HQ 0081405 - Tariff classification of two sugar and chemical mixtures - United States International Trade Commision Rulings

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HQ 081405

January 10, 1990

CLA-2 CO:R:C:G 081405 LS

CATEGORY: CLASSIFICATION

TARIFF NO.: 1701.11 or 1701.12

Mr. Robert F. Lynch
H.B. Fuller Company
801 Wagner Street
Baltimore, Maryland 21224

RE: Tariff classification of two sugar and chemical mixtures

Dear Mr. Lynch:

Your inquiry, dated September 29, 1987, addressed to our New York office concerning the tariff classification of two sugar and chemical mixtures, one with magnesium sulfate and the other with magnesium sulfate and 135 gram bone glue, was referred to this office for a direct reply to you.

FACTS:

The breakdown of the components of the two sugar mixtures is as follows: Sample A, 90 percent raw sugar and 10 percent magnesium sulfate (epsom salt); and Sample B, 80 percent raw sugar, 10 percent magnesium sulfate (epsom salt), and 10 percent 135 gram bone glue. You state that the mixtures will be utilized along with other ingredients to compound and manufacture industrial adhesives, specifically book binding adhesives. Since you state that additional bone glue and magnesium sulfate could be added to the final product, the proportions of sugar to the other chemicals could change in the final product. You further state that the ingredients are not commercially separable and that you will not attempt to separate them. You have also informed us that the products will only be used in manufacturing inedible industrial adhesives and will not be used in foods or beverages.

ISSUE:

What are the applicable tariff classification provisions under the Harmonized Tariff Schedules of the United States Annotated (HTSUSA) for the subject products?

LAW AND ANALYSIS:

General Rule of Interpretation (GRI) 1 of the HTSUSA provides that classification is determined first in accordance with the terms of the headings and any relative section or chapter notes. Since there are no headings or subheadings which provide for these mixtures used as intermediates in the manufacture of adhesives, we apply GRI 2(b). GRI 2(b) states that the classification of goods consisting of more than one material or substance shall be according to the principles of GRI 3. GRI 3(a) provides that when two or more headings each refer to part only of the substances contained in a mixture, these headings are to be regarded as equally specific in relation to the mixture, even if one of them gives a more complete or precise description of the mixture. GRI 3(b) provides:

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

Explanatory Note (VIII) to Rule 3(b) provides that the essential character may be determined by "the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods."

The sugar, which makes up 90 percent by weight of the first mixture, and 80 percent by weight of the second mixture, is the ingredient which gives these intermediate products their essential character. The essential character of these two products is determined by the ingredient with the greatest weight, which in both products is the sugar. Therefore, both products are classifiable in subheading 1701.11, if the sugar is derived from the juices of the sugar cane stalk, or subheading 1701.12, if the sugar is derived from the juices obtained by extraction from the root of the sugar beet. We are not able to determine the essential character based upon the role of the constituent materials in relation to the use of the products since we have not been provided with sufficient
information as to the properties of these intermediate products which are used to make industrial adhesives. You have only informed us that the products do not have adhesive properties.

HOLDING:

The two mixtures which are the subject of this ruling request are classifiable in subheading 1701.11, if the sugar is derived from the juices of the sugar cane stalk, or subheading 1701.12, if the sugar is derived from the juices obtained by extraction from the root of the sugar beet. Under both subheadings the mixtures are subject to quota. See Additional U.S. Note 3 to Chapter 17, HTSUSA. The mixtures are also subject to import fees imposed pursuant to section 22 of the Agricultural Adjustment Act, as amended (7 U.S.C. 624), provided that the raw sugar component will not be further refined or improved in quality. See subheading 9904.40.20, HTSUSA. These fees, which are imposed in addition to the rates of duty, are 2.2 cents per kilogram, but not to exceed 50 percent ad valorem.

Sincerely,

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