The applicability of 9802.00.6000, Harmonized Tariff Schedule of the United States (HTSUS), to copper wire rod and wire

N305290 July 25, 2019 CLA-2-74:OT:RR:NC:N1:116 CATEGORY: Classification TARIFF NO.: 9802.00.6000 Ms. Christine Berghofer PricewaterhouseCoopers (PwC) LLP 300 Madison Avenue New York, NY 10075 RE: The applicability of 9802.00.6000, Harmonized Tariff Schedule of the United States (HTSUS), to copper wire rod and wire Dear Ms. Berghofer: In your letter dated July 15, 2019, you requested a tariff classification ruling on behalf of your client, Cunext Group (“Cunext”). You specifically ask about the applicability of subheading 9802.00.6000, Harmonized Tariff Schedule of the United States (HTSUS), to copper wire rod and wire from Spain. The products to be imported are copper wire rod or wire produced from United States (U.S.) origin industrial scrap. You indicate that Cunext will purchase pure U.S. copper scrap which will be exported to Spain where it will be manufactured into copper wire rod or wire. The wire rod or wire will then be returned to the U.S. for further processing. Subheading 9802.00.6000, HTSUS, 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. In order for merchandise to qualify under subheading 9802.00.6000, HTSUS, four requirements must be met: (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 9802.00.6000, 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 9802.00.6000, HTSUS, satisfying the first requirement. You state that the original copper material originates in the United States (U.S.), and that the copper industrial waste/scrap results from processes performed in the U.S. Industrial scrap is leftover metal from manufacturing operations performed on metal articles. As such, the second requirement is met. The copper scrap is exported to Spain where it is melted and cast into copper ingots. The ingots are then melted down in another furnace with copper cathodes and cast into ingots which are then ultimately made into wire rod or drawn into wire. The conversion of copper scrap into wire rod or wire 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, thus satisfying the third requirement. Finally, the copper wire rod or wire is returned to the U.S. for further processing by Cunext’s customers (cable manufacturers). The copper rod will be drawn into wire, bunched, heated and coated with plastic whereas the wire will undergo further heating, and be bunched and cabled. The cable is then subjected to an extrusion process and coated with plastic. This office finds that the work performed to the wire rod and wire is considered “further processed” and therefore the fourth requirement is met. Accordingly, the subject merchandise may be entered under subheading 9802.00.6000, HTSUS, 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