Modification of HQ 086552; Impressed Current Anodes for Cathodic Protection; Electrical Machines and Apparatus; 8543

HQ 088175 May 30, 1991 CLA-2:CO:R:C:M 088175 MBR CATEGORY: Classification TARIFF NO.: 8543.80.90 Curtis B. Carson HARCO Technologies Corporation P.O. Box 721 Medina, Ohio 44258 RE: Modification of HQ 086552; Impressed Current Anodes for Cathodic Protection; Electrical Machines and Apparatus; 8543 Dear Mr. Carson: This is in reply to your letter of October 31, 1990, requesting reconsideration of HQ 086552 (dated March 16, 1990), regarding classification of Impressed Current Anodes for Cathodic Protection made from high silicon iron castings, imported from the U.K., under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). FACTS: The articles in issue here are described as AISI/ASTM A 518 Impressed Current Anodes for Cathodic Protection, made of high silicon iron castings, in tubular and solid configuration. Both are made by the centrifugal casting method, and contain 14.5 percent silicon, 4.5 percent chromium, and less than 1 percent each of manganese and carbon, by weight. This alloy is said to provide maximum electrical conductivity. As imported, the tubular articles are unmachined hollow castings with plain ends, typically from 2 inches to 5 inches in outside diameter and 5 feet to 8 feet long. The solid articles are round iron rods of solid cross section with dimensions similar to the tubular castings, except that the diameter of one end is enlarged and hollowed out to form a 2 inch aperture to receive a cable or lead wire. After importation, a copper core conductor cable (typically 10 ft. long) is inserted into the casting. The cable is secured in the open end of the anode by means of plywood end caps with drilled holes for the cable, or metal spacers, or dielectric -2- insulation packing or backfill, or polyethylene plugs and epoxy coating. In use, the completed anodes are connected to a transformer/ rectifier or other direct power source to electrolytically restrict the development of rust and corrosion in underground storage tanks and piping systems, submerged structures, ships' hulls, and in a variety of above-ground applications where high moisture levels are found. New information has been obtained from the Customs Laboratory which found that: "The sample is a casting made of alloyed iron (neither cast-iron, nor steel). It is not malleable." ISSUE: How are nonmalleable high silicon iron castings designed as Impressed Current Anodes for Cathodic Protection classified, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)? LAW AND ANALYSIS: The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part: ...classification shall be determined according to the terms of the headings and any relative section or chapter notes... HQ 086552, dated March 16, 1990, held that the tubular castings were classifiable under subheading 7304.59.80, HTSUSA, which provides for: "[t]ubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel: [o]ther: [o]ther: [o]ther: [o]ther." The solid castings were held classifiable in subheading 8543.90.80, HTSUSA, which provides for: "[e]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter: [p]arts: [o]ther." Heading 7304 is in Section XV. However, Section XV, Legal Note 1. (f), states: This section does not cover: (f) Articles of section XVI (machinery, mechanical appliances and electrical goods) Corrosion is an electro-chemical process. In use, the anodes are connected to a transformer/rectifier or other direct -3- power source to electrolytically restrict the development of rust and corrosion in underground storage tanks, piping systems, submerged structures, ships' hulls, and in a variety of above-ground applications where high moisture levels are found. This particular alloy is designed specifically for this purpose. You have submitted substantial additional information regarding the design, composition, and function of impressed current anodes. We are convinced that due to the composition of these anodes they are designed specifically as impressed current anodes and due to their high silicon content are too brittle to withstand machining into any other article. Furthermore, the ASTM A 518 "Standard Specification for Corrosion-Resistant High- Silicon Iron Castings" states that "Grade 3" is recommended for impressed current anodes. The submitted sample is within the parameters of "Grade 3" as delineated by the ASTM. See The SERVCO Company v. United States, 68 Cust. Ct. 83, C.D. 4341 (1972). Therefore, both the tubular and the solid casting impressed current anodes are classifiable in heading 8543. Furthermore, since the impressed current anodes, as imported, only require an electrical connector for a power source, we are of the opinion that these anodes are not classifiable under the parts provision, but are properly classifiable under the provision for electrical apparatus. HOLDING: Both the solid and the tubular casting impressed current anodes are classifiable under subheading 8543.80.90, HTSUSA, which provides for: "[e]lectrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter: [o]ther machines and apparatus: [o]ther." The rate of duty is 3.9 percent ad valorem. EFFECT ON OTHER RULINGS: In order to insure uniformity in Customs classification of this merchandise and eliminate uncertainty, we are modifying HQ 086552 to reflect the above classification, effective with the date of this letter. This ruling letter is a modification of HQ 086552, dated March 16, 1990, under authority of Section 19 CFR 177.9(d)(1). It is not to be applied retroactively to HQ 086552 (19 CFR 177.9(d)(2)), and will not affect past importations of your merchandise. However, HQ 086552 will not be valid precedent for future transactions. -4- We recognize that pending transactions may be adversely affected by this modification. If such a situation arises, you may notify this office and apply for relief from the binding effects of this decision, as may be warrented by the circumstances. Sincerely, John Durant, Director Commercial Rulings Division