May 29, 2009 CBP Bulletin Notice on Classification of Everest T and G Blanks

Proposed modification of rulings; proposed revocation of treatment. CBP is proposing to modify two rulings on the classification of Everest T and G Blanks. 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 modifications and revocation, or any party involved with a substantially identical transaction, should advise CBP by June 29, 2009, the date that written comments on the proposed ruling 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.

Everest T and G Blanks. The merchandise consists of titanium cylinders and glass ceramic cylinders of varying sizes. The titanium cylinders are marked and/or engraved with the letter "T" and numbers relating to the size. The box containing the cylinders is labeled Everest T-Blank. Boxes of larger titanium blocks and flat round material are also labeled "blanks." The cylinders at issue here are created in the following sizes of diameter in millimeters: 10 x 12, 12 x 16, 16 x 13, and 16 x 16. The glass ceramic cylinders appear similar in size and shape and are marked with a "G". Leucite glass ceramic is made through a process of devitrification of leucite into glass. The T and G blanks are part of the Everest system for creating crowns, bridges and artificial teeth. The system utilizes CAD/CAM technology to create the finished product. First a model is made of the patient's tooth. Then the blank is embedded into a positioning appliance. The model is scanned and the computer technology allows the titanium or glass ceramic cylinder to be milled to shape. In some cases, the milled piece is then sintered, a process of applying heat to create the final shape and hardness of the artifice. Lastly, coatings or stains may be added to mimic the appearance of an actual tooth.

CBP is proposing to issue HQ H021885 in order to modify NY J89431 and K81158 and reclassify the T and G blanks according to their material composition in HTS Chapters 70 and 81 rather than as "artificial teeth" in HTS heading 9021.

CBP proposes this change as a correction based on GRI 2(a) and the Explanatory Notes (ENs) to GRI 2(a) which state the following:

RULE 2 (a) (Incomplete or unfinished articles)

(I) The first part of Rule 2 (a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article.

(II) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term "blank" means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part (e.g., bottle preforms of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape).

Semi-manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as "blanks."

At GRI 1, the titanium cylinders are described by heading 8108, as "articles of titanium." The cylinders are made of titanium and are fashioned into a discrete article. The glass-ceramic cylinders are formed by the divitrification of leucite into glass, but retain their character as articles of glass of heading 7020 explicitly included in the Chapter in the General ENs to Chapter 70.

The applicable text of heading 9021 is "artificial parts of the body." The cylindrical articles do not resemble any part of the body, nor do they appear to contain the essential character of any part of the body. Even when revealed that the cylinders become artificial teeth or other dental artifice, they are not immediately recognizable as such. They are not the approximate shape or outline of an artificial tooth, crown or bridge. Although small, they are considerably larger than teeth. Unlike teeth, they are perfectly cylindrical in shape with a flat bottom and top. They are not ready for direct use as an artificial tooth, crown, bridge or other dental artifice.

The ENs to GRI 2(a) exclude profile shapes such as bars and rods from classification as unfinished articles under GRI 2(a). The cylindrical blanks here are similar to the bars and rods of the example.

Furthermore, CBP cites numerous prior rulings regarding "blanks" (see bulletin for details) and these examples of previous rulings show that CBP has been consistent in requiring that a blank, for tariff purposes, has the approximate shape or outline of the finished article.

CBP now proposes that by application of GRI 1, the Everest T blanks are classified in subheading 8108.90.30, as "Titanium and articles thereof, including waste and scrap: Other: Articles of titanium" and the Everest G blanks are classified in subheading 7020.60.00 as "Other articles of glass: Other."

Proposed: 8108.90.30, 5.5% and 7020.00.60, 5%; current: 9021.21.8000, duty-free

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