CLA-2-74:OT:RR:NC:N5:116
Hyeongjun Kim
KBI Metal
66 Daesosandan-ro, Daeso-myeon, Chungbuk
Eumsung-gun, 27671
South Korea
RE: The tariff classification and eligibility under 9802.00.60 of copper rod and wire produced from scrap
generated as a byproduct of manufacture in the U.S. that is sent to South Korea and returned to the U.S. for
further processing
Dear Mr. Kim:
In your letter dated October 28, 2025, you requested a tariff classification ruling. In particular, you are
seeking a determination as to whether copper rod and wire from South Korea qualifies for a reduction in duty
under subheading 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS).
The products under consideration are copper wire and rod produced from copper scrap generated from a
process of manufacture in the U.S. Made of refined copper, the wire and rod are circular in form and will be
imported in coils. The wire ranges in diameter from 1.63 mm to 2.58 mm.
The applicable subheading for the copper rod will be 7407.10.5050, HTSUS, which provides for copper bars,
rods and profiles: of refined copper: bars and rods: other. The rate of duty will be 1 percent ad valorem.
The applicable subheading for the copper wire will be 7408.19.0030, HTSUS, which provides for copper
wire: of refined copper: other: with a maximum cross-sectional dimension of 3 mm or less. The rate of duty
will be 3 percent ad valorem.
According to your submission, copper scrap derived from a process of manufacture in the U.S. is shipped to
South Korea where it is made into copper rod and wire. In South Korea, the scrap is melted, cast into rod,
rolled to reduce its diameter, inspected, and packaged for shipment to the U.S. The copper wire undergoes a
similar manufacturing process as described above for the rod with the additional step of being drawn into
wire. Finally, the rod and wire are then sent to wire and cable manufacturers in the U.S. where they are
further processed (i.e., drawn, stranded, insulated, sheathed, etc.) into electric conductors and power cables.
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 copper. Therefore, the copper scrap will qualify as an “article of metal”
satisfying the first requirement.
The copper scrap is collected from various U.S. recycling facilities and is a byproduct of manufacturing
operations performed in the U.S. As such, 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. is met.
The scrap is then exported to South Korea where it is processed into copper rod and wire, constituting
“further processed” under this tariff provision, satisfying the third requirement.
And finally, the copper rod and wire are sent to wire and cable manufacturers in the U. S. where they undergo
further processing such as drawing, stranding, insulation, cabling, sheathing, and packaging. As such, the
further processing requirement is met. Accordingly, the subject merchandise may be entered under
subheading 9802.00.60, HTSUS.
You are requesting classification in subheading 9802.00.60, HTSUS, to seek relief from the effects of the
imposition of Section 232 tariffs on copper products. When determining the country of origin for purposes of
applying current trade remedies under Section 232, 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).
You state that the copper scrap resulting from a process of manufacture in the U.S. is sent to South Korea
where it is melted, cast into rod or drawn into wire, rolled to reduce its diameter, inspected, and packaged for
shipment to the U.S. This office finds that the processes performed in South Korea result in a substantial
transformation. As such, the country of origin for purposes of the applicability of trade remedies is South
Korea. Please be advised that goods entered under subheading 9802.00.60, HTSUS, are subject to Section
232 duties, but unlike other goods, these duties are calculated on the entire value of the article, not just the
value added abroad.
On July 30, 2025, Presidential proclamation 10962 imposed additional tariffs on certain semi-finished copper
and intensive copper derivative products. Additional duties for semi-finished copper and intensive copper
derivative products of 50 percent upon the value of the copper content are reflected in Chapter 99, heading
9903.78.01. At the time of entry, for the copper content you must report heading 9903.78.01, in addition to
subheadings 7407.10.5050 and 7408.19.0030, HTSUS.
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 South Korea
will be subject to an additional 15 percent ad valorem rate of duty. Your product falls within an excepted
subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product
classification, i.e. 9903.01.33, in addition to subheadings 7407.10.5050 and 7408.19.0030, HTSUS, listed
above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 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 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,
(for)
Deborah Marinucci
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division