February 8, 2006 CBP Bulletin Notices on the 37 th Session of the WCO HSC and Anodes/Cathodes
In the February 8, 2006 issue of the U.S. Customs and Border ProtectionBulletin (CBP Bulletin) (Vol. 40, No. 7), CBP issued notices: (a) detailing the dates and draft agenda for the 37th Session of the Harmonized System Committee (HSC), and (b) proposing to revoke a classification ruling on anodes and cathodes used in electrolysis. CBP states that it is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
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CBP states that any party who has received an interpretive ruling or decision on merchandise subject to this notice, and/or any person involved in substantially identical transactions, should advise CBP by March 10, 2006, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions, may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
CBP also states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Dates and Draft Agenda for the 37th Harmonized System Committee Session
CBP has published a notice setting forth the dates and draft agenda for the 37th Session of the HSC of the World Customs Organization (WCO), which will be held from March 20 - 31, 2006 in Brussels, Belgium.
(CBP states that, among other things, the HSC (1) issues classification decisions on the interpretation of the Harmonized System in the form of published tariff classification opinions or amendments to the Explanatory Notes (ENs), and (2) considers amendments to the legal text of the Harmonized System.)
The draft list of agenda items includes (partial list):
Amendments to the Compendium of Classification Opinions to reflect the decision to classify an audio compact disc manufacturing system in subheading 8477.10;
Possible amendment of the EN to heading 95.04, arising from the classification of the "PS2";
Possible amendment to the ENs to reflect the classification of a certain type of footwear in subheading 6404.19;
Amendments to the Compendium of Classification Opinions to reflect the decision to classify two types of footwear in subheading 6404.19;
Study on the scope of Note 2 to Chapter 30 and of subheading 3002.10;
Classification of a two-wheeled electrical device for the transport of a person; and
Classification of frozen chicken cuts with addition of salt (Request from the European Commission).
Proposed Revocation of a Classification Ruling
Anodes and cathodes used in electrolysis. At issue are ruthenium-coated titanium anodes and platinum-coated nickel cathodes. The merchandise is used in electrolysis plants to electrolyze brine into chlorine and sodium hydroxide. The precious metal coatings, platinum and ruthenium, act as a catalyst to allow the proper chemical reactions to occur. The precious metals are not re-deposited onto other metal objects.
CBP is proposing to issue HQ 967941 in order to revoke NY R02374 and reclassify the subject merchandise under HTS 8543.90.8880 as other parts of electrical machines and apparatus, having individual functions, not specified or included elsewhere in [HTS Chapter 85]; rather than under HTS 7115.90.6000 as other articles of precious metal or of metal clad with precious metal.
(CBP notes that NY R02374 was based on the [mistaken] belief that the anodes and cathodes were of a type used in electroplating processes as a source of the precious metals.)
Note 3(k) of HTS Chapter 71 states that machinery, mechanical appliances or electrical goods, or parts thereof, of Section XVI (Chapters 84 and 85), are not covered by Chapter 71. As a result, CBP states that the issue is whether the subject anodes and cathodes are considered "parts" for tariff purposes, and if so, whether they are parts of electrical goods of Chapter 84 or 85.
CBP finds that the ruthenium-coated titanium anodes and platinum-coated nickel cathodes allow the proper chemical reactions to occur in the electrolytic process by which chlorine and sodium hydroxide are produced. Therefore, these articles satisfy the criteria for parts of machines and apparatus for electrolysis.
Additionally, Section XVI Note 2(b) states that other parts, if suitable for use solely and principally with a particular machine, or with a number of machines of the same headings, are to be classified with the machines of that kind. As the subject anodes and cathodes, by function and design appear to be principally, if not solely, used with machines and apparatus for electrolysis, CBP proposes to classify the subject merchandise in HTS 8543.90.88.80.
proposed: HTS 8543.90.8880, 2.6%; current: 7115.90.6000, 4%.
February 8, 2006 CBP Bulletin (Vol. 40, No. 7) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_02082006_no7/