HQ 554901: Applicability of partial duty exemption under HTSUS subhead- ing 9802.00.60 to ferromolybdenum to be imported from Europe.067757;067419;055336;

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 554901

                        January 26, 1989

CLA-2 CO:R:C:V 554901 GRV

CATEGORY:  Classification

TARIFF NO.:  9802.00.60

Susan L. Connor
Supervisor - Traffic Services
AMAX Inc.
AMAX Center
Greenwich, Connecticut  06836-1700

RE:  Applicability of partial duty exemption under HTSUS subhead-
     ing 9802.00.60 to ferromolybdenum to be imported from
     Europe.067757;067419;055336;

Dear Ms. Connor:

     This is in response to your letter of October 27, 1987,
requesting, inter alia, a ruling on the applicability of subhead-
ing 9802.00.60, Harmonized Tariff Schedule of the United States
(HTSUS), to ferromolybdenum to be imported from Europe.  Other
issues raised in your letter were addressed in Headquarters
Ruling Letter 219899 (February 3, 1988).

FACTS:

     You state that AMAX, Inc., intends to ship molybdenum ores
and/or molybdic oxides of U.S. origin to its two conversion
plants in Europe.  There, the plants would convert the ores or
oxides into ferromolybdenum, which would then be returned to the
U.S. for further processing.

ISSUE:

     Whether the products to be exported constitute articles of
metal, so as to be eligible for the partial duty exemption pro-
vided for under HTSUS subheading 9802.00.60 (item 806.30, Tariff
Schedules of the United States (TSUS)) when returned to the U.S.

LAW AND ANALYSIS:

     Effective January 1, 1989, the Harmonized Tariff Schedule of
the United States (HTSUS) will supersede and replace the Tariff
Schedules of the United States (TSUS).  TSUS Item 806.30 will be
carried over into the HTSUS without change as subheading
9802.00.60.  This tariff provision provides a partial duty exemp-
tion for:
     [a]ny article of metal...manufactured in the United
     States or subjected to a process of manufacture in the
     United States, if exported for further processing, and
     if the exported article as processed outside the
     United States, or the article which results from the
     processing outside the United States, is returned to
     the United States for further processing.  (Emphasis
     supplied).

Thus, articles of metal satisfying these statutory requirements
may be classified under HTSUS subheading 9802.00.60 with duty
only on the value of such processing done outside the U.S., upon
compliance with section 10.9, Customs Regulations (19 CFR 10.9).

     In Headquarters Ruling Letter (HRL) 067757 (June 25, 1982),
dry alumina extrudate (an oxide) was exported and we held that in
this chemical oxide form it would not be considered an article of
metal within the meaning of TSUS item 806.30.  In HRL 067419
(November 4, 1981), oxide materials containing molybdenum were
similarly deemed to be chemical compounds of metal and not
articles of metal, thereby rendering the materials ineligible
for TSUS item 806.30.  Lastly, in HRL 055336 (November 7, 1978),
we held that a rare earth fluorocarbonate was not a metal
article for purposes of TSUS item 806.30 and stated that "unless
the product involved is chiefly in a metallic form, the ordinary
ores, minerals, concentrates, residues, oxides, and dross or
slag obtained from processing a metal, are more likely to be a
combination of chemical elements such as oxides, sulfates, salts,
and similarly combined forms."  Accordingly, we stated that where
the component material of chief value is a chemical compound
containing combined metal, the product is not considered to be an
article of metal within the meaning of TSUS item 806.30 (now
denominated as HTSUS subheading 9802.00.60.

     In the present case, we are of the opinion that neither the
molybdenum-containing ores nor the molybdic oxides constitute an
article of metal for tariff purposes.  Molybdenum ores in primary
form are earthy, mineral-type materials bearing none of the
characteristics of the molybdenum or ferromolybdenum metal.
Molybdic oxides are gray, powdery, non-metallic compounds derived
from molybdenum ore or the oxidation of molybdenum metal.
Although the oxide may be reduced to the metal, it is used most
frequently in oxide form as a dry lubricant.  Therefore,
consistent with the above-referenced ruling letters, these
products are not eligible for the partial duty exemption when
returned to the U.S., as they do not qualify as articles of metal
for purposes of HTSUS subheading 9802.00.60.
HOLDING:

     On the basis of the information provided, the molybdenum
ores and molybdic oxides to be exported do not constitute
articles of metal within the meaning of HTSUS subheading
9802.00.60 and, therefore, the ferromolybdenum to be imported
will not be eligible for the partial duty exemption provided
thereunder when returned to the U.S.

                                   Sincerely,






                                   John Durant, Director
                                   Commercial Rulings Division