Revocation of HQ 968018 and NY L85332; classification of “Bitrex, 25% in Propylene Glycol”

HQ H072379 July 7, 2014 CLA-2 OT:RR:CTF:TCM H072379 ARM CATEGORY: Classification TARIFF NO.: 3824.90.28 Mr. Mitchell J. Tracy Market Actives, LLC 8300 SW 71st Avenue Portland, OR 97223 Re: Revocation of HQ 968018 and NY L85332; classification of “Bitrex, 25% in Propylene Glycol” Dear Mr. Tracy: This is in reference to Headquarters ruling letter (HQ) 968018, dated January 9, 2006, which affirmed the holding in New York (NY) ruling letter L85332, dated June 24, 2005, issued to you, concerning the classification, of a product identified as “Bitrex, 25% in Propylene Glycol.” NY L85332 and HQ 968018 held that Bitrex, 25% in Propylene Glycol is classified, under the Harmonized Tariff Schedule of the United States (HTSUS), in subheading 3824.90.91, HTSUS, the provision 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: Other: Other: Other, Other.” We have reviewed these rulings and find them to be in error. This ruling revokes HQ 968018 and NY L85332. 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), ), a notice was published in the CUSTOMS BULLETIN, Volume 47, No. 10, on February 27, 2013, proposing to revoke NY L85332 and HQ 968018, and any treatment accorded to substantially identical transactions. No comments were received in response to this notice. FACTS: In NY L85332, U.S. Customs and Border Protection (“CBP”) classified a solution composed of 25% Bitrex (C.A.S. number 3734-33-6) and 75% propylene glycol (C.A.S. number 57-55-6) in subheading 3824.90.91, 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: Other: Other: Other.” In HQ 968018, CBP affirmed its previous decision that the product is a mixture of heading 3824, HTSUS, and not a separate chemically defined amide function compound of heading 2924, HTSUS. “Bitrex” is the brand name for denatonium benzoate, the bitterest compound known. See www.bitrex.com. Bitrex is an aromatic, cyclic amide indicated for use as a denaturant and bittering agent. ISSUE: What is the classification of Bitrex, 25% in Propylene Glycol? LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides, in part, that classification decisions are to be "determined according to the terms of the headings and any relative section or chapter notes." If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied, in order. The HTSUS provisions under consideration are as follows: 3824 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: 3824.90 Other: Other: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances: 3824.90.28 Other. * * * * * Other: Other: 3824.90.92 Other. Additional U.S. note 2(a) to section VI, which covers heading 3824, HTSUS, states the following: 2. For the purposes of the tariff schedule: (a) The term "aromatic" as applied to any chemical compound refers to such compound containing one or more fused or unfused benzene rings; In HQ 968018, we discussed the correct classification of the instant solution, under GRI 1, in heading 3824, HTSUS, as a chemical preparation, rather than in your preferred heading, 2924, HTSUS, as an amide-function compound of carbonic acid. As such, we will not address the classification at the heading level herein. Rather, the issue here is the correct eight-digit level national tariff rate applicable to the Bitrix solution. The Bitrix solution contains 25% denatonium benzoate in 75% propylene glycol. Therefore, the solution contains more than 5% of an aromatic substance and is classified as such in subheading 3824.90.28, HTSUS, under GRI 6. HOLDING: By application of GRI 1 and 6, “Bitrex, 25% in Propylene Glycol” is classified in heading 3824, HTSUS. It is provided for in subheading 3824.90.28, 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: Other: Other: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances: Other.” The applicable column one, general duty rate under the 2009 HTSUS is 6.5% 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 the world wide web at www.usitc.gov. EFFECT ON OTHER RULINGS: HQ 968018, dated January 9, 2006, and NY L85332, dated June 24, 2005, are revoked. In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after publication in the CUSTOMS BULLETIN. Sincerely, Myles B. Harmon, Director Commercial Trade and Facilitation Division