CLA-2-84:OT:RR:NC:N1:164
James Jenkins
Hypertherm Inc.
9 Great Hollow Rd.
Hanover, NH 03755
RE: The tariff classification of copper electrode blanks from the Netherlands and the country of origin of
finished copper electrodes
Dear Mr. Jenkins:
In your letter dated May 1, 2025, you requested a ruling regarding the tariff classification of copper electrode
blanks from the Netherlands and the country of origin of finished copper electrodes. Technical information
was submitted with your request.
The items under consideration for classification are described as copper electrode blanks used in the
manufacture of finished copper electrodes to be incorporated into plasma arc cutting machine torches. In your
letter, you explain that at importation, the blanks are not ready for direct use but have undergone machining
processes such that the blanks possess the dimensions and shape of a finished copper electrode. In the
Netherlands, copper rods are intricately machined to precise shape and tolerances using a Swiss-style
computer numerical control (CNC) lathe. The machining processes include turning, boring, threading,
drilling, milling, and grooving. Upon importation, the copper electrode blanks are ready for coating, laser
marking, and assembly with other components as preparation for direct use.
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 copper electrode blanks satisfy the criteria for “blanks” as they are
not ready for direct use but possess the approximate shape, dimensions, and outline of finished copper
electrodes used in plasma arc cutting machine torches. The submitted material indicates that the copper
electrode blanks possess the substantial material form of the finished electrodes. Although unfinished, the
physical and material qualities, particularly the inner and outer surface geometry, indicates that they are
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 copper electrode blanks have the essential character of the finished copper
electrodes and are classified accordingly.
The applicable subheading for the forged copper blanks 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 general rate of duty will be 4.7% ad valorem.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
8466.93.9885, HTSUS, listed above.
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 items under consideration for country of origin are described as finished copper electrodes for
incorporation into the torch of Hypertherm plasma arc cutting machines. During operation, the copper
electrode is threaded into the plasma arc cutting machine torch body. As an electrical current flows through
the copper electrode body and concentrates in the hafnium tip, it interacts with a stream of pressurized gas to
generate a high-temperature plasma arc used to cut a metal workpiece. In your letter, you state that copper is
selected as the primary material due to its electrical conductivity and thermal dissipation properties.
Furthermore, a hafnium tip is selected for its ability to maintain arc stability and extend the lifespan of the
electrode.
Manufacturing of the copper electrodes begins in the Netherlands where copper rod is precision-machined
using a Swiss-type CNC lathe. After turning, boring, threading, drilling, milling, and grooving operations, the
machined electrode blanks possess the approximate shape, dimensions and physical characteristics of the
finished copper electrodes. After importation into the United States, the unfinished electrode blanks undergo
surface finishing processes such as coating and laser marking and are assembled with O-rings and a hafnium
insert.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g.,
Headquarters Ruling Letter (HQ) 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).
Based on the submitted information, it is the opinion of this office that no article emerges from t he finishing
and simple assembly processes in the United States with a new name, character, or use different from that
possessed prior to processing. Although not ready for direct use, the copper electrode blank arrives in the
United States in the pre-determined and dedicated physical form of a finished copper electrode. Since the
copper electrode blank is of Netherlands origin and no substantial transformation takes place, the country of
origin of the finished copper electrode is the Netherlands.
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