HQ 555282: Classification of titanium anode made of foreign metal cut to size and coated with ruthenium in the U.S., and then assembled in an electrolyzer in Japan.

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 555282

                                     April 10, 1989

            CLA-2-CO:R:C  555282 RA

            CATEGORY: Classification

            TARIFF NO.: 9802.00.80, HTSUS

            Mr. Kenneth G. Weigel, Esq.
            Morgan, Lewis & Bockius
            Counsellors at Law
            1800 M Street, N.W.
            Washington, D.C. 20036

            RE: Classification of titanium anode made of foreign metal cut
                to size and coated with ruthenium in the U.S., and then
                assembled in an electrolyzer in Japan.

            Dear Sir:

                 This is in response to your letter of January 30, 1989, in
            which you requested a ruling on the classification of an anode
            made from foreign metal mesh which is cut to proper size and
            coated with ruthenium in this country and later assembled into
            an electrolyzer in Japan.

            FACTS:

                 Titanium mesh made in Japan is cut to specific size and
            coated with ruthenium in the U.S. to produce a finished anode.
            The anode is then sent to Japan to be assembled into an
            electrolyzer by welding which is then imported into the U.S.

            ISSUE:

                 Can an allowance in duty under the provisions of subheading
            9802.00.80, HTSUS, be made for the value of the anode assembled
            in an electrolyzer, which is imported from Japan in a completed
            condition, because the cutting to size and coating transformed
            the foreign-made titanium mesh into a new and different article
            of U.S. origin?

            LAW AND ANALYSIS:

                 Subheading 9802.00.80, HTSUS, provides for a partial exemp-
            tion from duty for articles assembled abroad in whole or in part
            of fabricated components of U.S. origin which have been exported
            ready to be assembled without loss of identity or improved in
            condition or advanced in value except by assembly or operations
            incidental thereto.  The exported anode is a fabricated











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            component and it is attached to the electrolyzer without change
            by a spot welding process which is a qualified assembly
            operation.  The sole issue is whether the anode when exported
            was a product of the U.S.  The titanium mesh of Japanese origin
            was cut to shape to fit the electrolyzer and coated with
            ruthenium by an expensive process.  These operations transform
            the foreign-made mesh into a new and different article which can
            be used only as an anode in an electrolyzer.  The coating
            process accounts for about 88 percent of the anode's value.

                 The processing of the titanium mesh into a completed anode
            not only changed the name of the product but also made a
            significant change in both use and character so the mesh and
            anode cannot be viewed as merely different stages of the same
            product.  See Superior Wire v. U.S., Appeal No. 88-1020 (Fed.
            Cir., 1989).

            HOLDING:

                 We are of the opinion that the processing of the imported
            titanium mesh by cutting to specific size and coating with metal
            in a complex operation is sufficient to transform the mesh into
            an anode of U.S. origin.  As such, the exported anode will meet
            the requirement of domestic origin and be eligible for tariff
            treatment under subheading 9802.00.80, HTSUS, upon compliance
            with sections 10.11 to 10.24, Customs Regulations (19 CFR 10.11
            to 10.24).

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division