CLA-2-81:OT:RR:NC:N5:116
Mr. R. Kevin Williams
Clark Hill PLC
130 E Randolph Street
Chicago, IL 60601
RE: The tariff classification and eligibility of 9802.00.60 to titanium plate and sheet manufactured from ingots of United States (U.S.) origin in Austria and returned to the U.S. for further processing.
Dear Mr. Williams:
In your letter dated June 26, 2022, you requested a tariff classification ruling on behalf of your client, voestalpine High Performance Metals, LLC (“voestalpine”). In particular, you are seeking a determination as to whether certain titanium plate and sheet from Austria qualifies for a reduction in duty under subheading 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS).
The products to be imported are titanium plate and sheet produced from U.S. origin ingots. First, the titanium ingots are produced by Perryman Company in Houston, Pennsylvania from titanium sponge and industrial scrap and are then exported to Austria. In Austria, voestalpine’s sister company, voestalpine Bohler Bleche GmbH & Co KG (“Bohler Bleche”) will process the ingots into titanium slab. Bohler Bleche then processes the titanium slab into plates and sheets with various dimensions. At this point, the titanium plate and sheet will be returned to the U.S. where they will be sold to customers who will process the plate and sheet into aircraft components. You have included photos of the aircraft components.
The applicable subheading for the titanium plate and sheet will be 8108.90.6045, HTSUS, which provides for titanium and articles thereof, including waste and scrap: other: plates, sheets, strips, and foil. The general rate of duty is 15 percent ad valorem.
You have requested a determination on the eligibility of subheading 9802.00.60, HTSUS, which 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 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 XV,” which in turn includes titanium. Therefore, the titanium ingots will qualify as an “article of metal” satisfying the first requirement.
Perryman Company in Houston, Pennsylvania manufactures the titanium ingots from titanium sponge and industrial scrap. Therefore, processing the scrap into ingots satisfies the second requirement that the metal must either be manufactured in the U.S. or subject to a process of manufacture in the U.S.
The ingots are then exported to Austria where they are processed into titanium plate and sheet, constituting “further processed” under this tariff provision, satisfying the third requirement.
And finally, the titanium plate and sheet are returned to the U.S. where they are sold to customers who will process the plate and sheet into aircraft components. The processing involved with manufacturing aircraft components from titanium plate or sheet constitutes “further processed” in the U.S., satisfying the fourth requirement. Accordingly, the subject merchandise may be entered under subheading 9802.00.60, HTSUS, with duty only upon the value of the foreign processing contingent upon compliance with applicable regulations.
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 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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division