CLA-2 R:C:F 957174 RC
Mr. Michael Dahm
Willson International Inc.
100 River Rock Drive
Buffalo, New York 14207
RE: Tariff Classification of Hemp Chips and Stalks
Dear Mr. Dahm:
This letter is in response to your letter of October 14,
1994, on behalf of your client, Hempline Inc., requesting a
classification ruling for hemp chips and stalks to be imported
from Canada. You asked us whether it is legal to import the hemp
chips and stalks. You submitted samples.
FACTS:
Your client grows, under a Canadian license, True Raw Hemp
(Cannabis Sativa L.) in Canada and wishes to import into the
United States dry material from the stalks of the plant. The dry
hemp chips are split from stalks and cut into pieces measuring
between one and five centimeters in length. The leaves and seeds
have been removed. The materials are not retted hemp, scutched
hemp, combed hemp, or tow and waste of hemp. The material will
be shipped in the form of balers or small chips to the United
State for further manufacture. The resulting end products will
be particle board, plant containers and compressed fuels. You
believe the hemp chips and stalks fall into subheading
5302.10.0000 HTSUSA.
ISSUE:
Whether the hemp stalks and chips should be classified in
heading 5302, HTSUSA, the provision for true hemp (Cannabis
sativa L.), raw or processed but not spun; tow and waste of true
hemp, or in heading 1403, HTSUSA, the provision for vegetable
materials of a kind used primarily in brooms or in brushes,
whether or not in hanks or bundles.
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the
United States (HTSUS) is made in accordance with the General
Rules of Interpretation (GRIs). The systematic detail of the
harmonized system is such that virtually all goods are classified
by application of GRI 1, that is, according to the terms of the
headings of the tariff schedule and any relative Section or
Chapter Notes. In the event that the goods cannot be classified
solely on the basis of GRI 1, and if the headings and legal notes
do not otherwise require, the remaining GRIs may then be applied.
The Explanatory Notes (ENs) 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.
Heading 5302, HTSUSA, provides for, "True hemp (Cannabis
sativa L.), raw or processed but not spun; tow and waste of true
hemp (including yarn waste and garnetted stock)," free of duty.
The EN to heading 5302 states that heading 5302 does not
cover the hard woody part of plants removed during scutching.
The woody part of plants removed during scutching would fall into
heading 4401. Scutching is a process of knocking out the woody
parts by beating to free the fibers. The samples do not appear
to have been scutched.
Additionally, the EN states that heading 5302 does not cover
Tampico "hemp" classified in heading 1403 or 5304. These
headings provide for vegetable materials of a kind used primarily
in brooms or brushes, et al. and sisal and other textile fibres
of the genus agave, et al.
In sum, we find the other provisions for vegetable materials
do not apply to the two items at issue, nor do the provisions for
wood and wood chips in headings 4401 through 4407 apply to either
the raw true hemp stalks or chips.
We partially agree with you and find the raw hemp stalks
fall into subheading 5302.10.0000, HTSUSA. However, we find the
processed hemp small chips fall into subheading 5302.90.0000,
HTSUSA. Both are free of duty. The HTSUSA provides for the
importation of the true hemp stalks and chips at issue without
mention of restrictions for Customs purposes.
HOLDING:
The raw hemp stalks fall into subheading 5302.10.0000,
HTSUSA, the provision for true hemp, raw or retted. The
processed hemp small chips fall into subheading 5302.90.0000,
HTSUSA, the provision "other." Both are free of duty under the
Harmonized Tariff Schedule..
With respect to the legality or licensing requirements of
importing these hemp products
into the United States., we suggest you contact Mr. John P.
Mudri, Staff Coordinator, Chemical and Drug Unit, Office of
Diversion Control, Drug Enforcement Administration, P.O. Box
28037, Washington, D.C. 20005.
Sincerely,
John Durant, Director
Commercial Rulings Division