In NY N302578, U.S. Customs and Border Protection (CBP) discussed the classification of selenium shot and selenium powder (CAS#7782-49-2) from China. The product consists of selenium steel which is manufactured and processed in the U.S. and China. The crude selenium or selenium-bearing raw material is sourced from various countries, including the U.S. In the U.S., the selenium is treated and then refined to a specified level of concentration prior to export to China. The selenium concentrate is then sent to a plant in China for further processing.
While at the plant in China, the selenium concentrate is converted to either selenium shot or powder. The process for making the selenium shot is to subject the concentrate to a melting process and then the material is molded to shot-shape. Powder is made through a process of crushing, milling, sieving and final processing. The shot or powder is then sent back to the U.S. where it is sold by the importer to unrelated customers for further processing and use in manufacturing.
CBP determined that the applicable subheading for “Selenium Shot and Selenium Powder, CAS # 7782-49-2” will be 2804.90.0000, HTSUS, which provides for Hydrogen, rare gases and other nonmetals: Selenium. The general rate of duty will be free.
The importer also inquired about the eligibility for a partial duty exemption under subheading 9802.00.60, HTSUS. Subheading 9802.00.60, HTSUS, provides a partial duty exemption for: “[a]ny article of metal . . . manufactured in the United States or subject 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 for the United States for further processing.”
U.S. Note 3(e) to Chapter 98, HTSUS, provides in pertinent part, “For purposes of subheading 9802.00.60, the term “metal” covers…(2) arsenic, barium, boron, calcium, mercury, selenium, silicon, strontium, tellurium, thorium, uranium and the rare-earth elements.” Therefore, CBP determined that the selenium concentrate exported from the United States, qualifies as “article[s] of metal” under subheading 9802.00.60, HTSUS. Furthermore, the imported “Selenium Shot and Selenium Powder, CAS # 7782-49-2” manufactured in China from selenium concentrate exported from the United States and further processed in the United States after importation, is be eligible for a partial duty exemption under subheading 9802.00.60, HTSUS, when it is imported into the United States.
Products of China classified under subheadings 2804.90.0000 HTSUS, unless specifically excluded, were also subject to additional Section 301 duties of 10 percent ad valorem.