The tariff classification and country of origin of incomplete cautery pens from China

N189020 November 8, 2011 CLA-2-90:OT:RR:NC:N4:405 CATEGORY: Classification TARIFF NO.: 9018.90.6000 Brian Bohanek Bovie Medical Corporation 5115 Ulmerton Road Clearwater, FL 33760 RE: The tariff classification and country of origin of incomplete cautery pens from China Dear Mr. Bohanek: In your letters dated July 27, and September 26, 2011, you requested a tariff classification and country of origin ruling. Samples were provided. The merchandise at issue consists of power handle/battery packs for surgical cautery pens. The import consists of (a) a battery pack containing either one or two batteries (AA or AAA, depending on the model) with a brass conductor strip; (b) a plastic body with plastic activator button and brass posts at the tip; (c) a plastic end cap with a spring in it; and (d) a plastic cover cap. After the imports are brought into the country, a wire tip is inserted into the brass posts on the end of the unit, and the finished cautery pens are sterilized and packaged. Cautery pens are instruments used by medical professionals to perform a number of surgical procedures. In your submission you indicate that high temperature cautery pens are primarily used for pinpoint hemostasis, evacuation of subungal hematomas, vasectomies, and sculpting woven grafts. Low temperature cautery pens are mainly used for opthamology. We note that cautery pens are also sold to individuals for non-medical purposes, for example by hobbyists using them to melt nylon thread (as indicated on Amazon.com). However, you indicate that the cautery pens you import and sell, sterilized, are intended only for medical purposes, and state that all of your sales are to authorized dealers, who in turn distribute the pens to physicians, veterinarians, etc. Furthermore, Harmonized System Explanatory Note I (A)(10) to Heading 9018 notes that the heading does include Cauteries (thermo, galvano, micro, etc) for human medicine and surgery, and the General Note to 9018 indicates that sterilization can be a useful factor in determining if 9018 applies. Based on the design drawings and photos you provided with your submission, the power handle/battery packs, despite being incomplete, as imported contain the essential character of a finished cautery pen. This is further made evident by the relatively minor processing that occurs in the United States after importation to turn the cautery pen into a finished, functioning article. Consequently, your import would be considered an incomplete or unfinished cautery pen, in accordance with General Rule of Interpretation 2(a). We agree that the applicable subheading for the power handle/battery pack for a cautery pen will be 9018.90.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Electro-surgical instruments and appliances… and parts and accessories thereof. The general rate of duty will be Free. Regarding the country of origin of the power handle/battery packs, you indicate that the articles are manufactured in China. You do not indicate that any non-Chinese components are used in their manufacture. On that basis, the country of origin of your imports will be China. 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 J. Sheridan at (646) 733-3012. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division