CLA-2-28:OT:RR:NC:2:236

Mr. Philip L. Flor
Royce Associates ALP
35 Carlton Avenue
East Rutherford, NJ 07073

RE: The tariff classification of sodium formaldehyde sulfoxylate (CAS 149-44-0) from China and India

Dear Mr. Flor:

In your letter dated September 17, 2010 you requested a tariff classification ruling.

Your literature states that you plan to import sodium formaldehyde sulfoxylate (CAS 149-44-0) from two different suppliers, one in China and one in India. You indicate that the product will be imported in a semi-finished crude form and that it cannot be used in its imported condition but requires further processing as described below first.

You state that after importation the sodium formaldehyde sulfoxylate will be processed in two ways:

(1) You will grind the product from China and the product from India into different particle sizes. The product that you subsequently sell to others is a processed and blended product that contains a percentage of Chinese origin raw materials and a percentage of Indian origin raw materials. These percentages vary from 10% to 90% for both the product from China and India.

(2) You may produce a liquid version of the end product which utilizes the same raw material from China and India. Your literature states that you will grind the raw materials and then dissolve them in water to produce an aqueous solution. At this time additional U.S. chemicals are added to stabilize the liquid version. For tariff classification purposes, the products imported from China and India that are processed after importation as described above do not undergo a substantial transformation that requires a new and different classification for the products but are subject to minor processes which leave the identity of the imported articles intact.

The applicable subheading for the sodium formaldehyde sulfoxylate will be 2831.10.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Dithionites and sulfoxylates: Of sodium: Sodium formaldehyde sulfoxylate. The rate of duty will be Free.

You also asked about country of origin marking requirements that may apply to the imported goods after importation when sold to subsequent users after the processing described above.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

Section 134.1(d) of the Customs Regulations (19 CFR 134.1(d)) provides that the "ultimate purchaser" is generally the last person in the United States who will receive the article in the form in which it was imported. However, Section 134.1(d)(2) states that if a manufacturing process is applied to an article after importation and that process is merely a minor one that leaves the identity of the product intact, the consumer or user of the article, who obtains the article after the processing, will be regarded as the ultimate purchaser.

As stated earlier, the imported articles do not undergo a substantial transformation as a result of the processes described above but undergo minor processes that leave the identity of the products intact. Therefore, any user or consumer who obtains the articles after the processing will be the “ultimate purchaser” for country of marking purposes.

Containers of the imported goods that are processed as described above and subsequently obtained by a user who is deemed to be the ultimate purchaser may be marked as “Made in China and India” in a manner which is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134.

This merchandise may be subject to the Toxic Substances Control Act (TSCA), which is regulated by the U.S. Environmental Protection Agency (EPA). The TSCA Assistance Information Service (TSCA Hotline) provides both general and technical information on TSCA regulations. Services are provided to industry, labor and trade organizations, environmental groups, and the general public. The TSCA Assistance Information Service can be reached by phone at (202) 554-1404, or by accessing the following website: www.epa.gov/epahome/hotline.htm.

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 Debra Wholey at (646) 733-3034.

Sincerely,

Robert B. Swierupski
Director
National Commodity Specialist Division