CLA-2-84:OT:RR:NC:N1:164

James Jenkins
Hypertherm, Inc.
9 Great Hollow Rd.
Hanover, NH 03755

RE: The tariff classification of a forged copper blank from Italy and the country of origin of a finished copper shield

Dear Mr. Jenkins:

In your letter dated March 17, 2025, you requested a ruling regarding the tariff classification of a forged copper blank from Italy and the country of origin of a finished copper shield. Technical information was submitted with your request and in subsequent correspondence.

The item under consideration for classification is described as a forged copper blank (Item 127435) used in the manufacture of the copper shield component of a plasma arc cutting machine torch. Although not imported ready for direct use, the forged copper blank is designed to specifications with the rough outline and “near-net” shape of a finished copper shield. You explain that the blank is designed in a manner that results in minimal material waste during finishing operations because it closely approximates the form of the finished shield. Prior to shipment to the United States, the forged copper blank also undergoes sandblasting with stainless steel balls (as a surface treatment), sorting, and packing.

Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order.

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). GRI 2(a) states that any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.

Furthermore, the ENs clarify the meaning of the term “blanks” in the context of GRI 2(a). The ENs to GRI 2(a) state, “The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term ‘blank’ means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part. . .”

Based on the submitted information, the forged copper blank satisfies the criteria for “blanks” as it is not ready for direct use but possesses the approximate shape, dimensions, and outline of a finished copper shield used in a plasma arc cutting machine torch. Although unfinished, these qualities, particularly the recessed inner surface, indicates that it is solely or principally designed for such use and neither suitable nor capable of another use. Under the authority of GRIs 1 and 2(a), the forged copper blank has the essential character of the finished copper shield and is classified accordingly.

The applicable subheading for the forged copper blank will be 8466.93.9885, HTSUS, which provides for Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand: Other: For machines of headings 8456 to 8461: Other: Other: Other: Other: Other: Other. The rate of duty will be 4.7% ad valorem.

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/.

The item under consideration for country of origin is described as a copper shield (Item 127267/220817) for incorporation into the torch of Hypertherm plasma arc cutting machines. During mechanized cutting operations, the shield protects the electrically active nozzle by providing a safety barrier against electrical shortage. It also acts as a thermal barrier for the nozzle which can reach up to 800 degrees Celsius during cutting. In your letter, you state that a plasma arc cutting machine must incorporate a shield to operate safely and effectively. Although classification is not requested for this item, you assert that it is classified in subheading 8466.93.9885, HTSUS. We agree.

In the United States, the finishing operation begins with a forged copper blank imported from Italy. The forged copper blank, which is imported semi-finished in the approximate size, shape, and outline of a finished copper shield, is loaded into a computer numerical control (CNC) Swiss lathe and undergoes facing, turning, boring, threading, and drilling operations which result in a “machined blank.” The machined blank undergoes various inspections and is then washed in an industrial cleaner. Next, the machined blank is laser marked with identifying information and logged into various software applications. Finally, machine operators perform a visual inspection of the finished copper shield before it is packaged for shipment.

When determining the country of origin, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). In this case, the forged copper blank from Italy arrives in the United States in an unfinished, yet recognizable form of a finished copper shield. It is forged to product-specific specifications to feature a defined conical shape and recessing of the inner surfaces. Additionally, it undergoes sandblasting with stainless steel balls for surface treatment prior to sorting and packing. In your request, you state that the forged copper blank is forged and prepared to specifications so that the machining processes in the United States are efficient and avoid material waste. While the machining in the United States involves several operations on a CNC Swiss lathe, the amount of material removed is minimal by design and the remaining copper does not undergo any changes in chemical or physical properties. In addition, the machining focuses on the precision of surface dimensions and finish, threading, and the placement of various holes. These additional features prepare the forged copper blank for its predetermined end use as a finished copper shield for incorporation into the torch of a plasma arc cutting machine.

Based on the submitted information, it is the opinion of this office that no article emerges from the machining processes in the United States with a new name, character, or use different from that possessed prior to processing. Since the forged copper blank is of Italian origin and no substantial transformation takes place, the country of origin of the finished copper shield is Italy.

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 (C.F.R.), 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 C.F.R. 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 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, please contact National Import Specialist Paul Taylor at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division