N313380

N313380 August 18, 2020 CLA-2-29:OT:RR:NC:N3:140 CATEGORY: Classification TARIFF NO.: 3824.99.9297 Mr. Peter Murphy Candelay Industries LLC 4023 Kennett Pike Greenville, DE 19807 RE: The tariff classification of CBD Distillate in Carrier Oil from Colombia Dear Mr. Murphy: In your letter dated July 10, 2020, you requested a tariff classification ruling on behalf of Candelay Industries LLC. The subject product is called Cannabidiol (CBD) (CAS # 13956-29-1) Distillate. It is stated to be four different mixtures of Cannabidiol (CBD) Distillate (CAS # 13956-29-1) in a carrier oil. The CBD Distillate is a purified extract of Hemp. You indicate that the you are seeking a classification, country of origin, and trade agreement review for these two mixtures. All four products will be imported into the United States from Colombia. You state that the imported products are defined as hemp extracts under the US Agricultural Improvement Act of 2018 ("2018 Farm Bill"). You state that the CBD distillate mixtures are designated for business to business use only, and have been third-party laboratory tested to ensure concentrations of no more than 0.3% of delta-9 tetrahydrocannabinol (THC). These products are indicated to be derived solely from hemp grown in the country of Colombia. Flow charts detailing the manufacturing process and product specifications were provided by the manufacturer and are also attached with your request. The products are for commercial use in the United States as an ingredient in tinctures, creams and cosmetic products. A detailed description of the four products was provided with your request. The description you provided is summarized below. Item Description 1 Cannabidiol (CBD) (CAS #13956-29-1) is described as an extract in medium-chain triglyceride (MCT) carrier oil. The component ingredients based on your description are, by weight 5 percent CBD extract and 95 percent MCT oil. The product contains no more than 0.2 percent delta-9 tetrahydrocannabinol (THC), which you indicate is below the 0.3 percent threshold established by the 2018 Farm Bill. The product also contain minor concentrations (less than 0.006 percent) isomers, notably CBN, as indicated on the Certificate of Analysis (CoA) that you provided. No residual solvents are present, and after extraction and before importation nothing is added to the product. The product comes in thick liquid (oil) form. A manufacturing flow chart was provided by you that detailed the extraction process. The product is packaged in proprietary aluminum bottles used for storage and transportation of sensitive chemicals, fragrances, flavors and food ingredients in sizes ranging from 50 ml to 32,000 ml. Item Description 2 Cannabidiol (CBD) (CAS #13956-29-1) is described as an extract in corn carrier oil. The component ingredients by weight are 10 percent CBD extract and 90 percent corn oil. You state that the product contains no more than 0.2 percent delta-9 tetrahydrocannabinol (THC), which you indicate is below the 0.3 percent threshold established by the 2018 Farm Bill. The product also contain minor concentrations (less than 0.006 percent) isomers of CBD, notably CBN as noted on the Certificate of Analysis (CoA) that you provided. No residual solvents are present and after extraction and before importation nothing is added to the product. The product comes in thick liquid (oil) form. You provided a manufacturing flow chart which detailed the extraction process. The product is packaged in proprietary aluminum bottles used for storage and transportation of sensitive chemicals, fragrances, flavors and food ingredients in sizes ranging from 50 ml to 32,000 ml. Item Description 3 Cannabidiol (CBD) (CAS #13956-29-1) is described as an extract in medium-chain triglyceride (MCT) carrier oil. The component ingredients by weight are 15 percent CBD extract and 85 percent MCT oil. You indicate that the product contains no more than 0.2 percent delta-9 tetrahydrocannabinol (THC), which is below the 0.3 percent threshold established by the 2018 Farm Bill. You indicate that the product also contains minor concentrations (less than 0.006 percent) isomers of CBD, notably CBN as noted on the Certificate of Analysis (CoA) that you provided. No residual solvents are present and after extraction and before importation nothing is added to the product. The product comes in thick liquid (oil) form. A manufacturing flow chart you provided detailed the extraction process. The product is packaged in proprietary aluminum bottles used for storage and transportation of sensitive chemicals, fragrances, flavors and food ingredients in sizes ranging from 50 ml to 32,000 ml. Item Description 4 Cannabidiol (CBD) (CAS #13956-29-1) is described as an extract in medium-chain triglyceride (MCT) carrier oil. You indicate that the component ingredients by weight are 20 percent CBD extract and 80 percent MCT oil. You state that the product contains no more than 0.2 percent delta-9 tetrahydrocannabinol (THC), which is below the 0.3 percent threshold established by the 2018 Farm Bill. The product also contain minor concentrations (less than 0.006 percent) isomers of CBD, notably CBN as noted on the Certificate of Analysis (CoA) that you provided. You indicate that no residual solvents are present and after extraction and before importation nothing is added to the product. The product comes in thick liquid (oil) form. A manufacturing flow chart was provided that detailed the extraction process. The product is packaged in proprietary aluminum bottles used for storage and transportation of sensitive chemicals, fragrances, flavors and food ingredients in sizes ranging from 50 ml to 32,000 ml. Dry and ground plant material is processed using an ultrasonic assisted extraction (UAE) and ethanol (at -60°C ± 10). Then, the mix is filtered and concentrated to obtain the full spectrum extract. This extract is decarboxylated at high temperature to subsequently start the purification process through the molecular distillation and to obtain the distillate oil. Based on the processing flowcharts received with your letter, the concentrated distillate is first extracted. It is then purified in a distillation process. The solvent of choice is then added to dilute to the final concentration “as required”. The solvent is added after the extraction and purification process is completed. This oil has high purity. The percentage of cannabidiol (CBD) is between 80-90%. The oil is used in the preparation of different cannabis derivates products. In HQ H240719 dated September 9, 2016 (regarding purification of an extract.), it was indicated that: Per Note 1(a) and the EN to Chapter 29, a substance is classifiable within Chapter 29 where it is comprised almost entirely by a single molecular structure, so long as any structurally-deviant constituents satisfy the definition of “impurities” as set forth in the EN to Chapter 29. See Degussa Corp. v. United States, 508 F.3d 1044, 1047-48 (Fed. Cir. 2007) (discussing the scope of, and applying, identical language concerning chemical impurities in the EN to Chapter 28); Rhodia, Inc. v. United States, 441 F. Supp. 2d 1368, 1375 n.3 (Ct. Int'l Trade 2006) (“The term ‘chemical compound’ is generally used to refer to ‘a substance composed chemically of two or more elements in definite proportions (as opposed to mixture). Pursuant to Note 1(b) to Chapter 29, headings of the chapter also cover mixtures of isomers of organic compounds, i.e., of organic compounds that are represented by a single chemical formula in diverse structural arrangements, that also may or may not contain such “impurities.” Among other things, “impurities” in a separately defined chemical compound or mixture of isomers cannot have been “deliberately left in the product with a view to rendering it particularly suitable for specific use rather than for general use.” See EN to Chapter 29; and Headquarters Ruling Letter (HQ) 965089, dated January 31, 2002 … Chemic

(CoA) that you provided. No residual solvents are present, and after extraction and before importation nothing is added to the product. The product comes in thick liquid (oil) form. A manufacturing flow chart was provided by you that detailed the extraction process. The product is packaged in proprietary aluminum bottles used for storage and transportation of sensitive chemicals, fragrances, flavors and food ingredients in sizes ranging from 50 ml to 32,000 ml. Item Description 2Cannabidiol (CBD) (CAS #13956-29-1) is described as an extract in corn carrier oil. The component ingredients by weight are 10 percent CBD extract and 90 percent corn oil. You state that the product contains no more than 0.2 percent delta-9 tetrahydrocannabinol (THC), which you indicate is below the 0.3 percent threshold established by the 2018 Farm Bill. The product also contain minor concentrations (less than 0.006 percent) isomers of CBD, notably CBN as noted on the Certificate of Analysis (CoA) that you provided. No residual solvents are present and after extraction and before importation nothing is added to the product. The product comes in thick liquid (oil) form. You provided a manufacturing flow chart which detailed the extraction process. The product is packaged in proprietary aluminum bottles used for storage and transportation of sensitive chemicals, fragrances, flavors and food ingredients in sizes ranging from 50 ml to 32,000 ml. Item Description 3Cannabidiol (CBD) (CAS #13956-29-1) is described as an extract in medium-chain triglyceride (MCT) carrier oil. The component ingredients by weight are 15 percent CBD extract and 85 percent MCT oil. You indicate that the product contains no more than 0.2 percent delta-9 tetrahydrocannabinol (THC), which is below the 0.3 percent threshold established by the 2018 Farm Bill. You indicate that the product also contains minor concentrations (less than 0.006 percent) isomers of CBD, notably CBN as noted on the Certificate of Analysis (CoA) th