CLA-2-29:OT:RR:NC:N3:140
Mr. Mohammad Laknahour
In Progress
18134 Killion St. unit #10
Tarzana, CA 91356
RE: The tariff classification; country of origin/marking; and applicability of trade programs of Freon gas 134A (R134a), Freon gas R410A and Freon gas 404 (R-404A) from China.
Dear Mr. Laknahour:
In your letter dated May 26, 2020, you requested a binding ruling for classification, marking, country of origin and the application of trade programs or agreements. The ruling was requested for three Freon related products. The products’ descriptions and uses based on information submitted are provided below:
Item Description 1
Freon gas 134A (R134a) also known as 1,1,1,2-Tetrafluoroethane (CAS # 811-97-2) is a hydrofluorocarbon (HFC) and a common refrigerant used in a wide range of refrigeration and air conditioning applications, including medium and high temperature refrigeration (both domestic and commercial), residential & light air conditioning, automotive air conditioning and industrial applications.
Item Description 2
Freon gas 404 (R-404A) is a pseudo-azeotropic mixed refrigerant composed of the three ingredients R-125, R-134a, and R-143a. It is used across a variety of low and medium temperature applications including super market freezers/refrigerators, vending machines, ice machines, refrigerated transport, and industrial refrigerant systems.
Item Description 3
R-410A is a near-azeotropic mixture of difluoromethane (CH2F2, calledR-32) and pentafluoroethane (C2HF5, called R-125), which is used as a refrigerant in air conditioning applications. Unlike many haloalkane refrigerants it does not contribute to ozone depletion, and is therefore widely used.
The applicable subheading for Freon gas 134A (R134a) will be 2903.39.2020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for 1,1,1,2-Tetrafluoroethane (HFC-134a). The rate of duty will be 3.7 percent ad valorem.
The applicable subheading for Freon gas 404 (R-404A) and R-410A will be 3824.78.0020, 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: Mixtures containing halogenated derivatives of methane, ethane or propane: Containing perfluorocarbons (PFCs) or hydrofluorocarbons (HFCs), but not containing chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs): Hydrofluorocarbon refrigerant blends specified in statistical note 2 to this chapter. The rate of duty will be 3.7 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3824.78.0020, 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 3824.78.0020, 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, 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.
In your inquiry you also requested a country of origin determination, marking and application of trade programs or agreements. Your inquiry does not provide enough information for us to issue a ruling on marking.
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.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
As defined in 19 CFR 134.1(b), "country of origin" means the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to change the country of origin of the article. A substantial transformation is said to occur when, after further processing or manufacture, an article emerges having a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F. 2d 778 (1982).19 CFR 134.35 and Headquarters Ruling Letters (HRLs) 555982, dated August 2, 1991.
Based on the facts presented, Freon gas 134A (134a), Freon gas R410A and Freon gas 404 (R-404A) are manufactured in China. Therefore the country of origin is China. As far as the applicability of trade programs or trade agreements, the United States does not currently have in effect a trade program or trade agreement with China.
For further information on admissibility, please contact your assigned Customs Center of Excellence & Expertise office prior to the importation of the goods.
The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at https://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov/trade_remedy/documents/orders.xls, and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at https://aceservices.cbp.dhs.gov/adcvdweb. This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U.S. Environmental Protection Agency (EPA). Information on the TSCA can be obtained by contacting the EPA at Document Control Office (7407M), Office of Pollution Prevention and Toxics (OPPT), Environmental Protection Agency, 1200 Pennsylvania Avenue, N.W., Washington, D.C., 20460, by calling the Toxic Substances Control Act Hotline at (202) 554-1404, by e-mailing to [email protected], or by visiting their website at www.epa.gov.
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 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].
Steven A. Mack
Director
National Commodity Specialist Division