H336366

HQ H336366 April 11, 2024 OT:RR:CTF:VS H336366 AM CATEGORY: Origin, Classification James Lee Ebang Holdings International Inc. 12 Marina View, #20-02B Singapore 018961 RE: Tariff Classification and Country of Origin of Monocrystalline Silicon Ingots; Substantial Transformation; Section 301 Trade Remedy Duties Dear Mr. Lee: This is in response to your inquiry, dated November 30, 2023, requesting a binding ruling with respect to the country of origin and tariff classification of monocrystalline silicon ingots. Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for response. Along with your ruling request, you submitted illustrations of the ingots, documents detailing the manufacturing process, as well as a composition breakdown of the merchandise. FACTS: The merchandise at issue is a monocrystalline silicon ingot. This ingot will be imported into the United States and used in the production of solar cells. Electronic-grade polysilicon sourced from China (either from Sichuan, Yunnan, or Inner Mongolia) is used to produce monocrystalline silicon ingots, either in China or Malaysia. The ingot production process is described as the Czochralski method. You state the process is similar to that in New York Ruling Letter (“NY”) N328489, dated October 17, 2022, which describes the following: Preparing the electronic-grade polysilicon for ingot formation: The removal of surface impurities using chemical treatments. The electronic-grade polysilicon is placed in cascading acid baths of nitric acid (HNO3) and hydrofluoric acid (HF), which act to etch and remove the outside surface of the EGS to a depth of about 300 - 400um. The acids are removed by rinsing the EGS in deionized water. The electronic-grade polysilicon crystals are dried in air-free furnaces and packed into polyethylene bags to await further processing. Preparation of High Purity Polysilicon: The electronic-grade polysilicon crystals are placed into a quartz crucible for heating. The crucible is heated until the polysilicon crystals are molten (at 1425° C) in the presence of an inert gas, such as argon, which prevents the reintroduction of contaminants. The creation of a wafer with a positive or negative current imparts the essential character of a semiconductor wafer. These positive or negative currents are made by doping, which is the intentional introduction of contaminants. P-doping creates a positive current. The opposite occurs in N-doping, which creates a negative current. Growing or “Pulling” the Ingot: A seed crystal is a small piece of single crystal material from which a larger desired crystal of identical structure is to be grown. The specifically designed seed crystal (undoped, B, P or other doping agent) is precisely oriented on a rod and dipped into the saturated molten solution. The seed crystal that is attached to the rod is dipped to just below the surface of the molten silicon. The rod is then drawn or “pulled” upwards very slowly, at a rate of 30 - 40mm per hour and simultaneously rotated as the crucible rotates in the opposite direction. By controlling the temperature gradient, rate of pulling, and speed of rotations, it is possible to extract a large, single crystal. The molten semiconductor material will slowly solidify into a crystal based on the lattice structure of the seed, resulting in a rod of single or monocrystalline semiconductor material. The ingot, or “boule”, can vary in size from 2 inches (50.8mm) to 8 inches (200mm) in diameter and up to a meter long. Testing the Semiconductor Ingot: Test wafers/disks are cut using a water cooled saw from the semiconductor ingot. The disks are then tested to determine and evaluate their physical and electrical properties. Each wafer is then measured for specific electromechanical parameters. In order to eliminate the resistivity influence of thermal donors, the ingots are annealed in a special furnace, ranging from 100°C to 740°C. Mechanical Treatment of Ingots: After all the necessary measurements and annealing is completed, the silicon ingot is subjected to mechanical processing to give it the required geometric parameters, such as diameter, length, and primary and secondary flat. However, you state that the process in this case will differ from NY N328489, in that the final outputs will be larger and longer in size, ranging from 6 inches to 12 inches in diameter, and from 32 inches to 60 inches in length; and the silicon ingots will be cut into square rods. After cutting, the four corners of the square rod will appear as arcs. You state that polycrystalline is composed of countless small single crystals of silicon with an incomplete crystal structure. Due to this structure, the polysilicon is relatively inhomogeneous with high surface roughness and grain boundary density. Additionally, polycrystalline silicon has higher optical scattering and lower electric properties. In contrast, you state the monocrystalline silicon has a complete crystal structure and the entire silicon wafer is composed of a large single crystal resulting in the monocrystalline silicon possessing more uniform physical properties with a smoother surface and lower grain boundary density. Moreover, monocrystalline silicon has lower optical scattering and higher electronic properties, making it widely used in integrated circuits, photovoltaic cells, and optical devices. You state chemical composition of the monocrystalline silicon ingots after production is 99.99% Silicon (Si). The corresponding Chemical Abstracts Service (“CAS”) number is 7440-21-3. The rest are impurities containing Carbon, Tellurium, and Aluminum. ISSUE: What is the country of origin of monocrystalline silicon ingots produced in Malaysia? What is the tariff classification of the monocrystalline silicon ingots? LAW & ANALYSIS: Country of Origin When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling (“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 Nat’l Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). If the manufacturing or combining process is a minor one which leaves the identity of the article intact, a substantial transformation has not occurred. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940). To determine whether a substantial transformation occurs, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative. In NY N328489, dated October 17, 2022, CBP held that monocrystalline silicon ingots were substantially transformed into polysilicon wafers after the production process in the Ukraine using the Czochralski method. The Czochralski method is a process of crystal growth in which a seed crystal, mounted on a rod, is dipped into a crucible of molten material (polycrystalline silicon), and shaped into cylindrical silicon boules from the molten material. See also N

Country of OriginWhen determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling (“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 Nat’l Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993). If the manufacturing or combining process is a minor one which leaves the identity of the article intact, a substantial transformation has not occurred. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940).To determine whether a substantial transformation occurs, CBP considers the totality of the circumstances and makes such determinations on a case-by-case basis. The country of origin of the item’s components, extent of the processing that occurs within a country, and whether such processing renders a product with a new name, character, and use are primary considerations in such cases. Additionally, factors such as the resources expended on product design and development, the extent and nature of post-assembly inspection and testing procedures, and worker skill required during the actual manufacturing process will be considered when determining whether a substantial transformation has occurred. No one factor is determinative.In NY N328489, dated October 17, 2022, CBP held that monocrystalline silicon ingots were substantially transformed into polysilicon wafers after the production process in the Ukraine using the Czochralski method. The Czochralski method is a process of crystal growth in which a seed crystal, mounted on a rod, is dipped into a crucible of mo