CLA-2-26:RR:NC:1:118 C80325

Mr. Derek J. Benham
President
BenMet NY
475 Fifth Avenue, Ste 606
New York, NY 10017

RE: The applicability of heading 98.02 and the tariff classification of roasted molybdenum concentrate from China.

Dear Mr. Benham:

In your letter dated September 24, 1997, you requested a tariff classification ruling.

You state you will be shipping U.S. molybdenum concentrate to China to be toll processed into roasted molybdenum concentrate. This roasted molybdenum concentrate will be returned to the U.S. to be used to manufacture ferro-molybdenum.

Roasting of the molybdenum is a processing step necessary before the product may be put to its initial use. When the article exported from the U.S. is incomplete for its intended use and requires a manufacturing process to make it complete, that process is not an alteration under subheading 9802.00.50, Harmonized Tariff Schedule of the United States (HTS). Accordingly, the roasting is not considered a repair or alteration of an already complete article and the returned roasted molybdenum concentrate is not eligible for subheading 9802.00.50, HTS, treatment.

The applicable subheading for the roasted molybdenum concentrate will be 2613.10.0000, HTS, which provides for Molybdenum ores and concentrates: Roasted. The rate of duty will be 13›/kg on molybdenum content plus 1.8 percent ad valorem.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kathy Campanelli at 212-466-5492.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division