> **HQ** 964702
>
> NOVEMBER 26, 2001
>
> **CLA-2 RR:CR:GC** 964702 JAS
>
> **CATEGORY:** Classification
>
> **TARIFF NO.:** 8543.30.00
>
> Port Director of Customs
>
> 2350 N Sam Houston Pkwy E, Suite 1000

Houston, TX 77032

> **RE**: Protest 5301-00-100131; Magnesium Anodes for Cathodic
> Protection
>
> Dear Port Director:
>
> This is our decision on Protest 5301-00-100131, filed against your
> classification, under the Harmonized Tariff Schedule of the United
> States (HTSUS), of magnesium anodes for cathodic protection. The
> entries under protest were liquidated on March 2, March 23, and April
> 7, 2000, and this protest timely filed on May 11, 2000.
>
> **FACTS**:
>
> The merchandise at issue is magnesium anodes in two forms, both
> produced from ingots, typically 99.8 percent magnesium, by weight. The
> first article, a cast magnesium anode, consists of magnesium cast
> around an iron or steel core. The second article, an extruded
> magnesium ribbon anode, is produced in standard 1,000-foot coils.
> Specifications for this type anode include a core wire but the
> literature provides no further description of this component. Both
> anodes will be attached to a cathode (usually a buried pipe or metal
> structure) that is being electrolytically protected from rust and
> corrosion. Typically, a steel wire will be welded to the protruding
> steel core of the first type anode and then attached to the cathode.
> The ribbon-type anode will be laid parallel to the article being
> protected. Steel wires are welded to the anode at various points along
> its length, which are then welded to the cathode.
>
> \- 2 -

The anodes were entered under a provision of heading 8543, HTSUS, as

electrical machines and apparatus, having individual functions, not
specified or

included elsewhere in Chapter 85. Citing a ruling on substantially
similar

merchandise, your office liquidated the entries under a provision of
heading 8104,

HTSUS, as other unwrought magnesium.

Counsel for the protestant makes the following arguments in support of
the entered provision or, alternatively, the "parts" provision of the
same heading: (1) the articles are "sacrificial" anodes which, through
the process of electrolysis described by heading 8543, ionic current
flows from the anode to the steel article being protected, i.e., the
cathode. The result is that the corrosive effect of the electrolyte from
the soil is directed to the anode, thereby protecting the cathode from
rust and corrosion; (2) a Customs ruling classifies high silicon iron
castings to be completed after importation into impressed current anodes
for cathodic protection -- claimed to be substantially similar to the
articles in this protest - in heading 8543; and finally, (3) a ruling
from another Customs administration classifies at least the first type
magnesium anode as other electrical machines and apparatus, in heading
8543.

The HTSUS provisions under consideration are as follows:

8104. Magnesium and articles thereof, including waste and scrap:

> Unwrought magnesium:

0.  Containing at least 99.8 percent by weight of magnesium

> **8104.19.00** Other
>
> **8104.90.00** Other

**\* \* \* \* \***

8543. Electrical machines and apparatus, having individual

> functions, not specified or included elsewhere \[in chapter 84\];
>
> parts thereof:

0.  Machines and apparatus for electroplating, electrolysis

> or electrophoresis:

\- 3 -

Other machines and apparatus:

**8543.89.96** Other

90. Parts:

> **8543.90.88** Other

**ISSUE**:

Whether the magnesium anodes for use in sacrificial cathodic protection
systems are unwrought forms of magnesium of heading 8104, machines and
apparatus for electrolysis of heading 8543, or parts of such apparatus.

**LAW AND ANALYSIS**:

Under General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule
of the United States (HTSUS), goods are to be classified according to
the terms of the headings and any relative section or chapter notes, and
provided the headings or notes do not require otherwise, according to
GRIs 2 through 6.

The liquidated classification was based on [HQ]{.underline} 557046,
dated May 17, 1993, which held, in part, that cast magnesium anodes were
among the manufactured primary forms of metal listed in the Section XV,
Additional U.S. Note 1, HTSUS, definition of the term
"[unwrought]{.underline}." Clearly, however, molten magnesium cast
around an iron or steel wire or other core does not qualify as a "form
of metal" of the kind contemplated by

Note 1. Subsequently, [HQ]{.underline} 965250, dated November 20, 2001,
modified [HQ]{.underline} 557046 to reflect this fact, and to classify
anodes for use in sacrificial cathodic protection systems as *apparatus*
for electroplating, electrolysis or electrophoresis in subheading
8543.30.00. As [HQ]{.underline} 965250 governs the classification of the
anodes at issue, the principles of that decision are incorporated by
reference here. For purposes of clarification, however, further
discussion of the relevant issues in [HQ]{.underline} 965250 is
warranted.

Heading 8104 is in Section XV, HTSUS. Section XV, Note 1(f), HTSUS,
excludes articles of Section XVI (machinery, mechanical appliances and
electrical goods). So, if the anodes at issue here are found to be goods
of heading 8543, and not more specifically provided for elsewhere in
Chapter 85, they must be classified in heading 8543. We agree with
counsel's description of the process of *electrolysis*, and that
machines and apparatus for electrolysis are provided for in heading
8543. It is important to note, however, that two common types of
cathodic protection systems

\- 4 -

exist, impressed current and sacrificial. Both types may be described as
an electro-chemical process, a galvanic process or as electrolysis. The
first type, impressed current cathodic protection, involves the
application of an external current to operate. Cast magnesium anodes
used with impressed current cathodic protection systems are connected to
the external power source after importation. In such cases, the
magnesium anodes would be considered *parts* solely or principally used
with electrical machines and apparatus, and classifiable in subheading
8543.90.88, HTSUS. The ruling counsel cites, [HQ]{.underline} 088175,
dated May 30, 1991, classified high silicon iron castings as other
electrical machines and apparatus, in subheading 8543.80.90 (now
8543.89.96), HTSUS. These, however, were incomplete or unfinished
articles which, after importation, were to be completed into impressed
current anodes. Even when completed, these anodes provide no galvanic
protection function at all. They require the application of an external
power source to operate. This was recognized in

[HQ]{.underline} 965252, dated November 20, 2001, which revoked
[HQ]{.underline} 088175 and classified the castings as "parts" in
heading 8543.

The second type of cathodic protection system involves the anodes in
this protest. The process involves one metal being coupled, usually
through a metallic wire, to a more reactive (anodic) metal. This
connection is referred to as a galvanic couple. The anode material must
have a large enough natural voltage difference to produce an electrical
flow through the wire to the cathode. The magnesium/iron/steel anode has
a large enough natural voltage difference to independently produce a
flow of electric current. No outside power is required for this system
to be effective. Upon receiving current, negatively charged ions flow
from the anode to the tank, pipeline or other object being protected,
i.e., the cathode. This phenomenon initiates the buildup of a protective
alkali layer on the cathode, thus arresting the buildup of corrosion on
its surface, while gradually oxidizing or eroding the anode in the
process. Hence, the term "sacrificial." In this case, there is no
indication that an independent electrical source is required for these
anodes to perform their intended end use service application. Such
anodes would be considered goods included in heading 8543, pursuant to
Section XVI, Note 2(a), HTSUS, and classified in subheading 8543.30.00,
HTSUS, in accordance with

[HQ]{.underline} 965250.

This conclusion is in concert with a successful appeal from a Revenue
Canada classification decision, which counsel cites, in which in
substantially similar merchandise was found to be classified in
subheading 8543.30 as machines and apparatus for electroplating,
electrolysis or electrophoresis. [See]{.underline} Canadian
International Trade Tribunal Appeal No. AP-96-041 (1998).

\- 5 -

**HOLDING**:

Under the authority of GRI 1 and Section XVI, Note 2(a), HTSUS, the cast
magnesium anodes and extruded magnesium ribbon anodes, as described, are
provided for in heading 8543. They are classifiable in subheading
8543.30.00, HTSUS.

The entries should be reliquidated under this provision and the protest
ALLOWED.

Copies of all cited rulings are enclosed for your convenience.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065,
dated August 4, 1993, Subject: Revised Protest Directive, you are to
mail this decision, together with the Customs Form 19, to the protestant
no later than 60 days from the date of this letter. Any reliquidation of
the entry or entries in accordance with the decision must be
accomplished prior to mailing the decision. Sixty days from the date of
the decision the Office of Regulations and Rulings will make the
decision available to Customs personnel, and to the public on the
Customs Home Page on the World Wide Web at www.customs.gov, by means of
the Freedom of Information Act, and other methods of public
distribution.

> Sincerely,
>
> John Durant, Director
>
> Commercial Rulings Division

Enclosures