HQ 955158: Neodymium-Iron Alloy from China

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 955158

                               November 10, 1993

CLA-2 CO:R:C:F  955158  ALS

CATEGORY:  Classification

TARIFF NO.:  3823.90.5050

Mr. Alan Chalup
Cometals, Inc.
One Penn Plaza
New York, NY 10119

RE:  Neodymium-Iron Alloy from China

Dear Mr. Chalup:

      This is reference to your request of August 20, 1993, for a binding ruling
on the classification of the subject product.

FACTS:

      The product is an alloy composed of 85 percent Neodymium (CAS 7440-00-8)
and 15 percent iron (CAS 7439-89-6).  According to the inquirer the product is
not commonly used in the manufacture of other alloys.  It will be used to make
permanent magnets.

ISSUE:

      What is the classification of the subject product?

LAW AND ANALYSIS:

      Classification of merchandise under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) is governed by the General Rules of
Interpretation (GRI's) taken in order.  
GRI 1 provides that the classification is determined first in accordance with
the terms of the headings and any relative section and chapter notes.  If GRI
1 fails to classify the goods        - 2 -

and if the heading and legal notes do not otherwise require, the remaining GRI's
are applied, taken in order.

      In considering the classification of the product we note that it is not
commonly used in the manufacture of alloys.  It, therefore, cannot be classified
as a ferroalloy.  The inquirer indicated that the product is used in the
production of permanent magnets.  

      The product is apparently a mixture of two elements, a rare earth with a
base metal and is classifiable in heading 3823, HTSUSA.

HOLDING:

      An alloy of 85 percent neodymium and 15 percent iron is classifiable in
subheading 3823.90.5050, HTSUSA, and is subject to a general rate of duty of 5
percent ad valorem.

                                    Sincerely,



                                    John Durant, Director
                                    Commercial Rulings Division