OT:RR:NC:N3:139
Michael Lehn
Siegwerk EIC LLC
150 Craftsman Drive Morganton, NC 28655
RE: The country of origin of a photoinitator blend
Dear Mr. Lehn:
In your letter dated January 19, 2023, and subsequent email correspondence dated January 23, 2023, you requested a country of origin ruling on a blend of two photoinitator compounds. The blend will be considered as a photoinitator to be used in the formulation of inks.
Description of Goods: Raw Materials
The raw materials used in the production of this blend will be 1-Hydroxycyclohexyl phenyl ketone (CAS 947-19-3), and 2-Hydroxy-2-methylphenyl propane-1-one (CAS 7473-98-5) both of which have a Harmonized Tariff Schedule of the United States (HTSUS) number of 2914.40.4000 and a country of origin of China.
Manufacturing Process
The two Chinese origin photoinitiator compounds would be mixed together in Germany. In one part of your original submission you state that the two compounds would be “blended together in some ratio,” while in another part you state the item would be “50/50 Blend of any mixture regardless of ration…” In your email, you stated that CAS 7473-98-5 would also be used as a diluent to assist in turning the crystalline CAS 947-19-3 into a liquid solution.
Country of Origin and Classification
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
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).
CBP has generally held that mere mixing of two substances in another country, not involving a chemical reaction and without additional processing, does not result in a product of such other country. See HQ 561986. The basic properties of both the Chinese origin photoinitator compounds in the processing described above remain essentially unchanged. The completed mixture would also be used as a photoinitator which are basically defined as compounds that break down into free radicals upon exposure to ultraviolet radiation. The free radicals then react with monomers and/or oligomers to initiate polymer chain growth. In your email, you stated “Each component (184 & 1173) will set off a free radical in the ink formulation when exposed to a specific wavelength of light. . .” It is our opinion that there is no substantial transformation of the starting materials. Therefore, the mixture of photoinitator compounds retain their original country of origin identity of China.
The applicable subheading for the photoinitator mixture will be 3824.99.2900, 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: Other: 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 3824.99.2900, 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 3824.99.2900, 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, including information on exclusions and their effective dates, 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.
This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency (EPA). Information on the TSCA can be obtained by contacting the EPA at Document Control Office (7407M), Office of Pollution Prevention and Toxics (OPPT), Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., Washington, D.C., 20460, by calling the Toxic Substances Control Act Hotline at 800-471-7127, by e-mailing to [email protected], 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 John Bobel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division