CLA-2-98:OT:RR:NC:N4:462
Kimberly Atkinson
Heraeus Precious Metals North America
15524 Carmenita Rd.
Santa Fe Springs, CA 90670
RE: The tariff classification of spooled wire of precious metal
Dear Ms. Atkinson:
The merchandise under consideration is spooled wire of precious metal made from platinum and rhodium.
In your letter, you state that the production process is as follows:
The spent gauze, made of PtRh5-wire (99.9 % precious metal, specifically platinum and rhodium) is sent to
Germany from the United States. In Germany, the gauze is unpacked, impurities are burnt off, and the gauze
is remelted into grains. The grains are packaged and sent to Heraeus in Hanau - Germany to produce new
wire. There the grains are melted and cast into a gauze-ingot. The ingot is then drawn into a wire of the
desired thickness in several steps and repeatedly annealed in between to remove stresses from the material.
Finally, the finished wire made of precious metal is wound onto a spool and shipped back to the United
States.
The applicable subheading for the spooled wire of precious metal will be 7115.90.6000, HTSUS,
Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other articles of precious
metal or of metal clad with precious metal: other; other; other.” The rate of duty will be 4 percent ad valorem.
Your request also concerns the eligibility of the finished wire under 9802.00.5060, HTSUS. Subheading
9802.00.5060, HTSUS, provides a partial or complete duty exemption for articles returned to the U.S. after
having been exported to be advanced in value or improved in condition by any process of manufacture or
other means, provided that the documentary requirements of Section 10, Customs Regulations (19 CFR 10.8)
are satisfied.
The application of this tariff provision is precluded in circumstances where the operations performed abroad
destroy the identity of the articles or create new or commercially different articles. See A.F. Burstrom v.
United States, 44 CCPA 27, C.A.D. 631 (1956), aff?d C.D. 1752, 36 Cust. Ct. 46 (1956); Guardian Industries
Corporation v. United States, 3 CIT 9 (1982). Treatment under subheading 9802.00.5060, HTSUS, is also
precluded where the exported articles are incomplete for their intended use and the foreign processing
operation is a necessary step in the preparation or manufacture of the finished article.?
In our view, based on the facts presented, we find the processing in Germany produces such changes in
characteristics and use as to exceed an alteration and create a commercially different article. Accordingly, the
articles described above are not eligible for tariff treatment under the provisions of 9802.00.5060, HTSUS,
and would be subject to duty on the full value.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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, please contact
National Import Specialist Sandra Sary at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division