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HQ H003890





June 27, 2007

CLA–2 RR:CTF:TCM H003890 KSH

TARIFF NO.: 2932.99.6100

Barry Cohen, Esq.
Crowell & Moring LLP
1001 Pennsylvania Avenue N.W.
Washington, D.C. 20004

RE: Revocation of New York Ruling Letter (NY) R03248, dated May 18, 2006; Classification of MILLAD® 3988i.

Dear Mr. Cohen:

This is in response to your letter of June 16, 2006, on behalf of your client Milliken Chemical, in which you request reconsideration of New York Ruling Letter (NY) R03248, issued on May 18, 2006, concerning the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of MILLAD® 3988i. The MILLAD® 3988i was classified in subheading 3824.90.2800, HTSUS, which provides for “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: Other: Other: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances: Other.”

You have provided additional information not included with the original ruling request to support the assertion that the silicon dioxide present in the product is for anti-caking purposes. Thus, you maintain that the MILLAD® 3988i should be classified in subheading 2932.99.6100, HTSUS, which provides for ‘‘Heterocyclic compounds with oxygen hetero-atom(s) only: Other: Other: Aromatic: Other: Products described in additional U.S. note 3 to section VI .’’ In accordance with your request for reconsideration of NY R03248, CBP has reviewed the classification of this item and has determined that the cited ruling is in error.

Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed action was published on April 25, 2007, in Volume 41, Number 18, of the CUSTOMS BULLETIN. CBP received no comments in response to the notice.

FACTS:

The merchandise at issue is identified as MILLAD® 3988i. It is used as a clarifying agent for polyolefin plastics. The MILLAD® 3988i is composed of 96-98% D-Glucitol, 1,3:2,4-bis-o-[(3,4-dimethylphenyl) methylene]- (CAS 135861-56-2) and 2-4% silated silicon dioxide.

ISSUE:

Whether the MILLAD® 3988i is classified as a chemical product or preparation of the chemical or allied industries of heading 3824, HTSUS, or as a separate chemically defined organic compound of heading 2932, HTSUS.

LAW AND ANALYSIS:

Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined 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 GRI may then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN), constitute the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the EN provide a commentary on the scope of each heading of the HTSUSA and are generally indicative of the proper interpretation of the headings.

In accordance with Note 1 to Chapter 38, HTSUS, MILLAD® 3988i cannot be classified in Chapter 38, HTSUS, if it is determined to be a separate chemically defined compound. Note 1 to Chapter 38, HTSUS, provides in relevant part:

1. This chapter does not cover:

Separate chemically defined elements or compounds with the exception

Millad does not fall within any of the exceptions. of the following:

Note 1 to Chapter 29, HTSUS, provides in relevant part:

1. Except where the context otherwise requires, the headings of this chapter apply only to:

(a) Separate chemically defined organic compounds, whether or not containing impurities;

(f) The products mentioned in (a), (b), (c), (d) or (e) above with an added stabilizer (including an anticaking agent) necessary for their preservation or transport;

MILLAD® 3988i will be classified in Chapter 29, HTSUS, only if the silicon dioxide is present as a stabilizer necessary for its preservation or transport. In NY R03248, we determined that silicon dioxide is applied in the polymer industry for several applications, including as a slip and block agent in the formulation of polyolefins. As an additive for a specific use rather than a general use, we concluded that Note 1(f) to Chapter 29, HTSUS, precluded MILLAD® 3988i from classification in Chapter 29, HTSUS.

You have now provided information that silicon dioxide which is used as a slip and block agent in polyolefins is present in amounts of 0.1 to 0.4 percent by weight of the polyolefin product. The MILLAD® 3988i only comprises 0.2 percent by weight of the final polyolefin product and therefore the silicon dioxide comprises no more than 0.008 percent of the final product. Thus, it cannot be used for slip and anti-block purposes.

We have confirmed in New York Laboratory Report NY20061573, dated November 6, 2006, that the silicon dioxide present in MILLAD® 3988i is insufficient for use as a slip and anti-block agent. Further, the silicon dioxide is present for anti-caking purposes. Accordingly, MILLAD® 3988i is classified in heading 2932, HTSUS.

HOLDING:

The MILLAD® 3988i is classified in heading 2932, HTSUS. It is provided for in subheading 2932.99.6100, HTSUS, which provides for “Heterocyclic compounds with oxygen hetero-atom(s) only: Other: Other: Aromatic: Other: Products described in additional U.S. note 3 to section VI.’’ The general column one rate of duty is 6.5% ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov.

EFFECT ON OTHER RULINGS:

NY R03248, dated May 18, 2006, is hereby 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,

Myles B. Harmon, Director
Commercial and Trade Facilitation Division

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