The applicability of subheading 9802.00.60, HTSUS, to chromium iron alloy interconnect plates processed in Taiwan

N235663 December 18, 2012 CLA-2-85:OT:RR:NC:N1:112 CATEGORY: Classification TARIFF NO.: 9802.00.60 Dolores Hunt Regulatory Compliance Fedex Trade Networks 50 Cypress Lane Brisbane, CA 94005 RE: The applicability of subheading 9802.00.60, HTSUS, to chromium iron alloy interconnect plates processed in Taiwan Dear Ms. Hunt: In your letter dated November 20, 2012, you requested a tariff classification ruling on behalf of your client Bloom Energy Corporation. You specifically ask about the applicability of subheading 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS), to chromium iron alloy interconnect plates processed in Taiwan. Photographs, drawings, and a detailed description of the articles in question and the processes to which they are subjected were submitted. You state that chromium iron alloy interconnect plates, which are initially manufactured in the United States, are exported to Taiwan for processing and then re-imported into the United States for further processing and final manufacture into a finished product. Subheading 9802.00.60, HTSUS, provides a partial duty exemption for certain metal articles that are manufactured or subjected to a process of manufacture in the United States, exported for further processing, and returned for further processing in the United States. Under subheading 9802.00.60, HTSUS, duty is assessed only on the cost or value of the foreign processing, provided the documentary requirements of 19 C.F.R. 10.9 are satisfied. Subheading 9802.00.60 imposes a dual "further processing" requirement on qualifying metal articles: one foreign, and when returned, one domestic. In this case, raw interconnect plates, which are manufactured in the United Sates are shipped to Taiwan to undergo a process of grit blasting and the application of a specific coating. The coating imparts the properties of higher temperature conductivity and oxidation resistance. This foreign processing imparts new and different characteristics to the metal interconnect plates, constituting "further processing" to satisfy the initial processing requirement of subheading 9802.00.60, HTSUS. Upon re-importation into the U.S. the coated interconnect plates undergo further processing which consists of heat treatment, sealant application and high pressure compression. This secondary processing performed in the United States imparts new electrical conductivity properties. We find that this secondary processing in the United States constitutes “further processing” as required under 9802.00.60, HTSUS. Based on the facts presented the interconnect plates returned from Taiwan to the United States qualify for the partial duty exemption under subheading 9802.00.60, HTSUS, provided the documentary requirements set forth in 19 C.F.R. 10.9 are satisfied. 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 the National Import Specialist at (646) 733-3008. Sincerely, Thomas J. Russo Director National Commodity Specialist Division