CLA-2-29:OT:RR:E:NC:2:239
Mr. Karl F. Krueger
Radix International dba Global Forwarding
2660 20th St.
Port Huron, MI 48060
RE: The tariff classification of N-methyl-1-(4-methylthiazol-2), CAS 644950-37-8, as a Prototype under Subheading 9817.85.01 from China
Dear Mr. Krueger:
In your letter dated June 17, 2009, on behalf of your client Cychem Inc., you requested a tariff classification ruling on the applicability of subheading 9817.85.01 ("Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes") for N-methyl-1-(4-methylthiazol-2). The imported product is a chemical intermediate used to manufacture an exploratory drug for research and development purposes. The drug being developed in the United States will either be Beta Secretase Inhibitor or Angiogenesis Inhibitor.
We do not agree with your claim that the imported compound, N-methyl-1-(4-methylthiazol-2), should be eligible for duty-free treatment as a prototype imported for testing under subheading 9817.85.01, Harmonized Tariff Schedule of the United States (HTSUS). U.S. Customs and Border Protection determinations are based on "condition as imported". N-methyl-1-(4-methylthiazol-2), in its condition as imported, is not intended for testing in the U.S. It is undergoing more than the purposes specified in subheading 9817.85.01, HTSUS, wherein the article entered as a prototype must be used "exclusively for development, testing, product evaluation, or quality control purposes."
You reference Headquarters Ruling Letter 562174, dated June 19, 2002, which concerned actual imported prototypes used exclusively for development, testing, or product evaluation without further processing. The imported compound, N-methyl-1-(4-methylthiazol-2), will be used as a raw material in the synthesis of the prototype and, therefore, does not meet the requirements of U.S. Note 6 to subchapter XVII of Chapter 98, HTSUS.
The applicable subheading will be 2934.10.9000, HTSUS, which provides for "Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds: Compounds containing an unfused thiazole ring (whether or not hydrogenated) in the structure: Other: Other." The rate of duty will be 6.5% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Richard Dunkel at 646-733-3032.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division