April 12, 2006 CBP Bulletin on Anodes/Cathodes Used in Electrolysis
In the April 12, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 16), CBP issued a notice revoking a classification ruling on anodes and cathodes used in electrolysis. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions.
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According to CBP, the revocation and modification are effective for merchandise entered or withdrawn from warehouse for consumption on or after June 12, 2006.
Revocation of One 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 issuing 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 finds that the subject merchandise is classified under HTS 8543.90.8880.
new: HTS 8543.90.8880, 2.6%; previous: 7115.90.6000, 4%.
(See ITT's Online Archives or 02/22/06 news, 06022240, for BP summary of proposed HQ 967941.)
April 12, 2006 (Vol. 40, No. 16) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_04122006_no16/