HQ 0222235 - Internal Advice Request; Substitution of Titanium Solids, Chips and Turnings for Titanium Sponge; Stoichiometric substitution; T.D. 82-36 - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1993 HQ Rulings > HQ 0221393 - HQ 0222782 > HQ 0222235

HQ 222235

May 17, 1990

DRA-1-09 CO:R:C:E 222235 C

CATEGORY: DRAWBACK

Deputy Assistant Regional Commissioner
Regulatory Audit Division
U.S. Customs Service
Pacific Region

RE: Internal Advice Request; Substitution of Titanium Solids, Chips and Turnings for Titanium Sponge; Stoichiometric substitution; T.D. 82-36

Dear Sir:

This responds to your February 1, 1988, request for internal advice concerning the referenced subject (DRA-2-O:R NT; February 1, 1988). The issue you raised was the following: Are titanium alloy solids, chips and turnings the same kind and quality as titanium sponge, such that substitution of the former for the latter under T.D. 82-36 is permissible for drawback, when the sought after substance in the solids, chips and turnings is not only the titanium but also the alloying component (or components)?

Customs has permitted the substitution of an alloy scrap for an imported pure metal in a melt procedure, under T.D. 82-36, when the scrap contains a quantity of the pure metal and it is this component of the scrap that is sought after for the production. Although the alloy scrap, such as titanium alloy scrap, is not strictly the same kind and quality as the imported pure metal, such as titanium sponge, the metal in the scrap is the same as the imported metal, and to that extent, there is same kind and quality. This construction necessarily disregards the alloying component of the scrap which is not required for the production process.

On the facts presented here, we understand that the scrap (the solids, chips and turnings) is chosen and substituted not only for its titanium content but also for its alloying component(s). For example, if the desired finished product is to be composed of titanium, vanadium and tin, the scrap chosen for use in the production procedure will contain these alloying components: vanadium and tin. Consequently, what results is the substitution of an alloy scrap (the solids, chips and turnings) - that is, titanium plus other components - for the imported pure metal, and the construction that permits same kind and quality under T.D. 82-36 breaks down. The inevitable conclusion is that an alloy scrap, sought to be substituted for both its primary metal and its alloying component(s), is not the same kind and quality as the imported pure metal.

Attached, please find a copy of a memorandum of advisement from the Technical Branch, Office of Laboratories and Scientific Services. We are in agreement with the view expressed therein, and we recommend that the foregoing interpretation of T.D. 82-36 be applied in determining the applicability of drawback in this case.

Sincerely,

Marvin Amernick

Previous Ruling Next Ruling