Alkylketene Dimer Wax

HQ 962806 August 17, 1999 CLA-2 RR:CR:GC 962806 MGM CATEGORY: Classification TARIFF NO.: 3404.90.50 Kathleen M. Murphy, Esq. Katten Muchin & Zavis 525 West Monroe St. Suite 1600 Chicago, IL 60661-3693 RE: Alkylketene Dimer Wax Dear Ms. Murphy: This is in response to your letter of October 23, 1997, to Customs National Commodity Specialists Division in New York, in which you request, on behalf of Eka Chemicals, Inc., a binding ruling under the Harmonized Tariff Schedule of the United States (HTSUS) on the classification of alkylketene dimer wax. Your letter was referred to this office for reply. We regret the delay. FACTS: According to Customs Laboratory Report 2-98-30036, dated October 20, 1997, alkylketene dimer wax is an off-white or light brown waxy solid. It is prepared from long chain fatty acids and used as an ingredient in the production of compounds useful in imparting water repellency to various items. ISSUE: Is alkylketene dimer wax an artificial or prepared wax of heading 3404, HTSUS? LAW AND ANALYSIS: Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all purposes. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in their appropriate order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the GRIs. Heading 3809 provides as follows: Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included. Because heading 3809, HTSUS, provides only for merchandise “not elsewhere specified or included,” alkylketene dimer wax is not properly classified in heading 3809 if it is encompassed within any other heading. Heading 3404, HTSUS, provides for “[a]rtificial waxes and prepared waxes.” This heading includes “[c]hemically produced organic products of a waxy character, whether or not water-soluble.” Note 5 (a), Chapter 34, HTSUS. Alkylketene dimer wax is chemically produced from fatty acids, is organic (carbon-based), and has a waxy character, therefore it falls within heading 3404, HTSUS. Within heading 3404, HTSUS, are three six-digit subheadings: “Of chemically modified lignite,” “Of polyethylene glycol,” and “Other.” Lignite is a “low rank of coal between peat and subbituminous.” Hawley, The Condensed Chemical Dictionary, 10th edition. Alkylketene dimer wax is not a coal derivative and thus is not of chemically modified lignite. Nor is the merchandise of polyethylene glycol. Polyethylene glycol is a polyether derived from condensation of ethylene glycol, or of ethylene oxide and water, while Alkylketene dimer wax is not an ether and is derived from fatty acids. Thus, the merchandise falls within the residual or “Other” provision. Within this provision are provisions for waxes containing bleached beeswax, and “Other.” As alkylketene dimer wax does not contain bleached beeswax, it is properly classified in the “Other” provision. HOLDING: Alkylketene dimer wax is a prepared wax classified in subheading 3404.90.50, HTSUS. Sincerely, John Durant, Director Commercial Rulings Division