Imported Silicon Waters Products of Ukraine Not Belarus, Avoid Column 2 Rate

Silicon wafers made from U.S.-origin polysilicon turned into ingots in Ukraine and finished in Belarus are products of Ukraine, according to an Oct. 17 CBP ruling. The doping process that creates a positive or negative current occurs in Ukraine, and imparts the essential character, CBP said in NY N328489.

The wafers use U.S.-originating electronic-grade polysilicon that is exported to Ukraine, where it is cleaned of surface impurities and melted and doped. The doping process involves the intentional introduction of contaminants that create a positive or negative current, depending on the doping process. A "seed" crystal is introduced to impart a lattice structure and the material is slowly pulled into a solidified crystal, CBP said.

The boules are then sent on to Belarus, where they are ground and trimmed, then sliced and polished. The wafers are then trimmed and etched.

CBP ruled that the U.S.-origin polysilicon was substantially transformed into monocrystalline silicon ingots in Ukraine, with "physical and electrical properties" that are distinct from the polysilicon and that make the ingots useful for integrated circuit production. Silicon Materials Inc. (SMI) processes the semiconductor ingots into wafers in Belarus in a process consistent with other wafer preparations "regardless of where preformed" that consists of slicing, grinding and polishing processes. These processes leave the identity of the underlying ingot intact and, according to CBP, do not effect a substantial transformation.

The ruling is a victory for SMI because Belarus is a column 2 country as of April (see 2204070036). Had CBP ruled that the wafers were products of Belarus, they would have been subject to higher column 2 tariffs.