OT:RR:CTF:VS H314643 AP
John T. Hyatt
CH Powell Company
3500 North Causeway Boulevard
Metairie, Louisiana 70002
RE: Dicamba DMA salt, CAS No. 2003-66-5; DR-CAFTA eligibility
Dear Mr. Hyatt:
This is in response to your February 13, 2020 ruling request, filed on behalf of Central America Toll Manufacture and Logistics (“CTL”), in which you request a ruling regarding the eligibility of Dicamba Dimethylamine (“DMA”) salt, Chemical Abstract Service (“CAS”) Number (“No.”) 2003-66-5, for preferential tariff treatment under the Dominican Republic - Central America - United States Free Trade Agreement (“DR-CAFTA”).
FACTS:
CTL plans to import into the U.S. from Guatemala the Doleac DMA (3,6-dichloro-o-anisic acid-dimethylamine (1:1)), CAS No. 2003-66-5, an herbicide known as Dicamba DMA salt. You state that the Dicamba DMA Salt is classifiable in
subheading 3808.93.15, Harmonized Tariff Schedule of the United States (“HTSUS”). Its active ingredients are: 50.2 percent of DMA salt of Dicamba containing 41.7 percent 3,6-dichloro-o-anisic acid (Dicamba) or 4 pounds per gallon (480 g/L), and 49.8 percent other ingredients.
The base product of the Dicamba DMA salt, CAS No. 2003-66-5, is Dicamba Technical acid (3,6-dichloro-o-anisic acid), CAS No. 1918-00-9, known as Dicamba. The Dicamba Technical acid contains 98.15-98.25 percent 3,6-dichloro-o-anisic acid (Dicamba), 0.11-0.15 percent water, and 0.12-0.17 percent acetone insoluble. You state that the Dicamba Technical acid is classifiable in subheading 2918.99.20, HTSUS.
During the chemical reaction in Guatemala, the Dicamba Technical acid, CAS No. 1918-00-9 sourced from China or India will react with Dissolvine Z-S, CAS No. 60-00-4, an amine compound known as Ethylenediamine Tetraacetic acid sourced from the U.S. After reacting with the Dissolvine Z-S, CAS No. 60-00-4, the Dicamba will be mixed with 40-60 percent water sourced from Guatemala; Dimethylamine, aqueous, CAS No. 124-40-3 sourced from Mexico or Germany; and Dimethylpolysiloxane, CAS
No. 63148-62-9 sourced from the U.S. The final product, Dicamba DMA, CAS
No. 2003-66-5, will be packaged into retail containers and imported into the U.S.
ISSUE:
Whether the subject Dicamba DMA salt, CAS No. 2003-66-5 is DR-CAFTA originating and eligible for preferential treatment under the DR-CAFTA.
LAW AND ANALYSIS:
The DR-CAFTA was signed by the governments of Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States on August 5, 2004. The DR-CAFTA was approved by the U.S. Congress with the enactment on August 2, 2005, of the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, Pub. L. 109-53, 119 Stat. 462 (19 U.S.C.
§ 4001 et seq.).
General Note (“GN”) 29, HTSUS implements the DR-CAFTA. GN 29(b), subject to the provisions of subdivisions (c), (d), (m) and (n) of GN 29, HTSUS, sets forth the criteria for determining whether a good (other than agricultural goods provided for in GN 29(a)(ii)) is an originating good for purposes of the DR-CAFTA.
The Dicamba DMA salt will be produced in Guatemala from DR-CAFTA originating and non-originating materials. Subdivision (n) referred to in GN 29(b), HTSUS, sets forth the tariff shift method of qualifying as an originating good under DR-CAFTA. GN 29(m)(vii)(A), HTSUS, provides an alternative method for a product of a “chemical reaction” to qualify as an “originating” good under DR-CAFTA.
GN 29(m)(vii)(A), HTSUS, states, in relevant part:
This subdivision confers origin on the goods specified in the provisions below, except as otherwise specified herein. Notwithstanding the preceding sentence, a good is originating if it meets the applicable change in tariff classification rules specified in subdivision (n) of this note.
A good of chapters 27 through 40, inclusive (except a good of heading 3823), of the tariff schedule, that is the product of a chemical reaction in the territory of one or more of the parties to the Agreement shall be treated as originating. For purposes of applying this subdivision to goods of the foregoing chapters, a “chemical reaction” is a process (including a biochemical process) that results in a molecule with a new structure by breaking intramolecular bonds and by forming new intramolecular bonds, or by altering the spatial arrangement of atoms in a molecule ….
Pursuant to GN 29(m)(vii)(A), HTSUS, the Dicamba DMA salt is the product of a “chemical reaction” in Guatemala when the base product Dicamba, CAS No. 1918-00-9 sourced from China or India reacts with the Dissolvine Z-S, CAS No. 60-00-4 sourced from the U.S., and the resulting product is mixed with water sourced from Guatemala; Dimethylamine, aqueous, CAS No. 124-40-3 sourced from Mexico or Germany; and Dimethylpolysiloxane, CAS No. 63148-62-9 sourced from the U.S. The U.S. Customs and Border Protection (“CBP”) Laboratories and Scientific Services Division (“LSSD”) has confirmed that the process results in a proton transfer with one bond breaking and another forming.
Accordingly, the instant Dicamba DMA salt, CAS No. 2003-66-5 resulting from the above-described “chemical reaction” in Guatemala meets the originating requirements of GN 29(m)(vii)(A), HTSUS, and is eligible for treatment as a DR-CAFTA originating good.
HOLDING:
Based on the information presented, the Dicamba DMA salt, CAS No. 2003-66-5, which is the product of a “chemical reaction” in Guatemala within the meaning of
GN 29(m)(vii)(A), HTSUS, qualifies as a DR-CAFTA originating good and is eligible for DR-CAFTA preferential treatment.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a [CBP] field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Monika R. Brenner, Chief
Valuation and Special Programs Branch