[Federal Register Volume 74, Number 112 (Friday, June 12, 2009)]
[Notices]
[Pages 28054-28055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-13938]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Domestic Interested Party Petitioner's Contesting of 
Classification Determination

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Notice of petitioner's desire to contest classification 
determination.

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SUMMARY: On August 4, 2006, a domestic manufacturer of glass preforms 
for optical fibers (``optical glass preforms'') filed a domestic 
interested party petition in accordance with the procedures of section 
516 of the Tariff Act of 1930, as amended, and 19 CFR Part 175 
regarding the tariff classification of imported optical glass preforms. 
The petition challenged CBP's classification of optical glass preforms 
under subheading 7002.20.10, Harmonized Tariff Schedule of the United 
States (HTSUS), and requested CBP to reclassify all optical glass 
preforms under subheading 7020.00.60, HTSUS, as other articles of 
glass, or, alternatively, under 9001.10.00, HTSUS, as unfinished 
optical fibers. On July 14, 2008, Customs and Border Protection (CBP) 
denied the petition and affirmed its decision that optical glass 
preforms are classified in subheading 7002.20.10, HTSUS, as glass rods 
of fused quartz or other fused silica, unworked. In accordance with 19 
CFR 175.23 and 175.24, CBP is providing notice of its classification 
decision and is also giving notice of the receipt of petitioner's 
desire to contest this decision in court.

DATES: June 12, 2009.

FOR FURTHER INFORMATION CONTACT: Allyson R. Mattanah, Tariff 
Classification and Marking Branch, Regulations and Rulings, Office of 
International Trade, (202) 325-0029.

SUPPLEMENTARY INFORMATION: 

Background

    This document concerns the classification of imported optical glass 
preforms by Customs and Border Protection (CBP) and the desire of a 
domestic interested party to contest CBP's classification decision.

Classification of Optical Glass Preforms

    Classification under the Harmonized Tariff Schedule of the United 
States (HTSUS) is made in accordance with the General Rules of 
Interpretation (GRIs). GRI 1 provides that classification shall be 
determined according to the terms of the headings and any relative 
section or chapter notes. Merchandise that cannot be classified in 
accordance with GRI 1 is to be classified in accordance with subsequent 
GRIs taken in order. The Explanatory Notes to the Harmonized Commodity 
Description and Coding System, which represent the official 
interpretation of the tariff at the international level, facilitate 
classification under the HTSUS by offering guidance in understanding 
the scope of the headings and GRIs.
    Optical fibers (also known as fiber optics) are long, thin strands 
of pure glass about the diameter of a human hair. They are arranged in 
bundles called optical cables and used to transmit light signals over 
long

[[Page 28055]]

distances. The light travels through the core by constantly bouncing 
from mirror-lined walls, known as the cladding. Because the cladding 
does not absorb any light from the core, the light wave can travel 
great distances.
    Upon importation, glass preforms for optical fibers (``optical 
glass preforms'') consist of glass rods of various sizes and dimensions 
from which glass optical fiber is fabricated. They are produced by a 
two-step process. In the first step, called Vapor Axial Deposition, 
extremely fine dusts of silica tetrachloride fuse into a rod when drawn 
through an annealing furnace, creating the core layer of the optical 
glass preform. In the second step, the cladding layer is added by 
fusing a layer of silica dioxide powder to the outside of the core rod. 
The result is that the core and cladding of the optical glass preform 
is made of visibly different layers of glass because of their different 
refractive indexes.
    Heading 7002, HTSUS, provides for ``Glass in balls (other than 
microspheres of heading 7018), rods or tubes, unworked''. This is an eo 
nomine provision that covers unworked glass rods. Subheading 
7002.20.10, HTSUS, provides for ``Rods: of fused quartz or other fused 
silica''. The 2009 column one, general rate of duty for this provision 
is free.
    Heading 7020, HTSUS, provides for ``Other articles of glass'' and 
subheading 7020.00.60, HTSUS, provides for ``Other''. This is a basket 
provision that provides for articles of glass not otherwise covered in 
Chapter 70 of the HTSUS. The 2009 column one, general rate of duty 
under this provision is 5 percent ad valorem.
    Heading 9001, HTSUS, provides for ``Optical fibers and optical 
fiber bundles; optical fiber cables other than those of heading 8544; 
sheets and plates of polarizing material; lenses (including contact 
lenses), prisms, mirrors and other optical elements, of any material, 
unmounted, other than such elements of glass not optically worked''. 
Subheading 9001.10.00, HTSUS, provides for ``Optical fibers, optical 
fiber bundles and cables, and other''. The 2009 column one, general 
rate of duty for this provision is 6.7 percent ad valorem.
    On April 21, 2006, CBP issued Headquarters Ruling (HQ) 967058 to 
Lucent Technologies regarding optical glass preforms. In this ruling, 
CBP concluded that the proper classification is under subheading 
7002.20.10, HTSUS. CBP found that because the manufacture of optical 
glass preforms is a process that requires multiple steps, the articles 
are not complete until the desired layers are created and form a pure, 
solid whole. Therefore, the ``working'' of glass articles occurs after 
their creation.

Filing of Domestic Interested Party Petition

    On August 4th, 2006, Corning, a manufacturer of optical glass 
preforms in the U.S., filed a domestic interested party petition, in 
accordance with section 516, Tariff Act of 1930, as amended (19 U.S.C. 
1516), requesting that CBP reclassify imported optical glass preforms 
in either of subheadings 7020.00.60 or 9001.10.00, HTSUS. Corning's 
challenge of CBP's classification of these optical glass preforms 
turned on the issue of whether the different glass refractions evidence 
the existence of a glass core rod which has been ``worked'' by the 
addition to it of a layer of cladding glass.
    On March 28, 2007, in accordance with 19 CFR 175.21, CBP published 
a Notice of Receipt of Domestic Interested Party Petition filed by 
petitioner Corning in the Federal Register (72 FR 14603). The notice 
invited written comments on the petition from interested parties until 
May 27, 2007. Two comments were received in response to this notice, 
both of which concurred with CBP's position that the optical glass 
preforms described in HQ 967058 are classified in subheading 
7002.20.10, HTSUS.

Decision on Petition and Notice of Petitioner's Desire To Contest

    On July 14, 2008, CBP issued HQ W968361, denying Corning's Domestic 
Interested Party Petition and satisfying the requirements of 19 CFR 
175.22(b) by providing the petitioner with notification that the 
classification of the imported optical glass preforms was found to be 
correct. CBP classified the optical glass preforms based on its finding 
that these goods are solid multi-layered rods made from fused silica 
that are unworked in their condition as imported. This letter 
officially notified the petitioner that ``CBP correctly classified the 
glass preform described in HQ 967058, by application of GRI 1, under 
heading 7002, HTSUS, and specifically under subheading 7002.20.1000, as 
glass rods, unworked, of fused quartz or other fused silica.''
    On August 6, 2008, Corning timely provided CBP with notice of its 
desire to contest HQ W968361 in the United States Court of 
International Trade and its desire to contest the liquidation of 
entries of optical glass preforms at the Port of Charlotte, North 
Carolina in accordance with 19 U.S.C. 1516(c) and 19 CFR 175.23.
    As required by both the applicable statute and regulations, CBP is 
in receipt of Corning's letter, dated August 6, 2008, establishing the 
timely notice of its desire to contest in the Court of International 
Trade CBP's decision letter of HQ W968361 which held that the 
classification of imported optical glass preforms is under subheading 
7002.20.10, HTSUS, as glass rods, unworked, of fused quartz or other 
fused silica.

    Authority: This notice is published in accordance with 19 U.S.C. 
1516 and sections 175.23 and 175.24 of the CBP Regulations (19 CFR 
175.23-24).

    Dated: June 9, 2009.
Jayson P. Ahern,
Acting Commissioner, Customs and Border Protection.
[FR Doc. E9-13938 Filed 6-11-09; 8:45 am]
BILLING CODE 9111-14-P