NY N010243 - Country of origin of Chinese activated carbon further processed in Mongolia. - United States International Trade Commision Rulings

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NY N010243

May 25, 2007

CLA-2-38:RR:E:NC:N2:237

CATEGORY: MARKING

Mr. Rodger Lu
Jurassic Activated Carbon, Inc.
161 Kingslake Road
North York, Ontario
Canada M2J 3G4

RE: Country of origin of Chinese activated carbon further processed in Mongolia.

Dear Mr. Lu:

In your letter dated April 24, 2007 you requested a country of origin ruling.

The imported product is described as coal carbonized and activated by steam in China and further processed in Mongolia by sieving, washing, drying, milling, testing and packaging.

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C.1304. Section 134.1(b), Customs Regulations (19 CFR 134.1 (b)), defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within the meaning of this part. A substantial transformation occurs "when an article emerges from a process with a new name, character, or use different from that possessed by the article prior to processing." See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F.2d 778 (1982) (cited with approval in Torrington Co. v. United States, 764 F. 2d 1563, 1568 (1985)).

In this case, the issue for consideration is whether sieving, washing, drying, milling, testing and packaging of activated carbon in another country effects a substantial transformation. In determining whether the further processing done in Mongolia constitutes a substantial transformation, the issue is whether the activated carbon emerges from sieving, washing, drying, milling, testing and packaging treatment with a new name, character, or use which differs from the original material subjected to the process.

The activation of carbon is described as the process of treating carbon to open an enormous number of pores. In the activated state, carbon adsorbs gases, liquids, and solids. Activation of carbon in the form of charcoal is accomplished by feeding steam into a kiln maintained at about 1000 C (thermal activation). Activation of carbon in the form of cellulosic material is accomplished by feeding the chemically impregnated material into the kiln (chemical activation). This tends to remove the adsorbed hydrocarbons from the surface and leaves a porous structure. The surface area of activated carbon produced is about 1000 square meters per gram. Variables such as pore size and surface area are controlled by the kiln temperature and residence time in the kiln. The adsorbing property of charcoal is related to the large surface area present.

Explanatory Note 38.02(A), HTSUS, covers carbon and mineral substances said to be activated when their superficial structure has been modified by appropriate treatment (with heat, chemicals, etc.) in order to make them suitable for certain purposes, such as decolourising, gas or moisture adsorption, catalysis, ion-exchange or filtering. Explanatory Note 38.02(A)(II)(a), HTSUS, covers activated carbon usually obtained by treating vegetable, mineral or other carbon (wood charcoal, coconut shell carbon, peat, lignite, coal, anthracite, etc.) at a high temperature in the presence of steam, carbon dioxide or other gases (thermal activation), or by dry calcinations of cellulosic materials impregnated with solutions of certain chemicals (chemical activation).

In general, after activation, steam activated and chemically activated carbons can be further treated depending on the application for which they will be used. Acid washing is often used for certain activated carbons that have a high ash content. Chemically activated carbons may also retain some of the activating agent (usually phosphoric acid or zinc chloride) that could leach out during processing and make them unacceptable for certain applications such as aquarium filters or pharmaceutical purification. Washing the activated carbon with hydrochloric or other acids removes minerals and ash resulting in a higher purity product. Acid washed, activated carbons are often used in applications where process streams are acidic, such as purification of corn syrup. For some specialty applications, the activated carbon may be impregnated with metals or other chemicals. This impregnation would give the activated carbon the ability to adsorb a particular impurity or catalyze a desired reaction.

However, your description indicates that the sieving, washing, drying, milling, testing and packaging are merely incidental to sorting, packing and quality control. The activated charcoal from China is not substantially transformed into an article with a new name, character, or use different from that possessed by the article prior to processing in Mongolia. Therefore, the country of origin of the further processed Chinese activated carbon is still China.

This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, or by visiting their website at www.epa.gov.

Certain activated carbon from the People's Republic of China may be subject to anti-dumping duties administered by the U.S. Department of Commerce, Import Administration. You may contact Catherine Bertrand, AD/CVD Operations, Office 9, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone number : (202) 482- 3207; or by visiting their website at www.IA.ITA.DOC.GOV.

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. For any questions regarding the ruling, contact National Import Specialist Frank Cantone at (646) 733-3038.

Sincerely,

Robert B. Swierupski
Director,

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