CLA-2-38:OT:RR:NC:2:239
Ms. Nicole L. Mulligan
UPS Supply Chain Solutions
140 Thad Johnson Road
Unit 3
Ottawa ON K1V 0R4
Canada
RE: The tariff classification and country of origin of a fluid loss control additive from Canada
Dear Ms. Mulligan:
In your letter dated October 13, 2010, on behalf of your client Diversity Technologies Corporation, you requested a tariff classification ruling and country of origin determination for a cement fluid loss additive you refer to as B348.
The product, B348, is a blend consisting of polyvinyl alcohol, calcium carbonate, boric acid, melflux, and a defoamer powder. The product is indicated for use primarily as a fluid loss control additive for oil field cementing applications. The polyvinyl alcohol is a product of China. The calcium carbonate is a product of Canada. The boric acid and the defoamer powder are of US origin and the melflux is a product of Germany. The components are blended together in Canada and exported to the United States in a powdered form packaged in pails. The product is a mixture of chemical products for use as a prepared cement additive.
Section 134.1 (b) of the Customs Regulations (19 C.F.R. 134.1(b)) defines "country of origin" as the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial
transformation in order to render such other country the "country of origin" within the meaning of the marking laws and regulations. For country of origin purposes, a substantial transformation of an imported article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the imported article (19 C.F.R. 134.35).
In the instant case we find that the blending of Chinese produced polyvinyl alcohol, German produced melflux, Canadian produced calcium carbonate, and U.S. produced boric acid and defoamer results in a product, B348, which has an identity distinct from the materials from which it was produced. Therefore, we hold that B348 has undergone a substantial transformation as a result of the operations performed in Canada, and that the country of origin is Canada.
The applicable subheading will be 3824.40.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Prepared additives for cements, mortars or concretes: Other. The rate of duty will be 5 percent 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