subject product consists of selenium metal which is subjected to certain manufacturing processing operations in the United States and China. Vital, the importer, sources crude selenium or selenium-bearing raw material from a variety of countries including the United States. The crude selenium is extracted from the selenium-containing raw material, such as anode slime, mostly from by-products of copper refining. The selenium is treated and then refined in the United States to a specified level of concentration prior to export to China. This selenium concentrate is then shipped to Vital's plant in China for further processing there. The selenium concentrate level of purity is at 90-98% prior to export to China, and the purity level is upgraded to 99.5% - 99.9999% through a series of processing steps done in China.
While at the plant in China, the selenium concentrate will be converted into selenium shot or powder. The process for making the selenium shot is to subject the concentrate to a melting process and then the material is molded to shot-shape. Powder is made through a process of crushing, milling, sieving and final processing. The shot or powder is then shipped back to the United States where it is sold by Vital to unrelated customers for further processing and use in manufacturing.
The applicable subheading for “Selenium Shot and Selenium Powder, CAS # 7782-49-2” will be 2804.90.0000, HTSUS, which provides for Hydrogen, rare gases and other nonmetals: Selenium. The general rate of duty will be free.
You have also inquired about the eligibility for a partial duty exemption under subheading 9802.00.60, HTSUS. Subheading 9802.00.60, HTSUS, provides a partial duty exemption for:
[a]ny article of metal . . . manufactured in the United States or subject to a process of manufacture in the United States, if exported for further processing, and if the exported article as processed outside the United States, or the article which results from the processing outside the United States, is returned for the United States for further processing.
Subheading 9802.00.60, HTSUS, therefore imposes four requirements: (1) the exported merchandise must be an article of metal; (2) the metal must either be manufactured in the United States or subject to a process of manufacture in the United States; (3) the metal must be exported for further processing; and (4) the metal must be returned to the United States for further processing.
For purposes of subheading 9802.00.60, HTSUS, “metal” includes base metals enumerated in Note 3 to Section VX and U.S. Note 3(e) to Chapter 98, HTSUS. Therefore, the selenium concentrate exported from the United States, will qualify as “article[s] of metal” under subheading 9802.00.60, HTSUS. You also state that the imported “Selenium Shot and Selenium Powder, CAS # 7782-49-2” will be sold to unrelated companies in the United States to be further processed into various products, including the manufacture of glass and production of lead acid batteries.
Based on the presented scenario, the imported “Selenium Shot and Selenium Powder, CAS # 7782-49-2” manufactured in China from selenium concentrate exported from the United States and further processed in the United States after importation, will be eligible for a partial duty exemption under subheading 9802.00.60, HTSUS, when it is imported into the United States.
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 subheadings 2804.90.0000 HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheadings 2804.90.0000 HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 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 Nuccio Fera at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division