Mr. John T. Hyatt
The Irwin Brown Company
212 Charles Street
New Orleans, LA 70130
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of formulated herbicides based on Glyphosate-isopropylammonium (CAS-38641-94-0), from Guatemala
Dear Mr. Hyatt:
In your letter dated May 14, 2010, on behalf of your client, Central America Toll Manufacture and Logistics (CTL), you requested a tariff classification ruling on formulated Glyphosate herbicides from Guatemala and their eligibility for preferential treatment under the DR-CAFTA.
The products are described as formulated herbicides containing either 41% or 62% percent Glyphosate-isopropylammonium (aka isopropylamine salt of Glyphosate) as the active ingredient. The merchandise will be produced in Guatemala from ingredients imported from China, among other countries. In Guatemala, the active ingredient is manufactured from foreign Glyphosate Technical 95% (CAS-1071-83-6) (classification 2931.00.9043, Harmonized Tariff Schedule of the United States, (HTSUS)- NY Ruling Letter N003159) and foreign isopropylamine (CAS-75-31-0) (classification 2921.19.1100, HTSUS- cf. NY Ruling Letter A800826). These compounds undergo an exothermic chemical reaction resulting in the new active ingredient product, Glyphosate-isopropylammonium. The reaction takes place in a 1 atm stainless steel reactor from 25°C to 55°C maximum internal temperature. A chilling unit is employed to keep the temperature at the desired level. Glyphosate-isopropylammonium is then formulated into the finished 41% or 62% percent products by the addition of water and a proprietary surfactant. The products then undergo a final filtration.
The applicable subheading for the formulated herbicides based on Glyphosate-isopropylammonium will be 3808.93.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Insecticides, rodenticides, fungicides, herbicides, antisprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulfur-treated bands, wicks and candles, and flypapers): Other: Herbicides, anti-sprouting products and plant-growth regulators: Other: Other.” The rate of duty will be 5 percent ad valorem.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or…
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
General Note 29(m)(vii)(A), HTSUS, states that
(vii) 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) 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.
General Note 29 (N), Chapter 38.9 states:
Chapter 38. 9. A change to subheadings 3808.10 through 3808.90 from any other subheading, provided that 50 percent by weight of the active ingredient or ingredients is originating.
Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of General Note 29, Sections (b)(ii)(A), (m)(vii)(A) and (n)/Chapter 38.9, HTSUS. The goods will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
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 product may be subject to the requirements of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), which are administered by the U.S. Environmental Protection Agency, Office of Pesticide Programs. Information on the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) can be obtained by contacting the National Pesticide Information Center (NPIC) at 1-800-858-7378, or by visiting the EPA website at www.epa.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 Harvey Kuperstein at (646) 733-3033.
Robert B. Swierupski
National Commodity Specialist Division