United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2000 HQ Rulings > HQ 963707 - HQ 964051 > HQ 963708

Previous Ruling Next Ruling
HQ 963708





October 17, 2000

CLA-2 RR:CR:GC 963708ptl

CATEGORY: CLASSIFICATION

TARIFF NO.: 3824.90.2800

Ms. Joan M. Stiefel
Stiefel Laboratories, Inc.
P.O. Box 10855
Rockville, MD 20849-0855

RE.: "KOPIX"; NY 805283 revoked.

Dear Ms. Stiefel:

In NY 805283, issued to you on February 23, 1995, by the Director, Customs National Commodity Specialist Division, New York, a product identified as "KOPIX", which would be imported in bulk form, was classified under the Harmonized Tariff Schedule of the United States (HTSUS), in subheading 3003.90.0000, HTSUS, which provides for Medicaments consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale: other. We have reconsidered that ruling and determined that the classification was incorrect. The correct classification for the articles is in subheading 3824.90.2800, HTSUS, pursuant to the analysis set forth below.

Pursuant to section 625(c), Tariff Act of 1930, as amended (19 U.S.C. 1625(c)), notice of the proposed revocation of NY 805283 was published on September 13, 2000, in the Customs Bulletin, Volume 34, Number 37. No comments were received.

FACTS:

The merchandise identified as "KOPIX" in NY 805283, is a proprietary mixture of a peanut oil extract and a crude coal tar extract. The oily yellowish
brown liquid is to be imported in bulk and will be used as a raw material in the manufacture of a shampoo for dry scalp.

ISSUE:

What is the classification of the product "KOPIX"?

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS is such that virtually all goods are classified by application of GRI 1, that is, 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 may then be applied.

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes (ENs), although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).

The HTSUS headings under consideration are as follows:

3003 Medicaments (excluding goods of heading 3002, 3005 or 3006) consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses, not put up in measured doses or in forms or packings for retail sale:

3003.90.0000 Other

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; residual products of the chemical or allied industries, not elsewhere specified or included:

3824.90 Other

Other

3824.90.2800 Other.

The article being classified is a specially formulated raw material which is to be used in the manufacture of a shampoo. When NY 805283 was issued, Customs was interpreting the provisions of the HTSUS in such a way that shampoos which were claimed to provide some medical benefit were classified as medicaments in Chapter 30. Because the "KOPIX" was an active ingredient of the shampoo, it was classified in that chapter also.

However, Customs now believes that by applying the GRIs as instructed, and referring to the terms of the headings, shampoos are classified in subheading 3305.10, HTSUS. This classification is reinforced by the language of the ENs to heading 33.05 which state:

This heading covers:
(1) Shampoos containing soap or other organic surface-active agents (see Note 1 (c) to Chapter 34), and other shampoos. All these shampoos may contain subsidiary pharmaceutical or disinfectant constituents, even if they have therapeutic or prophylactic properties (see Note 1(d) to Chapter 30).

Note 1(d) to Chapter 30 states that "This Chapter [Pharmaceutical Products] does not cover (d) Preparations of headings 3303 to 3307, even if they have therapeutic or prophylactic properties."

Since "KOPIX" is imported in bulk, as an ingredient, it is not classifiable as a shampoo. By virtue of GRI 1, based upon its formulation, "KOPIX" is properly classified in subheading 3824.90.2800, HTSUS, because it is a mixture containing 5 percent or more by weight of one or more aromatic or modified aromatic substances.

HOLDING:

"KOPIX" imported in bulk form, is classified in subheading 3824.90.2800, HTSUS, which provides for [p]repared 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: [o]ther: [o]ther.

NY 805283, issued February 23, 1995, is revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.

Sincerely,


Previous Ruling Next Ruling

See also: