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NY N005667




February 21, 2007

CLA-2-82:RR:NC:1:104

CATEGORY: CLASSIFICATION

TARIFF NO.: 8209.00.0030

Mr. David M. Fabry
Horn USA, Inc.
320 Premier Court, Suite 205
Franklin, TN 37067

RE: The tariff classification of tungsten carbide inserts and blanks from Germany

Dear Mr. Fabry:

In your letter dated January 11, 2007 you requested a tariff classification ruling.

The items in question are unmounted tungsten carbide inserts for use in metalworking machine tools such as lathes and milling machines. In addition, you indicate that you are also interested in obtaining the classification for the unfinished blanks used to produce the inserts. Representative catalog pages were submitted for review, i.e., page A36/Part Number R105.0100.3.6TN35 (to be used on a lathe) and page A47/Part Number 313.0250.00TN35 (to be used on a machining center). You state that, in general, your facility receives the cutting portion of the tool rather than the shank portion. The unmounted insert must be affixed to a tool holder in order to perform its function. The method of affixation is by a screw mount. Both the inserts and the blanks are made of carbide grade MG12.

The blanks are imported in an “un-ground” condition. Blanks are produced in different versions, e.g., R/L designations (right- and left-handed). A different blank is used to produce the proper-handed tools. Blanks are also imported in corresponding length of the tools, i.e., a 25.5 long blank will result in a 25mm long tool after grinding. Individual blanks can be used to produce a variety of tools within the same product family. Blanks can be used to produce tools for operations such as grooving, turning and milling as well as boring and threading. In general, a finished insert undergoes a variety of processing steps such as mixing of the carbide powder and binder, pressing, green-state machining, sintering, grinding and coating. The item is considered a blank prior to the grinding operation. You indicate that the grinding and coating operations will be performed post-importation at your Franklin, TN manufacturing facility. Blanks are pre-drilled prior to importation for affixation purposes.

The Explanatory Notes to GRI 2(a)/Incomplete or unfinished articles (“ENs”) provide guidance on the application of the rule to “blanks”. Said ENs state, in part, (II) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term “blank” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part (e.g., bottle performs of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape).

Semi-manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as “blanks”.

It is this office’s opinion that the blanks, in their imported condition, qualify as “blanks” for tariff purposes. The blanks meet the two criteria for articles which are “blanks” for GRI 2(a) purposes, i.e., (1) have approximate shape or outline and (2) sole use for completion into a finished insert. Each has the character of a finished insert. As imported, these articles are not merely shapes that may be used to make a variety of articles. Although the blanks may not be to final tolerances and lack the finished surfaces of the finished inserts, they are recognizable as the finished articles they will become. As you indicate in your letter, the blanks undergo green-state machining prior to importation into the United States if non-molded features are required. In addition, there is no evidence to suggest that the blanks have any practical use other than for completion into finished inserts.

In your original letter dated August 18, 2006, you indicated that your parent company in Germany had been advised to enter the merchandise under subheading 8208.10, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Knives and cutting blades, for machines or for mechanical appliances, and base metal parts thereof: For metal working and parts thereof. Not all items described as “blades” or “knives” are classifiable as such for tariff purposes. We classify articles designed as the cutting part of routers, shapers or similar machine tools or hand tools, if a cermet and not already mounted on tools, as plates, sticks, tips and the like rather than as knives and blades. This is because these items do not fall within the common meaning of knife or blade (a device used to cut by slicing, shearing or chopping.) The items in question are used to shape a workpiece, thus, subheading 8208.10, HTSUS, would not be applicable.

The applicable subheading for the sintered tungsten carbide inserts for use in metalworking machine tools such as lathes and milling machines and blanks for the manufacture of said inserts will be 8209.00.0030, HTSUS, which provides for Plates, sticks, tips and the like for tools, unmounted, of cermets Of sintered metal carbides. The rate of duty will be 4.6 percent 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 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 Patricia O’Donnell at 646-733-3011.

Sincerely,

Robert B. Swierupski
Director,

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