The tariff classification of Continuous Ambulatory Peritoneal Dialysis solution, tubing and drainage bag from the United States.

N231918 September 21, 2012 CLA-2-90:OT:RR:NC:N4:405 CATEGORY: Classification TARIFF NO.: 9018.90.8000 Alex Kuperman Director, Global Trade Baxter Healthcare Corporation One Baxter Parkway Deerfield, IL 60015 RE:      The tariff classification of Continuous Ambulatory Peritoneal Dialysis solution, tubing and drainage bag from the United States. Dear Mr. Kuperman: In your letter dated August 20, 2012 you requested a tariff classification ruling.  A sample was provided.  The largest item in the sample is a plastic bag containing 3 liters, about 3.2 quarts, of Peritoneal Dialysis solution.  It has several feet of plastic tubing which is attached to a Y connector which, via intermediary tubing and connectors, will connect to a port into the patient’s peritoneal cavity.  The port would have been surgically implanted and allowed to heal before use.  The other end of the “Y” is connected to several feet of similar plastic tubing which is connected to an empty plastic bag, a drain bag, of similar dimensions, about 14 inches by 9 inches.  In use, the solution bag will be suspended by a hook and the solution will flow through the tubing (and the additional tubing, connectors and the port, all not part of the import) into the patient’s peritoneal cavity and remain there for the required hours.  The “used” fluid, which has drawn into it the types of substances removed from the blood by the kidneys for urination, will then be allowed to flow down into the drain bag.  The filled drain bag, the empty solution bag, and the two tubes plus Y connector, will then be disposed of.  As indicated in www.princeton.edu/~ota/disk2/1985/8531/853104.PDF, continuous ambulatory peritoneal dialysis (CAPD) is solely used at home, not in a hospital or a treatment center, for those whose kidneys have failed. The patient will typically use multiple bags of solution per day. Per the sample, the solution pre-dominates the import by bulk and weight.  However, while an importation of bags of the Peritoneal Dialysis solution would be classified in HTSUS heading 3004, we do not consider the solution to provide the essential character to the import in terms of HTSUS General Rule of Interpretation 3.  New York Ruling Letter 873038, dated April 24, 1992, classified a Peritoneal Dialysis Tubing Assembly in HTSUS 9018.90.80.  That was quite similar to this item without the 3 liter bag of fresh Peritoneal Dialysis solution so we find HTSUS 9018.90.80 to be the applicable classification via GRI 3-c.  We agree that the applicable subheading for the UltraBag Solution Delivery System will be 9018.90.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other" instruments and apparatus used in medical, surgical, or veterinary sciences, and parts and accessories thereof. Regarding your proposed secondary classification under HTSUS 9817.00.96, Headquarters Ruling Letter 964676, dated January 7, 2002, found it to apply to other items used in dialysis.  On that basis, we agree that a secondary classification will apply in HTSUS 9817.00.96 as specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped (except articles for the blind).   Note that the requirement that you prepare and file a U.S. Department of Commerce form ITA-362P has been eliminated via a notice from the International Trade Administration, published in the Federal Register of June 1, 2010.  This merchandise is already duty free, but if you elect to claim the secondary classification in Chapter 98 of 9817.00.96 and meet the entry requirements, no merchandise processing fee will apply to those importations even if they are non-NAFTA, noting, e.g., Headquarters Ruling Letter 229110 IDL, 8-29-02.  Also note that this classification has no effect on any quota, visa, or restricted merchandise requirements or any dumping or countervailing duties.                          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 J. Sheridan at (646) 733-3012. Sincerely, Thomas J. Russo Director National Commodity Specialist Division