August 9, 2006 CBP Bulletin Notice on Alloy Steel Powder
In the August 9, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBPBulletin) (Vol. 40, No. 33), CBP issued a notice proposing to modify a classification ruling and proposing to revoke a classification ruling on alloy steel powder. 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 a contrary ruling or decision on the merchandise that is subject to the proposed rulings, or any party involved with a substantially identical transaction, should advise CBP by September 8, 2006, the date that written comments on the proposed rulings 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.
In addition, CBP states that this notice covers any rulings on the subject merchandise that may exist but has not been specifically identified.
Proposed Modification and Revocation of Two Classification Rulings
Alloy steel powder. CBP states that the products at issue-the Wellmax NS-3 powder and the Synthetic Iron Oxide Powder 3-B-are mixtures of metal alloy powders and inorganic compounds used to make magnetic coatings for data storage tapes and in the powder injection molding of various parts and components.
CBP is proposing to issue HQ 968288 in order to revoke HQ 965437 and reclassify the subject powder under HTS 7205.21.0000 (duty-free) as alloy steel powder, rather than under 3824.90.90 as other chemical products and preparations of the chemical or allied industries, not elsewhere specified or included.
CBP is also proposing to issue HQ 968287 in order to modify HQ 961028 to reflect the correct legal analysis for the subject NS-3 powder.
Section XV, Note 7 states, in relevant part, that articles of mixed materials treated as articles of base metal under the General Rules of Interpretation (GRIs) containing two or more base metals are to be treated as articles of the base metal that predominates by weight over each of the other metals. Among other things, CBP finds that because the B-3 powder has 0.01% carbon, by weight, it qualifies as steel, under Chapter 72, Note 1(d), and has the necessary alloying elements (i.e., aluminum, cobalt, and manganese) to qualify as other alloy steel under Chapter 72, Note 1(f).
With respect to the NS-3 powder, CBP has previously concluded that "steel predominates by weight over the other base metals, thus this product is a steel alloy; however, it does not contain sufficient boron and cobalt to be considered an other alloy steel." For these and other reasons, CBP finds that the NS-3 product is a powder under Section XV, Note 8(b).
Therefore, under the authority of GRI 1 and Section XV, Note 7, CBP states that the products should be classified as powders of alloy steel under HTS 7205.21.0000.
proposed: HTS 7205.21.0000, duty-free; current: 3824.90.91, 5% (in addition, see HTS 9901.00.50, 9901.00.52, 9902.03.24, 9902.29.83, and 9902.38.10).
August 9, 2006 CBP Bulletin (Vol. 40, No. 33) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_08092006_no33/