HQ 956889
CLA-2 RR:TC:FC 956889 ASM
Ms. Mariana Davidovich
Manager Commercial Affairs
Cyanamid
Latin American Group
Government & Commercial Affairs
One Cyanamid Plaza
Wayne, NJ 07470
RE: Revocation of NYRL 871563 concerning the tariff
classification of moxidectin technical concentrate (CAS# 113507-06-5)
Dear Ms Davidovich:
This letter concerns the revocation of New York Ruling
Letter (NYRL) 871563, dated March 20, 1992, regarding the
classification of moxidectin technical concentrate (CAS# 113507-06-5). Pursuant to section 625, Tariff Act of 1930 (19 U.S.C.
1625), as amended by section 623 of title VI (Customs
Modernization) of the North American Free Trade Implementation
Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993) (hereinafter
section 625), notice of the proposed revocation of NYRL 871563,
was published on November 22, 1995, in the Customs Bulletin,
Volume 29, Number 47.
FACTS:
The subject product is identified as moxidectin technical
concentrate and is imported from Argentina to be used as an anti-parasitic drug. In NYRL 871563, the merchandise was classified
within subheading 2932.90.5000, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), which provides for heterocyclic
compounds with oxygen hetero-atom(s) only, dutiable at 3.7
percent ad valorem.
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At this time, your company is asserting that, based upon a
decision rendered by the Harmonized System Committee, the subject
product is, in fact, properly classifiable within subheading
2932.29.2000, HTSUSA, which provides for lactones: other
lactones: aromatic: drugs, dutiable at 7.2 percent ad valorem.
ISSUE:
What is the proper classification under the HTSUSA for
moxidectin technical concentrate (CAS# 113507-06-5)?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is made in
accordance with the General Rules of Interpretation (GRI's). As
stated in GRI 1, the classification is determined first in
accordance with the terms of the headings which must be read in
conjunction with the relative section and chapter notes. If GRI
1 fails to classify the goods and if the headings and legal notes
do not otherwise require, the remaining GRI's are applied in
their appropriate order. The Explanatory Notes to the Harmonized
Commodity Description and Coding System (EN's), facilitate
classification under the HTSUSA by offering guidance in
understanding the scope of the headings and GRI's.
Moxidectin is comprised of a heterocyclic compound with more
than one functional group in the structure. As such, we have
determined that the product is properly classifiable under
heading 2932, HTSUSA, which provides for "Heterocyclic compounds
with oxygen hetero-atom(s) only." We further recognize the
recommendations of the Harmonized System Committee in classifying
moxidectin under subheading 2932.29, HTSUSA, as a lactone.
However, we do not agree with Cyanamid's claim that the product
is properly classifiable within subheading 2932.29.2000, HTSUSA,
as an aromatic lactone.
According to Additional U.S. Note 2(a) to Section VI,
HTSUSA, for the purposes of the tariff schedule, the term
"aromatic" refers to chemical compounds containing one or more
fused or unfused benzene rings. As evidenced by its chemical
structure, moxidectin does not contain any fused or unfused
benzene ring(s). Therefore, pursuant to Additional Note 2(a) to
Section VI, HTSUSA, the subject product is not an "aromatic"
compound for tariff purposes. Thus, it is our determination that
moxidectin is properly classifiable in subheading 2932.29.5050,
HTSUSA, which provides for "... Lactones: Other lactones: Other,
Other."
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HOLDING:
The product, moxidectin, is properly classified under
subheading 2932.29.5050, HTSUSA which provides for "Heterocyclic
compounds with oxygen hetero-atom(s) only:
Lactones: Other lactones: Other, Other" which is dutiable under
the general column one rate
of 3.7 percent ad valorem.
Articles classifiable under subheading 2932.29.5050, HTSUSA,
which are products of Argentina, are entitled to duty free
treatment under the Generalized System of Preferences (GSP) upon
compliance with all applicable regulations.
NYRL 871563, dated March 20, 1992, is hereby revoked. In
accordance with section 625, this ruling will become effective 60
days after its publication in the Customs Bulletin. Publication
of rulings or decisions pursuant to section 625 does not
constitute a change of practice or position in accordance with
section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division
CLA-2 RR:TC:FC
956889 ASM
U.S. CUSTOMS SERVICE
GENERAL NOTICE
19 CFR PART 177
REVOCATION OF CUSTOMS RULING LETTER
RELATING TO TARIFF CLASSIFICATION OF MOXIDECTIN
AGENCY: U. S. Customs Service, Department of Treasury
ACTION: Notice of proposed revocation of tariff classification
ruling letter.
SUMMARY: Pursuant to section 625(c)(1), Tariff Act of 1930 (19
U.S.C. 1625 (c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act (Pub. L. 103-182, 107 Stat. 2057), this notice
advises interested parties that Customs is revoking a ruling
pertaining to the tariff classification of moxidectin technical
concentrate (CAS# 113507-06-05). Notice of the proposed revocation
was published on November 22, 1995, in the Customs Bulletin.
EFFECTIVE DATE: Merchandise entered or withdrawn from warehouse for
consumption on or after (60 days after publication in the Customs
Bulletin).
FOR FURTHER INFORMATION CONTACT: Ann Segura Minardi, Food and
Chemicals Classification Branch, (202-482-6958).
SUPPLEMENTARY INFORMATION:
Background
On November 22, 1995, Customs published a notice in the
Customs Bulletin, Volume 29, Number 47, proposing to revoke New
York Ruling Letter (NYRL) 871563, dated March 20, 1992, which
classified the merchandise, Moxidectin technical concentrate (CAS
# 113507-06-5), within subheading 2932.90.5000, Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), which provides
for heterocyclic compounds with oxygen hetero-atom(s) only,
dutiable at 3.7 percent ad valorem. No comments were received in
response to this notice.
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Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act (Pub. L. 103-182, 107 Stat. 2057), this notice
advises interested parties that Customs is revoking NYRL 871563 to
reflect the proper classification of Moxidectin under subheading
2932.29.5050, HTSUSA, which provides for "Heterocyclic compounds
with oxygen hetero-atom(s) only: Lactones: Other lactones: Other,
Other" which is dutiable under the general column one rate of 3.7
percent ad valorem. Moxidectin is comprised of a heterocyclic
compound with more than one functional group in the structure.
Headquarters Ruling Letter (HRL) 956889 revoking NYRL 871563, is
set forth in the Attachment to this document.
Publication of rulings or decisions pursuant to section 625
does not constitute a change of practice or position in accordance
with section 177.10(c)(1), Customs Regulations (19 CFR
177.10(c)(1)).
John Durant, Director
Tariff Classification
Appeals Division
Dated: