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Request for Binding Ruling; Classification of seamless 3003 alloy aluminum tubular cores
HQ H321350 October 26, 2020 OT:RR:CTF:CPMM H321350 AAK/MMM CATEGORY: Classification TARIFF NO: 7608.20.0030, 9817.00.9080, 9903.85.01 Mr. Paul Vroman DHL Global Forwarding 2660 20th Street Port Huron, MI 48059 RE: Request for Binding Ruling; Classification of seamless 3003 alloy aluminum tubular cores Dear Mr. Vroman: This is in response to your request of May 28, 2019, on behalf of your client, Lexmark International, Inc., to the Director, National Commodity Specialist Division, Customs and Border Protection (CBP), for a binding ruling regarding the classification of seamless 3003 alloy aluminum tubular cores imported from a Foreign Trade Zone (FTZ) under the Harmonized Tariff Schedule of the United States (HTSUS). Your request was forwarded to our office for reply, which is set forth below. FACTS: The subject merchandise are seamless 3003 alloy aluminum tubular cores. They were originally shipped to a FTZ to be manufactured into photoconductor drums. At one of three stages in the manufacture process, however, the cores were deemed unfit as photoconductor drums for various reasons. As raw aluminum, the cores can be unfit from damage such as dents or scratches, size issues, and other quality problems. Once anodized, the cores can be unfit due to the same damage, anodization issues such as non-uniform application, process failure, or incorrect settings, and other quality problems. After being coated, the cores can be unfit for similar damage, previously uncaught quality problems, and non-recoverable coating defects. Moreover, coated cores would only be deemed unfit if the defect cannot be reversed through a stripping process. However unfit, the subject cores are stored in a scrap metal collection bin and eventually sold and imported from the FTZ to a local scrap metal processing company, which will re-melt the cores to recover their metal content for production into other aluminum products. ISSUE: Whether the instant seamless 3003 alloy aluminum tubular cores are classified in heading 7602, HTSUS as “Aluminum waste and scrap”; in heading 7608, HTSUS as “Aluminum tubes and pipes”; or in subheading 9817.00.90, HTSUS as “articles of metal . . . to be used in remanufacture by melting . . .: Other.” LAW AND ANALYSIS: Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings 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 or notes do not require otherwise, the remaining GRIs 2 through 6 may be applied. The HTSUS provisions under consideration are as follows: 7602: Aluminum waste and scrap: * * * 7608: Aluminum tubes and pipes: * * * Unwrought metal including remelt scrap ingot (except copper, lead, zinc and tungsten) in the form of pigs, ingots or billets (a) which are defective or damaged, or have been produced from melted down metal waste and scrap for convenience in handling and transportation without sweetening, alloying, fluxing or deliberate purifying, and (b) which cannot be commercially used without re-manufacture; relaying or rerolling rails; and articles of metal (except articles of lead, of zinc or of tungsten, and not including metal-bearing materials provided for in section VI, chapter 26 or subheading 8548.10 and not including unwrought metal provided for in chapters 72-81) to be used in remanufacture by melting or to be processed by shredding, shearing, compacting or similar processing which renders them fit only for the recovery of the metal content: 9817.00.90: Other: * * * Note 8(a) to Section XV defines “waste” and “scrap” as follows: Metal waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons. Note 1(e) to Chapter 76 defines “tubes” and “pipes” as follows: Hollow products, coiled or not, which have a uniform cross section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thickness. . . . Tubes and pipes of the foregoing cross sections may be polished, coated, bent, threaded, drilled, waisted, expanded, cone-shaped or fitted with flanges, collars or rings. Additional U.S. Note 1 to Section XV provides: For the purposes of this section, the term "unwrought" refers to metal, whether or not refined, in the form of ingots, blocks, lumps, billets, cakes, slabs, pigs, cathodes, anodes, briquettes, cubes, sticks, grains, sponge, pellets, flattened pellets, rounds, rondelles, shot and similar manufactured primary forms, but does not cover rolled, forged, drawn or extruded products, tubular products or cast or sintered forms which have been machined or processed otherwise than by simple trimming, scalping or descaling. U.S. Note 1 to Chapter 98 provides: The provisions of this chapter are not subject to the rule of relative specificity in general rule of interpretation 3(a). Any article which is described in any provision in this chapter is classifiable in said provision if the conditions and requirements thereof and of any applicable regulations are met. Statistical Note 1 to Subchapter XVII of Chapter 98 states: For statistical reporting of merchandise under subheading[] … 9817.00.90 …: (a) Report the 8-digit number (or 10-digit number, if any) found in this subchapter in addition to the 10-digit number appearing in chapters 1-97 which would be applicable but for the provisions of this subchapter; and (b) The quantities reported should be in the units provided in chapters 1-97. * * * * The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither 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, 35128 (August 23, 1989). The General EN to Chapter 76 states, in pertinent part: The special properties of aluminum and its alloys favour their wide use: in the aircraft, automobile or shipbuilding industries; in the building industry; in the construction of railway or tramway rolling-stock; in the electrical industry (e.g., as cables); for all types of containers (reservoirs and vats of all sizes, transport casks, drums, etc.); for household or kitchen utensils; for the manufacture of foil; etc. EN 76.02 provides, in pertinent part: The provisions concerning waste and scrap in the Explanatory Note to heading 72.04 apply, mutatis mutandis, to this heading. EN 72.04 provides, in pertinent part: But the heading excludes articles which, with or without repair or renovation, can be re-used for their former purposes or can be adapted for other uses; it also excludes articles which can be refashioned into other goods without first being recovered as metal. Thus, it excludes, for example, structural steelwork usable after renewal of worn-out parts; worn railway lines which are usable as pitprops or may be converted into other articles by re-rolling; steel files capable of re-use after cleaning and sharpening. * * * * Classification in Chapter 76, HTSUS In your request for a binding ruling, you question whether the seamless 3003 alloy aluminum tubular cores are classifiable in heading 7602, HTSUS as “Aluminum waste and scrap.” As the terms “waste” and “scrap” are defined, however, the cores cannot be considered as such under heading 7602, HTSUS. Rather, the cores are classifiable within heading 7608, HTSUS as “Aluminum tubes and pipes.” The seamless 3003 alloy aluminum tubular cores are not aluminum waste and scrap under heading 7602, HTSUS. Note 8(a) to Section XV defines alumin
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings 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 or notes do not require otherwise, the remaining GRIs 2 through 6 may be applied.The HTSUS provisions under consideration are as follows:7602: Aluminum waste and scrap: * * *7608: Aluminum tubes and pipes: * * *Unwrought metal including remelt scrap ingot (except copper, lead, zinc and tungsten) in the form of pigs, ingots or billets (a) which are defective or damaged, or have been produced from melted down metal waste and scrap for convenience in handling and transportation without sweetening, alloying, fluxing or deliberate purifying, and (b) which cannot be commercially used without re-manufacture; relaying or rerolling rails; and articles of metal (except articles of lead, of zinc or of tungsten, and not including metal-bearing materials provided for in section VI, chapter 26 or subheading 8548.10 and notincluding unwrought metal provided for in chapters 72-81) to be used in remanufacture by melting or to be processed by shredding, shearing, compacting or similar processing which renders them fit only for the recovery of the metal content:9817.00.90: Other: * * *Note 8(a) to Section XV defines “waste” and “scrap” as follows:Metal waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons.Note 1(e) to Chapter 76 defines “tubes” and “pipes” as follows:Hollow products, coiled or not, which have a uniform cross section with only one enclosed void along their whole length in the shape of circles, ovals, rectangles (including squares), equilateral triangles or regular convex polygons, and which have a uniform wall thick