CLA-2-38:OT:RR:NC:N1:140
Mr. Peter Murphy
Candelay Industries LLC
4023 Kennett Pike
Greenville, Delaware 19807
RE: The tariff classification of CBD Oil in MCT Carrier Oil from Colombia
Dear Mr. Murphy:
In your letter dated December 13, 2019, you requested a tariff classification ruling.
The subject products consist of three different concentrations of CBD Oil. The subject CBD products are in 30, 50 or 75 mg/ml concentrations. You note that the CBD concentration for each product may vary, by a factor of ± 10 percent, depending on the percentage of medium triglyceride carrier oil (MCT carrier oil) present. The last product listed below, was added to your request via an email to our office, on January 05, 2020. The three products are as follows:
Item Description 1
SKU 61113. Redi-Fill CBD Oil (30 mg/ml). This product will be imported in wholesale volume and comes pre-mixed with a medium chain triglyceride (carrier) oil, such as coconut oil, to achieve a specific CBD concentration.
Item Description 2
SKU 63113. Redi-Fill CBD Oil (75 mg/ml). This product will be imported in wholesale volume and comes pre-mixed with a medium chain triglyceride (carrier) oil, such as coconut oil, to achieve a specific CBD concentration.
Item Description 3 (Added via email)
SKU 64113 Product Redi-Fill MCT CBD Oil 50mg/ml in a Carrier Oil Medium Chain Triglycerides (MCT).
The products are all obtained via Supercritical CO2 extraction from the flowers of the hemp plant. They differ only on the percentage of CBP Oil concentration. They are all extracted from the flowers of the Cannabis sativa L. plants.
In your request letter you indicate that you seek a classification ruling for bulk Cannabidiol Oil (CAS # 13956-29-1) to be imported into the United States from Rionegro, Colombia. The CBD oil is designated for business to business use only and has been third-party laboratory tested to ensure concentrations of no more than 0.3% of THC on dry weight basis. You indicate that this product is defined as a hemp extract under the US Agricultural Improvement Act of 2018. It will be shipped in 10L containers. The product was derived solely from hemp grown in the country of Colombia. You state that all hemp has been certified as USDA Organic, and processed in a GMP facility in Colombia.
The imported hemp oil is for commercial use in the United States, as an ingredient in hemp products including tinctures, creams and cosmetic products.
You suggest classification for these product under Tariff No. 2907.29. We disagree.
Each of these products is imported in a carrier oil consisting of a medium chain triglyceride oil. You indicate that the concentrations of the CBP oil will be varied by controlling the amount of carrier oil present.
Chemical products classifiable under Chapter 29 may consist of those products as delineated in Chapter 29 Note 1 (a-h).
Note 1 to Chapter 29 states, in pertinent part:
Except where the context otherwise requires, the headings of this chapter apply only to:
Separate chemically defined organic compounds, whether or not containing impurities…
(e) Products mentioned in (a), (b) or (c) above dissolved in other solvents provided that the solution constitutes a normal and necessary method of putting up these products adopted solely for reasons of safety or for transport and that the solvent does not render the product particularly suitable for specific use rather than for general use;
The carrier oil is purposefully added to create specific formulations. It is not present “solely” for reasons of safety, or transport. The products as entered do not represent chemically pure organic compounds as those in the rulings cited in your request letter. They are chemical mixtures and preparations for Tariff purposes. They are therefore excluded from classification in Chapter 29.
The applicable subheading for SKU 63113. Redi-Fill CBD (75 mg/ml) and for SKU 64113 Product Redi-Fill MCT CBD Oil 50mg will be 3824.99.2890, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances: Other. The rate of duty will be 6.5 percent ad valorem
The applicable subheading for the SKU 61113. Redi-Fill CBD Oil (30 mg/ml) will be 3824.99.9297, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Other: Other: Other: Other. The rate of duty will be 5 percent ad valorem.
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 the World Wide Web at https://hts.usitc.gov/current.
This merchandise may be subject to the Federal Food, Drug, and Cosmetic Act and/or The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which are administered by the U.S. Food and Drug Administration (FDA). Information on the Federal Food, Drug, and Cosmetic Act, as well as The Bioterrorism Act, can be obtained by calling the FDA at 1-888-463-6332, or by visiting their website at www.fda.gov.
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 Paul Hodgkiss at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division