Eligibility for duty preference under the U.S.-Canada Free Trade Agreement of an antioxidant/thermal stabilizer; General Notes 3(c)(vii)(A), 3(c)(vii)(B)(1), HTSUSA

HQ 556151 August 15, 1991 CLA-2 CO:R:C:S 556151 SER CATEGORY: Classification TARIFF NO.: 2918.29.5090 Ms. Dorothy Washenko Import Services Manager CIBA-GEIGY Corporation Seven Skyline Drive Hawthorne, NY 10532-188 RE: Eligibility for duty preference under the U.S.-Canada Free Trade Agreement of an antioxidant/thermal stabilizer; General Notes 3(c)(vii)(A), 3(c)(vii)(B)(1), HTSUSA Dear Ms. Washenko: This is in reference to your letter of May 14, 1991, to our New York office, concerning the classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of Irganox 1076 FF, an antioxidant/thermal stabilizer, from Canada. FACTS: CIBA-GEIGY exports "Irganox 1076", which is a U.S.- manufactured antioxidant in powder form, to CIBA-GEIGY Canada to be processed by compaction into granular form, and is returned to the U.S. as "Irganox 1076 FF". Irganox 1076 and Irganox 1076 FF are both composed of Octadecyl 3,5-di-tert-butyl-4- hydrocinnamate, CAS #2082-79-3, and are used interchangeably as an antioxidant and thermal stabilizer in rubber and plastic applications. The compaction process is a mechanical process in which the powder product (Irganox 1076) is converted into a granular form. The powder is fed into a roller compaction unit, which consists of two cooled cylindrical rollers, where it is compressed between the rollers under high pressure into flakes. The flakes are then reduced in size by a flake breaker and then separated to achieve the final desired granular size. The article, now designated as Irganox 1076 FF, is then imported back into the U.S. There is no chemical difference between Irganox 1076 and Irganox 1076 FF. In addition, there is no difference in the commercial application of the two products. -2- ISSUE: Whether the Irganox 1076 FF is eligible for preferential duty treatment under the U.S.- Canada Free Trade Agreement (CFTA). LAW AND ANALYSIS: The implementation of the CFTA is outlined in General Note 3(c)(vii) of the HTSUSA. General Note 3(c)(vii)(A), HTSUSA, provides that "originating goods", as defined in General Note 3(c)(vii)(B), HTSUSA, that are imported into the customs territory of the U.S. and entered under a provision of the HTSUSA for which a rate of duty appears in the "Special" subcolumn followed by the symbol "CA" in parenthesis are eligible for the tariff treatment set forth in the "Special" subcolumn. General Note 3(c)(vii)(B)(1), HTSUSA, provides that goods from Canada are eligible for preferential treatment as "originating goods" if they are goods wholly obtained or produced in the territory of Canada and/or the U.S. In this case, the Irganox 1076 FF would be considered goods wholly produced in the U.S. and Canada, and, therefore, would be considered an "originating good" for CFTA purposes. Irganox 1076 FF, as well as Irganox 1076, is properly classified in subheading 2918.29.5090, HTSUSA, which provides for carboxylic acids: other: other, and is designated as "CA" in the "Special" subcolumn with a rate of duty of "Free". HOLDING: The Irganox 1076 FF, imported from Canada, is properly classified in subheading 2918.29.5090, HTSUSA, which provides for duty-free treatment under the CFTA. As an "originating good", the Irganox 1076 FF is eligible for the preferential duty treatment under this Agreement. Sincerely, John Durant, Director Commercial Rulings Division