CLA-2 CO:R:C:F 955089 ASM

District Director
U.S. Customs Service
P.O. Box 37260
Milwaukee, WI 53237-0260

RE: Application for Further Review of Protest No. 3701-93- 100123, Hydroxypropyl-beta-cyclodextrin (CAS 94035-02-6).

Dear Sir:

This is a decision on a protest filed August 19, 1993, against your decision in the classification of merchandise liquidated on June 11, 1993.

FACTS:

The protestant entered the subject merchandise in subheading 3505.10.0010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), as a dextrin, dutiable at 1.1 cent/kg.

At liquidation, Customs reclassified the merchandise under subheading 2940.00.0000 HTSUSA, as a sugar ether, dutiable at 5.8 percent ad valorem.

The protestant seeks reclassification of the goods to subheading 3505.10.0010 HTSUSA, claiming that the chemical should be classified under the provision for dextrins and other modified starches.

ISSUE:

What is the proper classification under the HTSUSA of Hydroxypropyl-beta-cyclodextrin (CAS 94035-02-6)? - 2 -

LAW AND ANALYSIS:

Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is made in accordance with the General Rules of Interpretation (GRI's). As stated in GRI 1, the classification is determined first in accordance with the terms of the headings which must be read in conjunction with the relative notes. If GRI 1 fails to classify the goods and if the heading and legal notes do not otherwise require, the remaining GRI's are applied in their appropriate order. The Explanatory Notes to the Harmonized Commodity Description and Coding System (EN's), facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI's.

This product was entered as a dextrin and the protestant asserts that it should be classified as such, in accordance with subheading 3505.10.0010 HTSUSA. Dextrins, which are provided for in heading 3505 HTSUSA, are obtained by the degradation of starch by hydrolysis with acids or enzymes. The resulting product is defined as a maltodextrin. However, in order to be classified as a dextrin under subheading 3505.10.0010 HTSUSA, the product's "reducing sugar content" (expressed as dextrose on the dry substance), cannot exceed 10 percent. See Legal Note 2, Chapter 35, HTSUSA and EN 3505.10 (A)(1). Furthermore, dextrins are not single chemical compounds, but rather, polymeric carbohydrates with very high molecular weight. The product in question, Hydroxypropyl-beta-cyclodextrin (CAS 94035-02-6), has the following chemical structure: (HOCH2 CH 2 CH 2)x. Thus, Hydroxypropyl-beta-cyclodextrin is a single chemical compound, whereby the hydrogen has been replaced with a hydroxyl propyl ether unit. This makes the product a "sugar ether" with an extremely low molecular weight. The EN's for heading 2940 HTSUSA, specifically include sugar ethers (whether or not they are chemically defined). See EN's at pg. 422.

HOLDING:

The protest should be denied. A copy of this decision should be attached to the Form 19 to be returned to the protestant.

The product, Hydroxypropyl-beta-cyclodextrin (CAS 94035-02- 6), is properly classified under subheading 2940.00.0000 HTSUSA, a provision for "Sugars, chemically pure, other than sucrose, lactose, maltose, glucose and fructose; sugar ethers and sugar esters, and their salts, other than products of heading 2937, 2938 or 2939."

Merchandise entered in 1993 and liquidated under subheading 2940.00.0000 HTSUSA was subject to the column one general rate of duty of 5.8 percent ad valorem. - 3 -

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision, the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS, and to the public via the Diskette Subscription Service, the Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division