Neodymium-Iron Alloy from China

HQ 955158 November 10, 1993 CLA-2 CO:R:C:F 955158 ALS CATEGORY: Classification TARIFF NO.: 3823.90.5050 Mr. Alan Chalup Cometals, Inc. One Penn Plaza New York, NY 10119 RE: Neodymium-Iron Alloy from China Dear Mr. Chalup: This is reference to your request of August 20, 1993, for a binding ruling on the classification of the subject product. FACTS: The product is an alloy composed of 85 percent Neodymium (CAS 7440-00-8) and 15 percent iron (CAS 7439-89-6). According to the inquirer the product is not commonly used in the manufacture of other alloys. It will be used to make permanent magnets. ISSUE: What is the classification of the subject product? LAW AND ANALYSIS: Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. If GRI 1 fails to classify the goods - 2 - and if the heading and legal notes do not otherwise require, the remaining GRI's are applied, taken in order. In considering the classification of the product we note that it is not commonly used in the manufacture of alloys. It, therefore, cannot be classified as a ferroalloy. The inquirer indicated that the product is used in the production of permanent magnets. The product is apparently a mixture of two elements, a rare earth with a base metal and is classifiable in heading 3823, HTSUSA. HOLDING: An alloy of 85 percent neodymium and 15 percent iron is classifiable in subheading 3823.90.5050, HTSUSA, and is subject to a general rate of duty of 5 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings Division