The tariff classification of AP24534-Methyl Ester (C-021538/AP25047) as Prototypes under Subheading 9817.85.01 from Switzerland

N167698 June 23, 2011 CLA-2-29:OT:RR:E:NC:2:239 CATEGORY: Classification TARIFF NO.: 2933.99.7900 Mr. Wenwei Liu Ariad Pharmaceuticals, Inc. 26 Landsdowne St. Cambridge, MA 02319 RE: The tariff classification of AP24534-Methyl Ester (C-021538/AP25047) as Prototypes under Subheading 9817.85.01 from Switzerland Dear Mr. Liu: In your letter dated May 23, 2011, you requested a tariff classification ruling on the applicability of subheading 9817.85.01 ("Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes") for AP24534-Methyl Ester (C-021538/AP25047), (Chemical Name – 3-Imidazo[1,2b]pyridazin-3-ylethynyl-4-methylbenzoic acid methyl ester). The imported product will be used as a chemical intermediate in the manufacture of 3-(Imidazo[1,2-b]pyridazin-3-ylethynyl)-4-methyl-N-(4-((4-methylpiperazin-1-yl)methyl)-3-trifluoromethyl) phenyl) benzamide (AP24534 HCl or AP24534), an active pharmaceutical intermediate. This compound will further be formulated into an oral medicine, which is the investigational drug in Phase II clinical trials. The imported chemical, AP24534-Methyl Ester (C-021538/AP25047) will not be sold or otherwise be made commercially available, and immediate shipments will be in quantities of less than twenty kilograms. You state that this is a non-commercial quantity in accordance with industry practice. We do not agree with your claim that the imported compound, AP24534-Methyl Ester (C-021538/AP25047) qualifies for duty-free treatment as a prototype imported for testing under subheading 9817.85.01, Harmonized Tariff Schedule of the United States (HTSUS). United States (U.S.) Customs and Border Protection determinations are based on the "condition as imported". AP24534-Methyl Ester (C-021538/AP25047), in its condition as imported, is not intended for testing in the U.S. It is undergoing more than the purposes specified in subheading 9817.85.01, wherein the article entered as a prototype must be used "exclusively for development, testing, product evaluation, or quality control purposes." As stated in your inquiry, the imported product is further transformed into a completely new chemical substance. Therefore, it cannot qualify as a prototype under subheading 9817.85.01, HTSUS. The applicable subheading for AP24534-Methyl Ester (C-021538/AP25047) will be 2933.99.7900, HTSUS, which provides for "Heterocyclic compounds with nitrogen hetero-atom(s) only: Other: Other: Aromatic or modified aromatic: Other: Other: Products described in additional U.S. note 3 to section VI." 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/. 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 Richard Dunkel at 646-733-3032. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division