CLA-2:OT:RR:NC:N3:139
Mr. Richard Salamone
BASF Corporation
100 Park Avenue
Florham Park, NY 07932
RE: The Tariff Classification of Tocopherol VOD Concentrate from China
Dear Mr. Salamone:
In your letter dated October 9, 2019, you requested a tariff classification ruling for Tocopherol VOD Concentrate. This ruling request was submitted to our laboratory for review. The laboratory analysis of the sample submitted is now complete and our determination follows.
The product is identified as VOD (Vegetable Oil Distillate) Concentrate, and is stated to be composed of small amounts of natural vitamin E (tocopherols), with various other impurities and natural chemical constituents. The tocopherol concentrates are derived from soybean/canola waste exported from the US to China where the waste is distilled and esterified. Certain chemical constituents are then removed resulting in the remainder of various impurities such as phytosterols. Other chemical substances or natural plant oils, are added to the remaining Vitamin E to create the tocopherol concentrate. After importation, the VOD concentrate is further processed to produce Natural Vitamin E and products requiring the anti-oxidant benefits of tocopherols.
In your letter, you suggest classification in subheading 2936.28.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Vitamin E (Tocopherols and related compounds with Vitamin E activity) and its derivatives.” We disagree. According to our Laboratory, the imported product is mixed tocopherols in a mixture with esters, fats, fatty acids, and other fatty substances. The plant sterol esters are not impurities as per Note 1 to Chapter 29, HTSUS, but rather a co-product with the tocopherols. The applicable subheading for the Tocopherol VOD Concentrate will be 3824.99.2890, 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: Other: Other: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances: Other. The rate of duty will be 6.5 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3824.99.2890, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 3824.99.2890, HTSUS, listed above. The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 the World Wide Web at https://hts.usitc.gov/current.
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 Paul [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division
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