Modification of New York Ruling Letter 826155; Sugar pellets

HQ 086319 May 22, 1990 CLA-2:CO:R:C:G 086319 CATEGORY: Classification TARIFF NO.: 1701.99 Mr. Mark T. Land Boiron Borneman 1208 Amosland Road Norwood, PA 19074 RE: Modification of New York Ruling Letter 826155; Sugar pellets Dear Mr. Land: In New York Ruling Letter (NYRL) 826155, dated December 18, 1987, you received a ruling on the classification of sugar pellets, also described as "homeopathic globules". In that ruling the products at issue were classified in subheading 2106.90.50, of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for food preparations not elsewhere specified or included: other: subject to quotas established pursuant to Section 22 of the Agricultural Adjustment Act, as amended. Pursuant to 177.9 of the Customs Regulations (19 C.F.R. 177.9), we are modifying NYRL 826155. FACTS: The sugar pellets consist os white spheres, approximately 1/8 inch in diameter and are comprised of 85 percent sucrose and 15 percent lactose. They were stated to be imported in 30 kilogram cartons, and to be used as a vehicle for oral pharmaceutical preparations. ISSUE: What is the correct classification for the sugar pellets? LAW AND ANALYSIS: Modification Our regulations allow for the modification or revocation of ruling letters. As stated in 19 C.F.R. 177.9(d)(1), "(a)ny ruling letter found to be . . . not in accordance with the current views of the Customs Service may be modified or revoked. Modification or revocation shall be effected by Customs Headquarters by giving notice to the person to whom the ruling n -2- letter was addressed . . . ." As provided in 177.9(d)(2), "(t)he modification or revocation of a ruling letter will not be applied retroactively with respect to the person to whom the ruling was issued, or to any person directly involved in the transaction to which that ruling related . . . ." Classification Classification of goods under the HTSUSA is governed by the General Rules of Interpretation (GRI's), taken in order. When goods are prima facie classifiable under two or more headings GRI 3 is applicable. In this case classification is determined by application of GRI 3(b) which provides in pertinent part: Mixtures . . . shall be classified as if they consisted of the material which gives them their essential character. In general, essential character has been construed to mean the attribute which strongly marks or serves to distinguish what an article is; that which is indispensable to the structure, core or condition of the article. In addition, the Explanatory Notes provide further factors which help determine the essential character of goods. Factors such as bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods are to be utilized, though the importance of certain factors will vary between different kinds of goods. The sucrose, which constitutes the primary ingredient of the sugar pellets, would impart the essential character for the product at issue. Though the product will be used, subsequent to importation, as a carrier for pharmaceuticals, "(i)t is well settled that, . . ., imported merchandise must be classified with reference to its condition when imported." United States v. Citroen, 223 U.S. 407, 32 S.Ct. 256, 56 L. Ed. 486 (1911). "Condition as imported refers to the condition of the goods when they are brought within the jurisdiction of the United States with intent to unlade." The Sherwin-Williams Co. V. United States, 38 CCPA 13, 18, C.A.D. 432 (1950). Therefore the heading for sugars would be the proper classification for the product at issue. -3- HOLDING: The product at issue, sugar pellets, is properly classified in subheading 1701.99.00, HTSUSA, which provides for cane or beet sugar and chemically pure sucrose, in solid form: other: other. Under this subheading the merchandise is subject to the quota and fees provided in additional U.S. Note 3 to Chapter 17, HTSUSA. The rate of duty is 1.4606 cents per kilogram, less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 0.943854 cents per kilogram. NYRL 826155, is hereby modified pursuant to 177.9 of the Customs Regulations. Sincerely, John Durant, Director