OT:RR:NC:N3:140
Fernando Arias
ATTICUS LLC
940 NW Cary Parkway #200 Cary, NC 27513
RE: The country of origin of Flumioxazin (CAS# 103361-09-7)
Dear Mr. Arias:
In your letter dated January 17, 2023, you requested a country of origin ruling on a formulated product of 51.0% Flumioxazin (CAS# 103361-09-7) from Panama.
You state that Flumioxazin (2-[7-fluoro-3,4-dihydro-3-oxo-4-(2-propyn-1-yl)-2H-1,4-benzoxazin-6-yl]-4,5,6,7-tetrahydro-1H-isoindole-1,3(2H)-dione) 98.3%, (CAS# 103361-09-7) concentration is a technical grade product (active ingredient) for manufacturing use only. The country of origin of the Flumioxazin Technical is China or India. The Flumioxazin Technical from China or India is to be exported to Panama, where it will be processed into the final form in which it will be imported into the United States. The Flumioxazin Technical is mixed with inert ingredients in Panama, namely dispersants, wetting agents, an anticaking agent, carriers and binders from USA and Europe, then it is milled and granulized to be packed in five-pound bags for export to the United States.
Country of Origin
The "country of origin" is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. 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 this part."
The test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
General Note 35, HTSUS, sets forth the criteria for determining whether a good is originating under the US-Panama Trade Promotion Agreement. Under General Note GN 35(n) (v) For purposes of applying this note to goods of chapters 27 through 40, inclusive (except a good of heading 3823), of the tariff schedule, a good that undergoes a chemical reaction as defined herein shall be treated as an originating good for purposes of this note, notwithstanding any product-specific rules enumerated in this note, provided all other applicable requirements are satisfied. A “chemical reaction” is a process (including a biochemical process) which results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule. Since no chemical reaction took place, it is the opinion of this office that the instant product does not meet this requirement.
Furthermore, in HRL 734558 dated July 22, 1992, involving the mixing of various substances, Customs addressed the manipulation of an herbicide and found that there was no substantial transformation when the herbicide, exported in bulk to France, was encapsulated into a water-soluble film. In that case, Customs pointed out that the operation did not change the chemical composition of the herbicide but only facilitated its use. See also HRL 555064 dated March 29, 1990, where Customs determined that the formulation of propanil-4, an herbicide for rice, from technical propanil did not constitute a substantial transformation.
It is our opinion that the country of origin for the 51% Flumioxazin granules, which you state is the end result, having undergone no chemical reaction when imported into the United States, will be based on the origin of the active ingredient Flumioxazin (CAS# 103361-09-7). The country of origin of the product is India when the Flumioxazin (CAS# 103361-09-7) originates from India. Similarly, the country of origin of the product is China when the Flumioxazin (CAS# 103361-09-7) originates from China.
This merchandise may be subject to the requirements of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), which is administered by the U.S. Environmental Protection Agency (EPA), Office of Pesticide Programs. Information on the FIFRA can be obtained by calling the EPA at (202) 260-2090, or by visiting their website at www.epa.gov.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Evan Thomas at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division