The tariff classification of Pergafast 201 from China

N333617 June 29, 2023 CLA-2-37:OT:RR:NC:N3 135 CATEGORY: Classification TARIFF NO.: 2935.90.7500; 3707.90.6000; 9903.88.03 John Peterson Neville Peterson LLP One Exchange Plaza 55 Broadway, Suite 2602 New York, NY 10006 RE:  The tariff classification of Pergafast 201 from China Dear Mr. Peterson: In your letter dated June 8, 2023, you requested a tariff classification ruling on behalf of Inabata American Corporation. Pergafast 201 is an organic chemical compound, said to be used as a color developer for thermal papers.  Its chemical name is identified as 3-{[(4-methylbenzenesulfonyl) carbamoyl] amino} phenyl 4-methylbenzene-1-sulfonate (CAS # 232938-43-1).  It is a key component of a thermally reactive layer on top of a base paper.  The other components (not subject to this ruling) include color formers (which are leuco dyes), sensitizers, and binders. During printing, the thermal head of the printing unit pulses heat to the paper, which causes the components to melt, triggering the transfer of a proton from the color developer (Pergafast 201) to the leuco dye.  When the leuco dye receives the proton, it transforms chemically, changing from its colorless (i.e., leuco) form to its colored form, which, in most cases, is black. Pergafast 201 “produces high-quality, stable images and provides excellent resistance to heat and water, as well as oils, fats and plasticizers.” When Pergafast 201 is imported in bulk form, the applicable subheading for the product will be 2935.90.7500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “[s]ulfonamides: [o]ther: [o]ther: [o]ther: [p]roducts described in additional U.S. note 3 to section VI."  The rate of duty will be 6.5 percent ad valorem. The Explanatory Notes (ENs) to heading 3707 state, in pertinent part: [s]ubject to the conditions specified at (A) and (B) below, this heading covers products of a kind used directly in the production of photographic images … All the products cited above fall within the heading only when they are: (A) Single substances which are: (i) Put up in measured portions that is uniformly divided up into the quantities in which they will be used, e.g., tablets, small envelopes put up containing the measured amount of powder for one developing bath; or (ii) In packings for retail sale and put up with any indication that they are ready for use in photography, whether by label, literature or otherwise (e.g., instructions for use, etc.). When Pergafast 201 is imported put up in measured portions or put up for retail sale in a form ready for use as per the requirements of the ENs to heading 3707, the applicable subheading for the product will be 3707.90.6000, HTSUS, which provides for unmixed products for photographic uses, put up in measured portions or put up for retail sale in a form ready for use.  The rate of duty will be free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3707.90.6000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 3707.90.6000, HTSUS, listed above. The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively. 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 at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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 classification in heading 2935, HTSUS, please contact National Import Specialist John Bobel at [email protected].  If you have any questions concerning heading 3707, HTSUS, please contact National Import Specialist Fei Chen at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division