HQ 0088339 - Classification of Laidlomycin Propionate Potassium Salt - United States International Trade Commision Rulings

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HQ 088339

April 2, 1991

CLA-2 CO:R:C:F 088339 EAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 3823.90.5050

Lawrence A. Kirkham, Director
International Trade
Syntex Corporation
3401 Hillview Avenue
Palo Alto, California 94303

RE: Classification of Laidlomycin Propionate Potassium Salt

Dear Mr. Kirkham:

This is in reply to your letter dated November 27, 1990, in which you request a binding ruling on the tariff classification of laidlomycin propionate potassium salt under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). No sample was submitted; however, attached to your submission was a structural diagram of the molecule.

FACTS:

Laidlomycin propionate potassium salt will be manufactured in Italy and imported into the U.S. for further processing.

Laidlomycin is a fermentation product which results in a mixture of two esters, propionyl and butyryl. The propionate is the propionyl ester of the hydroxy group on C-26. The potassium salts are the derivatives produced from the laidlomycin, which itself may be characterized as an antibiotic. The subject salt is an accelerated growth hormone, to be used in cattle feed as an additive.

ISSUE:

Classification of laidlomycin propionate potassium salt under the HTSUS.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) set forth the legal framework in which merchandise is to be classified under the HTSUSA. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff and any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's taken in order.

As provided in Note 1(a) to Chapter 29 of the schedule, only separate chemically defined organic compounds are to be classified therein. Since the subject compound is a combination of two distinct esters, classification must be established elsewhere than in Chapter 29.

Heading 3823 provides, in part, for residual products of the chemical or allied industries, not elsewhere specified or included. The Explanatory Notes to this heading in Note (C)(2) advise that residues from the manufacture of antibiotics (called "cakes"), with a very low antibiotic content, suitable for use for the preparation of compound animal feeds are among such "residual products."

It is apparent that the subject organic chemical compound is described by the terms of heading 3823 and properly classified under this heading.

HOLDING:

Laidlomycin propionate potassium salt is properly classified under subheading 3823.90.5050, HTSUS, which provides for residual products of the chemical or allied industries, not elsewhere specified or included, other, other, other, other. Merchandise classified under this subheading is subject to a five percent (5%) ad valorem rate of duty.

Sincerely,

John Durant, Director

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