The tariff classification of an unfinished turbine blade casting from Switzerland.

N022414 February 7, 2008 CLA-2-84:OT:RR:NC:N1:106 CATEGORY: Classification TARIFF NO.: 8411.99.9060 Ms. Kim Marrazzo Kintetsu World Express (USA), Inc. 1221 N. Mittel Blvd. Wooddale, IL 60191 RE: The tariff classification of an unfinished turbine blade casting from Switzerland. Dear Ms. Marrazzo: In your letter dated December 31, 2007 on behalf Power Systems Mfg. LLC, you requested a tariff classification ruling. You included photos and a description of the merchandise, its production and use. The merchandise at issue is referred to as an unfinished turbine blade casting. The casting is made in Switzerland of nickel-cobalt which is said to be shipped to Switzerland from the U.S. and North America. In Switzerland, the nickel-cobalt ingots are melted and poured into a mold to form unfinished turbine blades which at the time of import into the US have the essential character and shape of the finished blade, and though unfinished are recognizable as parts of turbines. Once in the US the blades will be subject to two machining processes in order to bring the blade to acceptable tolerances and to enhance cooling capabilities. The blades are then subjected to coating and heat treating prior to inspection. You state that the turbine blades are used in industrial hot gas combustion turbine engines for the purpose of generating electricity and steam. You suggest that the unfinished turbine blade casting would be correctly classified as other articles of nickel: other: other in 7508.90.5000 Harmonized Tariff Schedule of the United States (HTSUS) or as cobalt…and articles thereof…: …intermediate products of cobalt metallurgy; …: other in 8108.20.9000 HTSUS depending upon the alloy used. You further suggest that the unfinished turbine blade casting would correctly take the alternate classification as an article of metal (as defined in U.S. note 3(e) of this subchapter) manufactured in the United States or subjected to a process of manufacture in the United States, if exported for further processing, and if the exported article as processed outside the United States, or the article which results from the processing outside the United States, is returned to the United States for further processing in 9802.0060 HTSUS based upon the raw material often being from the US. These are not correct according to the General Rule of Interpretation to the HTSUS, 2 (a): “Any reference in a heading to an article shall be taken to include a reference to that article, incomplete or unfinished, provided that, as entered, the incomplete or finished article has the essential character of the complete or finished article.” Additionally, the melting of the US ingots and molding of the blades in Switzerland would be considered a substantial transformation of the raw material and not merely further processed. The applicable subheading for the unfinished turbine blade casting will be 8411.99.9060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for turbojets, and other gas turbines, and parts thereof: parts: other: other, parts of nonaircraft gas turbines: other. The general rate of duty will be 2.4% percent ad valorem.  Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Mark Palasek at 646-733-3013. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division