Revocation of NYRL 871563 concerning the tariffclassification of moxidectin technical concentrate (CAS# 113507-06-5)

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. - 2 - 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."  - 3 - 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 Tariff Classification Appeals Division  CLA-2 RR:TC:FC 956889 ASM U.S. CUSTOMS SERVICE GENERAL NOTICE 19 CFR PART 177 REVOCATION OF CUSTOMS RULING LETTER RELATING TO TARIFF CLASSIFICATION OF MOXIDECTIN AGENCY: U. S. Customs Service, Department of Treasury ACTION: Notice of proposed revocation of tariff classification ruling letter. SUMMARY: 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 (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), this notice advises interested parties that Customs is revoking a ruling pertaining to the tariff classification of moxidectin technical concentrate (CAS# 113507-06-05). Notice of the proposed revocation was published on November 22, 1995, in the Customs Bulletin. EFFECTIVE DATE: Merchandise entered or withdrawn from warehouse for consumption on or after (60 days after publication in the Customs Bulletin). FOR FURTHER INFORMATION CONTACT: Ann Segura Minardi, Food and Chemicals Classification Branch, (202-482-6958). SUPPLEMENTARY INFORMATION: Background On November 22, 1995, Customs published a notice in the Customs Bulletin, Volume 29, Number 47, proposing to revoke New York Ruling Letter (NYRL) 871563, dated March 20, 1992, which classified the merchandise, Moxidectin technical concentrate (CAS # 113507-06-5), 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. No comments were received in response to this notice. - 2 - 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 (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), this notice advises interested parties that Customs is revoking NYRL 871563 to reflect the proper classification of Moxidectin 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. Moxidectin is comprised of a heterocyclic compound with more than one functional group in the structure. Headquarters Ruling Letter (HRL) 956889 revoking NYRL 871563, is set forth in the Attachment to this document. 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)). John Durant, Director Tariff Classification Appeals Division Dated: