The tariff classification and Trade Program Eligibility of Sharomix ME 15 and Sharomix DMP from Israel

N239553 April 1, 2013 CLA-2-38:OT:RR:NC:2:235 CATEGORY: Classification TARIFF NO.: 3824.90.2800 Mr. John K. Greenlee John A. Steer Co. 28 S. 2nd Street Philadelphia, PA 19106 RE: The tariff classification and Trade Program Eligibility of Sharomix ME 15 and Sharomix DMP from Israel Dear Mr. Greenlee: In your letter dated March 13, 2013 you requested a tariff classification ruling on behalf of Acme-Hardesty Co. The first product is called Sharomix ME 15. It is a mixture of Methylparaben, Ethylparaben, and 2-phenoxyethanol. You state that these products are to be used as preservatives and antimicrobial agents in personal care products such as shampoo, conditioner, and hand creams. The second product is called Sharomix DMP. Its composition consists of methylparaben, propylparaben, diazolidinyl urea and propylene glycol. You state that these products are to be used as preservatives and antimicrobial agents in personal care products such as shampoo, conditioner, and hand cream among others. The applicable subheading for the Sharomix ME 15 and the Sharomix DMP will be 3824.90.2800, Harmonized Tariff Schedule of the United States (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”. The rate of duty will be 6.5 percent 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 World Wide Web at http://www.usitc.gov/tata/hts/. Your letter also requests for a determination on your products eligibility for the U.S.-Israel Free Trade Agreement. Under the U.S.-Israel FTA, eligible articles the growth, product, or manufacture of Israel which are imported directly to the U.S. from Israel qualify for duty-free treatment, provided the sum of 1) the cost or value of materials produced in Israel, plus 2) the direct costs of processing operations performed in Israel is not less than 35 percent of the appraised value of the article at the time it is entered. See General Note 8(b), HTSUS. You indicate that the “All component parts are sourced and made in Israel”. Articles classifiable under subheadings 3824.90.2800, HTS, which are products of Israel, are entitled to duty-free treatment, under the United States-Israel Free Trade Area Implementation Act of 1985 ("IL"), upon compliance with all applicable regulations. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Paul Hodgkiss at (646) 733-3046. Sincerely, Thomas J. Russo Director National Commodity Specialist Division