February 5, 2009 CBP Bulletin Notice on Classification of Certain Hollow Billets of Aluminum and Certain Forged Titanium Billets

Proposed revocation of rulings; proposed revocation of treatment. CBP is proposing to revoke two rulings on the classification of certain hollow billets of aluminum and certain forged titanium billets. Additionally, CBP proposes that this notice covers any rulings on this merchandise that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.

CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by March 7, 2009, the date that written comments on the proposed rulings are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.

Certain aluminum and titanium billets. The merchandise at issue In NY N018044 is described as a non-alloyed cast aluminum pipe with an outside diameter ranging from 7 to 11 inches and an inside diameter ranging from 3 to 5 inches.

The merchandise at issue in HQ 966570 is described as forged titanium being imported in billet form and thereafter to be melted down for use in the manufacture of recreational equipment. The chemical analysis of the product is stated to be "90 percent titanium, 6 percent aluminum, and 4 percent vanadium, by weight."

CBP is proposing to issue HQ H021135 and HQ H027436 in order to revoke NY N018044 and HQ 966570 and determine that the billets are classified under HTS 7601.10.60 as "unwrought aluminum" and HTS 8108.20 as "unwrought titanium," rather than under HTS 7608.10.0030 as "Aluminum tubes and pipes: Of aluminum, not alloyed: Seamless," and HTS 8108.90.60 as "Titanium and articles thereof, including waste and scrap: Other: Other."

For the aluminum product, CBP proposes the change as a correction based on new information, in particular a video showing the manufacturing process.The video submitted demonstrates that molten aluminum is cast in a cylindrical mold with a solid core. The resultant castings are, therefore, hollow. After trimming the ends, the castings are cut into shorter lengths. According to the submission, the casting process for the merchandise, which is described as "hollow billets," is the same as billets and ingots. The only difference is the size of the mold and the fact that the molds are "tube shaped." After the product is pulled from the mold and cut to length it is not further processed. After importation, the product will be re-melted to make wheels. The reason hollow billets are made instead of full billets or ingots is because hollow billets save money and time during the re-melting process. The merchandise stated to be a "raw material."

CBP now proposes that the cast billet meets the terms of the definition of "unwrought" set forth in Additional U.S. Note 1, Section XV which states: "For the purposes of this section, the term "unwrought" refers to metal, whether or not refined, in the form of billets,and similar manufactured primary forms" In addition, technical definitions and dictionary definitions (see bulletin for details) support this position. Furthermore, the Explanatory Notes (ENs) to 7601 state: "This heading covers unwrought aluminum in billets similar forms These goods are generally intended for rolling, forging, drawing, extruding, hammering or for re-melting and for casting into shaped articles."

For the titanium product, CBP proposes the change as a correction based on Additional U.S. Note 1 to Section XV (quoted above) and legal precedent. In construing the provisions of this Note, the Court of International Trade has found that: "The definition of unwrought contained in Additional U.S. Note 2 [now Note 1] connotes a stage in a manufacturing process which eventually results in a different ultimate product. The Court concludes that the phrase "manufactured primary forms" refers to forms that have undergone some processing but must undergo further processing before they appear in an eventual final product." Technical and dictionary definitions (see bulletin for details) also support this interpretation. CBP now proposes that HTS 8108.20 provides for, without limitation, titanium that has not been worked into a finished condition.

CBP now proposes that by application GRI 1, the hollow billet of aluminum is classified under subheading 7601.10.60 which provides for: "Unwrought aluminum: Aluminum, not alloyed: Other"; and the titanium billets are classified under subheading 8108.20 which provides for: "Titanium and articles thereof, including waste and scrap: Unwrought titanium; powders."

Proposed: 7601.10.60, duty-free and 8108.20, 15% ; Current: 7608.10.0030, 5.7% and 8108.90.60, 5.5%

February 5, 2009 CBP Bulletin (Vol. 43, No. 7) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/