October 11, 2006 CBP Bulletin Notice on Alloy Steel Powders
In the October 11, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin)(Vol. 40, No. 42), CBP issued a notice revoking one ruling, modifying one ruling, and revoking a treatment, as follows:
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Revocation/modification of rulings, revocation of treatment. CBP is revoking one ruling and modifying another regarding the classification of certain alloy steel powders. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the revocation and modification for the subject alloy steel powders, as well as the revocation of treatment, are effective for merchandise entered or withdrawn from warehouse for consumption on or after December 10, 2006.
Alloy steel powders. CBP states that the products at issue-the Wellmax NS-3 powder and the Synthetic Iron Oxide Powder B-3 -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 issuing HQ 968288 in order to revoke HQ 965437 and reclassify the subject B-3 powder under HTS 7205.21.0000 (duty-free) as alloy steel powder, rather than under 3824.90.90 (now 3824.90.91) as other chemical products and preparations of the chemical or allied industries, not elsewhere specified or included.
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).
CBP is also issuing HQ 968287 in order to modify HQ 961028 to reflect the correct legal analysis for the subject NS-3 powder.
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, Notes 7 and 8, CBP states that the subject products should be classified as powders of alloy steel under HTS 7205.21.0000.
new: HTS 7205.21.0000, duty-free; previous: 3824.90.91, 5%
(See ITT's Online Archives or 08/09/06 news, (Ref:06082250), for BP summary of proposed HQ 968288 and HQ 968287.)
October 11, 2006 CBP Bulletin (Vol. 40, No. 42) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol_10112006_no42/