CLA-2-29:OT:RR:NC:N3:140
Mr. Peter Murphy
Candelay Industries LLC
4023 Kennett Pike
Greenville, DE 19807
RE: The tariff classification of Cannabidiol (CBD) in bulk powder (isolate) from Colombia
Dear Mr. Murphy:
In your letter dated May 28, 2020, you requested a tariff classification ruling on behalf of Candelay Industries LLC.
The subject product is a Cannabidiol (CBD) Isolate (CAS # 13956-29-1) powder hemp extract containing 98% CBD and less than 0.1% THC per attached certificate of analysis. The powder is derived through CO2 extract of Cannabis sativa L. plant followed by distillation and crystallization process. It is packed in high density polyethylene drums in 1.0 kg and 2.5 kg quantities.
You indicated that all CBD products under review are “designated for business to business sale and have been third-party laboratory tested to ensure concentrations of no more than 0.2% of THC on a dry weight basis.” You state that they are defined as “hemp extracts under the US Agricultural Improvement Act of 2018.” All products are indicated to have been derived solely from hemp grown in the country of Colombia under the Ministry of Health (MinSalud) and Ministry of Justice (MinJusticia) legal pilot programs and manufactured in Colombia using Good Manufacturing Practices (GMP). All products are stated to be for commercial use in the United States as an ingredient in the manufacture of pharmaceutical, nutritional, veterinary and cosmetic products.
The applicable subheading for the Cannabidiol (CBD) Isolate (CAS # 13956-29-1) will be 2907.29.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Polyphenols; phenol-alcohols: Other.” The rate of duty will be 5.5 percent ad valorem.
Articles classifiable under subheading 2907.29.9000, HTSUS, which are products of Colombia, may be entitled to duty-free treatment under the United States - Colombia Trade Promotion Agreement Implementation Act (CO) upon compliance with all applicable regulations. The CO is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on CO, check our Web site at www.cbp.gov and search for the term "CO".
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 Hodgkiss at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division