CLA-2-96:RR:NC:2:236 D80818

Mr. Karl F. Krueger
AEI Customs Brokerage Service
1600 West Lafayette
Detroit, MI 48216

RE: The tariff classification of Empty Hard-Shell Gelatin Capsules from Canada.

Dear Mr. Krueger:

In your letter dated July 29, 1998, on behalf of your client, R.P. Sherer of Windsor, Ontario, Canada, you requested a tariff classification ruling.

The information provided with your letter indicates that the empty hard-shell gelatin capsules made by Sherer contain N.F. Grade Gelatin, Water and approximately 1% N.F. and U.S.P. Grade chemicals used as processing aids. You believe that the capsules should be classified in subheading 1905.90.9090 rather than 9602.00.1040, because they are hard capsules and not soft capsules commonly associated with Vitamin E.

The term "hard" or "hardened" for Customs purposes means that the gelatin has been treated with formaldehyde, phenol or other preservatives to convert the gelatin to a plastic material. The information you provided indicates no such treatment took place. In our opinion, the capsules under consideration are not "hard" or "hardened" gelatin.

The applicable subheading for empty hard-shell gelatin capsules made by Sherer will be 9602.00.1040, Harmonized Tariff Schedule of the United States, which provides for Worked vegetable or mineral carving material and articles of these materials; molded or carved articles of wax, of stearin, of natural gums or natural resins, of modeling pastes, and other molded or carved articles, not elsewhere specified or included; worked, unhardened gelatin (except gelatin of heading 3503) and articles of unhardened gelatin: Worked unhardened gelatin and articles thereof: Unfilled gelatin capsules. The rate of duty will be 3.2 percent ad valorem.

Articles classifiable under subheading 9602.00.1040 HTS, which are products of Canada, are entitled to duty free treatment under the North American Free Trade Agreement (NAFTA) upon compliance with all applicable regulations.

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 V. Gualario at 212-466-5744.


Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division