The tariff classification of copper rods from Turkey

 N303991 May 3, 2019 CLA-2-74:OT:RR:NC:N1:117 CATEGORY: Classification TARIFF NO.: 7407.10.5050; 9802.00.60 Mr. Davut Uskuplu Sark Wire Corp. 604 Clary Connector Eastanollee, GA 30538 RE: The tariff classification of copper rods from Turkey Dear Mr. Uskuplu: In your letter dated April 16, 2019, you requested a tariff classification ruling on copper rods from Turkey. The product to be imported is copper rod produced from United States (U.S.) origin industrial scrap. The U.S. origin industrial copper scrap is exported to Turkey where it is processed into a continuous 8 mm wire rod. At this point, the copper wire rod is returned to the U.S. where it is drawn into copper wire. The applicable subheading for the copper wire rod will be 7407.10.5050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for copper bars, rods, and profiles: of refined copper: bars and rods: other. The rate of duty will be 1 per cent 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 at https://hts.usitc.gov/current. You have also requested a ruling about the eligibility of subheading 9802.00.60, HTSUS, which provides a partial duty exemption for: [a]ny article of metal . . . manufactured in the United States or subject 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 for the United States for further processing. Subheading 9802.00.60, HTSUS, therefore imposes four requirements: (1) the merchandise must be an article of metal; (2) the metal must either be manufactured in the United States or subject to a process of manufacture in the United States; (3) the metal must be exported for further processing; and (4) the metal must be returned to the United States for further processing. For purposes of subheading 9802.00.60, HTSUS, “metal” includes “base metals enumerated in note 3 to section XV,” which in turn includes copper. Therefore, the copper scrap will qualify as an “article of metal” under subheading 9802.00.60, HTSUS, satisfying the first requirement. The copper scrap is produced by Sark Wire’s day-to-day processing operation of drawing copper rod into wire. If the copper rod is not of U.S. origin, as is the case here, there are two types of scrap to consider. Obsolete scrap is worn out, discarded metal articles. Industrial scrap is leftover metal from manufacturing operations performed on metal articles. The scrap is not worn out, discarded metal articles, so it would not be considered obsolete scrap. The scrap is leftover metal produced from manufacturing operations performed on metal articles, therefore it is considered industrial scrap. In HQ 555096, it was determined that in order for scrap to be eligible under the statute where foreign metal is involved, the scrap must be obtained from the processing of foreign metal in the U.S. The same ruling also found if the metal article from which the scrap was obtained was subjected to a variety of processes of manufacture in the United States including splitting, annealing, milling, rolling, brushing, and leveling, it would satisfy the second requirement. In this case, the non-U.S. origin copper rod from which the scrap is produced is subjected to drawing, annealing, bunching, and twisting. Therefore the copper scrap, which is a by-product of the annealing, bunching, and twisting of the non-U.S. origin copper rod qualifies under subheading 9802.00.60, HTSUS, satisfying the second requirement. The copper scrap is exported to Turkey where it is pressed into bales for charging in a rotary type anode casting furnace. The molten copper is cast as copper anodes. The anodes go through an electrolytic refining process resulting in copper cathodes that are then processed into a continuous 8 mm wire rod. The conversion of copper scrap to coils of copper wire rod not only changes the shape of the metal, but also imparts new and different characteristics to the copper, constituting “further processed” under this tariff provision, satisfying the third requirement. And finally, the copper rod is returned to the U.S. where it is drawn to create copper wire with sizes ranging from 0.16 mm to 2.6 mm. The wire is then annealed, bunched, and twisted to form specialty cable as per customer specifications. The drawing of the copper wire rod into wire, and the subsequent fabrication of specialty cable constitutes “further processed” in the U.S., satisfying the fourth requirement. Accordingly, the subject merchandise may be entered under subheading 9802.00.60 with duty only upon the value of the foreign processing contingent upon compliance with applicable regulations. 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 Angelia Amerson at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division