HQ 956889 - Revocation of NYRL 871563 concerning the tariff classification of moxidectin technical concentrate (CAS# 113507-06-5) - United States International Trade Commision Rulings

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January 2, 1996

HQ 956889

CLA-2 RR:TC:FC 956889 ASM

CATEGORY: CLASSIFICATION

TARIFF NO.: 2932.29.5050

Ms. Mariana Davidovich
Manager Commercial Affairs
Cyanamid
Latin American Group
Government & Commercial Affairs
One Cyanamid Plaza
Wayne, NJ 07470

RE: Revocation of NYRL 871563 concerning the tariff classification of moxidectin technical concentrate (CAS# 113507-06-5)

Dear Ms Davidovich:

This letter concerns the revocation of New York Ruling Letter (NYRL) 871563, dated March 20, 1992, regarding the classification of moxidectin technical concentrate (CAS# 113507-06-5). Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), as amended by section 623 of title VI (Customs Modernization) of the North American Free Trade Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993) (hereinafter section 625), notice of the proposed revocation of NYRL 871563, was published on November 22, 1995, in the Customs Bulletin, Volume 29, Number 47.

FACTS:

The subject product is identified as moxidectin technical concentrate and is imported from Argentina to be used as an anti-parasitic drug. In NYRL 871563, the merchandise was classified within subheading 2932.90.5000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for heterocyclic compounds with oxygen hetero-atom(s) only, dutiable at 3.7 percent ad valorem.

At this time, your company is asserting that, based upon a decision rendered by the Harmonized System Committee, the subject product is, in fact, properly classifiable within subheading 2932.29.2000, HTSUSA, which provides for lactones: other lactones: aromatic: drugs, dutiable at 7.2 percent ad valorem.

ISSUE:

What is the proper classification under the HTSUSA for moxidectin technical concentrate (CAS# 113507-06-5)?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUSA is made in accordance with the General Rules of Interpretation (GRI's). As stated in GRI 1, the classification is determined first in accordance with the terms of the headings which must be read in conjunction with the relative section and chapter notes. If GRI 1 fails to classify the goods and if the headings and legal notes do not otherwise require, the remaining GRI's are applied in their appropriate order. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN's), facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's.

Moxidectin is comprised of a heterocyclic compound with more than one functional group in the structure. As such, we have determined that the product is properly classifiable under heading 2932, HTSUSA, which provides for "Heterocyclic compounds with oxygen hetero-atom(s) only." We further recognize the recommendations of the Harmonized System Committee in classifying moxidectin under subheading 2932.29, HTSUSA, as a lactone. However, we do not agree with Cyanamid's claim that the product is properly classifiable within subheading 2932.29.2000, HTSUSA, as an aromatic lactone.

According to Additional U.S. Note 2(a) to Section VI, HTSUSA, for the purposes of the tariff schedule, the term "aromatic" refers to chemical compounds containing one or more fused or unfused benzene rings. As evidenced by its chemical structure, moxidectin does not contain any fused or unfused benzene ring(s). Therefore, pursuant to Additional Note 2(a) to Section VI, HTSUSA, the subject product is not an "aromatic" compound for tariff purposes. Thus, it is our determination that moxidectin is properly classifiable in subheading 2932.29.5050, HTSUSA, which provides for "... Lactones: Other lactones: Other, Other."

HOLDING:

The product, moxidectin, is properly classified under subheading 2932.29.5050, HTSUSA which provides for "Heterocyclic compounds with oxygen hetero-atom(s) only: Lactones: Other lactones: Other, Other" which is dutiable under the general column one rate of 3.7 percent ad valorem.

Articles classifiable under subheading 2932.29.5050, HTSUSA, which are products of Argentina, are entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations.

NYRL 871563, dated March 20, 1992, is hereby revoked. In accordance with section 625, this ruling will become effective 60 days after its publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625 does not constitute a change of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).

Sincerely,

John Durant, Director

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