January 22, 2009 CBP Bulletin Notice on Classification of Catalytic Converter Ceramic Substrates

Proposed revocation of rulings; proposed revocation of treatment. CBP is proposing to revoke two rulings on the classification of catalytic converter ceramic substrates. 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 February 23, 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.

Catalytic converter ceramic substrates. The merchandise at issue in NY N013892 is identified as a Diesel Particulate Filter. The DPF is a catalytic converter ceramic substrate. The DPF is part of an exhaust system used to reduce diesel exhaust emissions through a filtering process. Upon importation, the DPF does not contain a catalyst coating. The DPF filters diesel particles through a series of ceramic honeycomb channels. The hardness of the DPF on the Mohs scale is nine.

The merchandise at issue in HQ 954365 is described as catalytic converter ceramic substrates. The substrate is a specially designed honeycombed body made of ceramic cordierite. After importation into the U.S., it is then coated with a catalytic agent, bracketed in place in a metal converter housing, and inserted in a motor vehicle exhaust system. The substrate, contained within a catalytic converter, is suitable for use solely with a motor vehicle for exhaust gas purification in order to convert carbon monoxide, hydrocarbons, and nitrogen oxide into non-toxic substances.

CBP is proposing to issue HQ H015618 and HQ H017942, in order to revoke NY N013892 and HQ 954365, respectively, and determine that if the item has a hardness equivalent to 9 or more on the Mohs scale, it should be classified under HTS 6909.12.0000 as "Ceramic wares for technical uses having a hardness equivalent to 9 or more on the Mohs scale," and if it does not have a hardness equivalent to 9 or more on the Mohs scale it should be classified under HTS 6909.11.20 as "ceramic wares for technical uses machinery parts," rather than under HTS 6909.19.5095 as "Ceramic wares for technical uses Other, Other, Other" or HTS 8708.99 as "other parts of motor vehicles."

In the first instance, CBP proposes this change as a correction based on new product information, specifically that the item has a hardness equivalent to 9 or more on the Mohs scale. In the second instance, CBP proposes this change as a correction largely based on the ENs to Section XVII, additional U.S. Rules of Interpretation, and the ENs to heading 6909.

Additional U.S. Rule of Interpretation 1(c) provides that: "A provision for parts of an article covers products solely or principally used as a part of such articles, but a provision for ''parts'' or ''parts and accessories'' shall not prevail over a specific provision for such part or accessory." In addition, the EN to heading 6909 states that the heading covers ceramic wares for technical uses.

According to CBP, the ceramic substrates are suitable for use solely or principally with the motor vehicles of chapter 87, however, at importation, the substrates are clearly identifiable as ceramic articles. CBP proposes that it logically follows that a provision which names a good, (heading 6909) must prevail over a heading that provides for parts, but which does not identify any particular article.

CBP now proposes that, by application of GRI 1, the catalytic converter ceramic substrates should be classified in 6909.11.20, HTSUS, which provides for ''Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods: Ceramic wares for laboratory, chemical or other technical uses: Of porcelain or china: Machinery parts'' if the ceramic substrate does not have a hardness equivalent to 9 or more on the Mohs scale.

If the ceramic substrate has a hardness equivalent to 9 or more on the Mohs scale, the applicable subheading should be HTS 6909.12.00 which provides for ''Ceramic wares for laboratory, chemical or other technical uses; ceramic troughs, tubs and similar receptacles of a kind used in agriculture; ceramic pots, jars and similar articles of a kind used for the conveyance or packing of goods: Ceramic wares for laboratory, chemical or other technical uses: Articles having a hardness equivalent to 9 or more on the Mohs scale."

Proposed: 6909.11.20, duty-free or 6909.12.00, 4%; Current: 6909.19.5095, 4% and 8708.99.81, 2.5% (formerly 8708.99.50)

January 22, 2009 CBP Bulletin (Vol. 43, No. 5) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/