HQ 081606: Tariff classification of nickel plated perforated steel steel strip

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                       HQ 081606

                                    August 10, 1988


            CLA-2 CO:R:C:G   081606 JAS

            CATEGORY:   Classification

            TARIFF NO.: 7326.90.90

            Mr. Kent Johnston
            Nissho Iwai American Corporation
            Five Post Oak Park, Suite 2670
            Houston, Texas 77027

            RE:  Tariff classification of nickel plated perforated steel
                 steel strip

            Dear Mr. Johnston:

                In your letter of October 19, 1987, you inquire as to the
            tariff classification of certain nickel plated perforated steel
            strip from Japan.  The strip will be further processed after
            importation and used as positive and negative grids in re-
            chargeable nickel cadmium batteries.

            FACTS:

                The merchandise is cold rolled steel strip, half hard and
            full hard, 0.08mm x 300mm and 0.10mm x 300mm, in coils, which
            has been fed through a press where punch and die groups per-
            forate the strip over its entire surface with numerous tiny
            holes.  The strip is then nickel plated, 3 microns minimum on
            each side, and rewound on coils.  This is its condition as
            imported.

                After importation, the coils are unreeled and the perfor-
            ated strip is subjected to electrochemical processes to deposit
            active nickel and cadmium oxides.  The strip is then cut into
            2-inch lengths, connecting tabs are welded to them, and the
            resulting unit placed in a battery can.  The can is then
            charged with electricity.

            ISSUE:

                Whether the coiled strip is classifiable as part of a
            battery, in item 683.15, Tariff Schedules of the United States
            (TSUS), or according to component material in chief value.















                                         - 2 -

            LAW AND ANALYSIS:

                Perforation of strip prior to importation is a process
            which advances the strip beyond the status of a basic shape or
            form of iron or steel.  See headnote 1, part 2, schedule 6,
            TSUS.  Although a material is precluded from classification in
            part 2 of schedule 6, it is not necessarily classifiable as a
            part of an article.  Court cases on the classification of steel
            strip imported in material lengths indicate that to be clas-
            sifiable other than as a material the character and identity of
            individual articles must be fixed with certainty at time of
            importation.  The merchandise must be commercially and practi-
            cally dedicated to only one use, with no additional post-
            importation processing required except cutting to length.

                The post-importation electrochemical processing represents
            a significant step in the manufacture of the article and is
            believed critical to establishing the character and identity of
            the merchandise.  The processing after importation is not a
            mere cutting to length, such as was considered by the court in
            Heraeus-Amersil v. United States, Slip Op. 86-41 (Ct. Int'l
            Trade, decided April 18, 1986).  In that case, continuous
            lengths of metal contact tape were merely cut to length after
            first being welded to contact springs.  The court held that the
            metal tape was classifiable as parts of electrical relays,
            rather than as a material (wire).  The imported perforated
            strip in this case is distinguishable because it is processed
            beyond mere cutting to length.  Therefore, the perforated strip
            is not classifiable as parts of batteries.

            HOLDING:

                The nickel coated perforated steel strip in coils is clas-
            sifiable under the provision for other articles of iron or
            steel, not coated or plated with precious metal, in item
            657.2580, TSUSA, dutiable at the rate of 5.7 percent ad
            valorem.

                The proposed Harmonized Tariff Schedule of the United
            States Annotated (HTSUSA), is scheduled to replace the TSUS as
            the tariff code of the United States.  The HTSUSA subheading
            applicable to this merchandise is 7326.90.90, other articles of
            iron or steel, other.  However, if there are changes in the
            HTSUSA before its enactment, this advice may not continue to
            apply.

                                        Sincerely,



                                        John Durant, Director
                                        Commercial Rulings Division





            6cc:  Area Director, New York Seaport (NIS 112 & 117)
            1cc:  District Director, Houston Texas
            1cc:  Fraud Center
            1cc:  John Durant
            JASeal:jaj:7/26/88