H303359

HQ H303359 February 24, 2020 OT:RR:CTF:CPMMA H303359 APP CATEGORY: Classification TARIFF NO.: 2932.20.5050 Mr. Michael O’Neill O’Neill & Whitaker, Inc. 1809 Baltimore Avenue Kansas City, MO 64108 RE: Reconsideration of NY 869250, NY H85785, NY K86757, and NY H87465; Tariff classification of Doramectin, Ivermectin, Abamectin Technical, and Milbemectin Technical Dear Mr. O’Neill: This is to inform you that U.S. Customs and Border Protection (“CBP”) has reconsidered New York Ruling Letter (“NY”) 869250, dated February 6, 1992 (issued to Pfizer, Inc.); NY H85785, dated January 10, 2002 (issued to Austin Chemical Company); NY K86757, dated July 26, 2004 (issued to Nations Ag II); and NY H87465, dated January 24, 2002 (issued to Sumitomo Corporation of America), regarding the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of Doramectin, Ivermectin, Abamectin Technical, and Milbemectin Technical. In NY 869250, CBP classified the Doramectin under heading 2941, specifically under subheading 2941.90.50, HTSUS, free of duty, which provided for “Antibiotics: Other: Other: Other.” In NY H85785, NY K86757, and NY H87465, CBP classified the Ivermectin, the Abamectin Technical, and the Milbemectin Technical, respectively, under heading 3824, specifically under subheading 3824.90.91, HTSUS, at a duty rate of 5% ad valorem, which provided 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; residual products of the chemical or allied industries, not elsewhere specified or included: Other: Other: Other: Other: Other.” We have determined that NY 869250, NY H85785, NY K86757, and NY H87465 are in error. Therefore, for the reasons set forth below, we hereby revoke NY 869250, NY H85785 and NY K86757, and modify NY H87465. Pursuant to section 625(c)(l), Tariff Act of 1930 (19 U.S.C. § 1625(c)(l)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice was published in the Customs Bulletin, Volume 53, No. 45, on December 11, 2019, proposing to revoke NY 869250, NY H85785 and NY K86757, and to modify NY H87465, and to revoke any treatment accorded to substantially identical transactions. One comment in favor of and one in opposition to the instant action were received in response to the notice and are addressed below. FACTS: The Doramectin from Japan in NY 869250 is described as: “[Chemical Abstract Number (“CAS”)] 117704-25-3, … used as an antiparasitic agent for cattle and swine … it will be imported in bulk form.” According to the USP Dictionary online, the Doramectin’s chemical name is known as: Avermectin A1a, 25-cyclohexyl-5-O-demethyl-25-de(1-methylpropyl)-; (2) (2aE,4E,8E)-(5’S,6S,6’R,7S,11R,13S,15S,17aR,20R,20aR,20bS)-6’-cyclohexyl-5’,6,6’,7,10,11,14,15,17a,20,20a,20b-dodecahydro-20,20b-dihydroxy-5’,6,8,19-tetramethyl-17-oxospiro[11,15-methano-2H,13H,17H-furo[4,3,2-pq][2,6] benzodioxacyclooctadecin-13,2’-[2H]pyran]-7-yl 2,6-dideoxy-4-O-(2,6-dideoxy-3-O-methyl-a-L-arabino-hexopyranosyl)-3-O-methyl-a-L-arabino-hexopyranoside. The Ivermectin (CAS No. 70288-86-7) from China in NY H85785 is described as: “a mixture of (10E,14E,16E,22Z)-(1R,4S,5'S,6S,6'R,8R,12S,13S, 20R,21R,24S)-6'-[(S)-sec-butyl]-21,24-dihydroxy-5',11,13,22-tetramethyl-2-oxo-(3,7,19-trioxatetracyclo [15.6.1.14,8.020,24] pentacosa-10,14,16,22-tetraene)-6-spiro-2'-(perhydropyran)-12-yl 2,6-dideoxy-4-O-(2,6-dideoxy-3-O-methyl-a-L-arabino-hexopyranosyl)-3-O-methyl-a-L-arabino-hexopyranoside (10E,14E,16E,22Z)-(1R,4S,5'S,6S,6'R,8R,12S, 13S,20R,21R,24S)-21,24-dihydroxy-6'-isopropyl-5',11,13,22-tetramethyl-2-oxo-(3,7,19-trioxatetracyclo[15.6.1.14,8.020,24] pentacosa-10,14,16,22-tetraene)-6-spiro-2'-(perhydropyran)-12-yl 2,6-dideoxy-4-O-(2,6-dideoxy-3-O-methyl-a-L-arabino-hexopyranosyl)-3-O-methyl-a-L-arabino-hexopyranoside … this product will be used as a pharmaceutical intermediate and will be packaged in bulk form.” The Abamectin Technical from China in NY K86757 is described as a product, “which … will be used as a material for formulation into end-use products that are used as miticides/insecticides for the control of pests in agronomic, turf, nursery, and ornamental crops. The chemical name is Avermectin B1; 5-O-demethylavermectin Ala and 5-0-demethyl-25-de(1-methylpropyl)-25-(1-methylethyl) avermectinA1a(4:1).” The Abamectin Technical is a mixture of more than 80% avermectin B1a and less than 20% avermectin B1b, and will be mixed with water. The Milbemectin Technical imported in bulk form from Japan in NY H87465 is described as consisting of “a natural (i.e., non-formulated), nonisomeric mixture composed of (by weight) approximately 30% milbemectin A3 (CAS-51596-10-2) and 70% milbemectin A4 (CAS-51596-11-3). The CAS Registry name for milbemectin is (6R,25R)-5-O-demethyl-28-deoxy-6,28-epoxy-25-ethylmilbemycin B mixture with (6R,25R)-5-O-demethyl-28-deoxy-6,28-epoxy-25-methylmilbemycin B.” The Milbemectin Technical is advertised as soluble in ethanol, methanol, dimethylformamide, or dimethyl sulfoxide, and having poor water solubility. ISSUES: Whether the Doramectin and the Ivermectin are classified in heading 2932, HTSUS, as heterocyclic compounds with oxygen hetero atoms only or in heading 2941, HTSUS, as antibiotics, or in heading 3824, HTSUS, as chemical products. Whether the Abamectin Technical and the Milbemectin Technical are classified in heading 2932, HTSUS, as heterocyclic compounds with oxygen hetero atoms only or in heading as 3808, HTSUS, as insecticides, or in heading 3824, HTSUS, as chemical products. LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. The HTSUS provisions under consideration in this case are as follows: 2932 Heterocyclic compounds with oxygen hetero-atom(s) only: 2941 Antibiotics: 3808 Insecticides, rodenticides, fungicides, herbicides, antisprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulfur-treated bands, wicks and candles, and flypapers): 3824 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: Note 2 to Section VI, HTSUS, states: Subject to note 1 above, goods classifiable in heading … 3808 by reason of being put up in measured doses or for retail sale are to be classified in those headings and in no other heading of the tariff schedule. Additional U.S. note 2(a) to section VI, HTSUS, defines the term “aromatic” as “applied to any chemical compound refers to such compound containing one or more fused or unfused benzene rings.” Note 1(a) to chapter 29, HTSUS, states as follows: Except where the context otherwise requires, the headings of this chapter apply only to: (a) Separate chemically defined organic compounds, whether or not containing impurities; …. Note 7 to chapter 29, HTSUS, states: Headings 2932, 2933 and 2934 do not include epoxides with a three-membered ring, ketone peroxides, cyclic polymers of aldehydes or of thioaldehydes, anhydrides of polybasic carboxylic acids, cyclic esters of polyhy

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Pursuant to GRI 6, classification at the subheading level uses the same rules, mutatis mutandis, as classification at the heading level. The HTSUS provisions under consideration in this case are as follows:2932 Heterocyclic compounds with oxygen hetero-atom(s) only:2941 Antibiotics:3808 Insecticides, rodenticides, fungicides, herbicides, antisprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulfur-treated bands, wicks and candles, and flypapers):3824 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: Note 2 to Section VI, HTSUS, states:Subject to note 1 above, goods classifiable in heading … 3808 by reason of being put up in measured doses or for retail sale are to be classified in those headings and in no other heading of the tariff schedule. Additional U.S. note 2(a) to section VI, HTSUS, defines the term “aromatic” as “applied to any chemical compound refers to such compound containing one or more fused or unfused benzene rings.” Note 1(a) to chapter 29, HTSUS, states as follows:Except where the context otherwise requires, the headings of this chapter apply only to:(a) Separate chemically defined organic compounds, whether or not containing impurities; …. Note 7 to chapter 29, HTSUS, states:Headings 2932, 2933