CLA-2-34:OT:RR:NC:2:236
Mr. Joseph F. Walter
Livingston International Trade Services, Inc.
670 Young Street
Tonawanda, NY 14150
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of “Enerzan L,” “Liquislide Salt,” “CES Primary,” “CES Secondary,” and “CES Wetting Agent” from Canada; Article 509
Dear Mr. Walter:
In your letter dated May 18, 2012, on behalf of your client, you requested a tariff classification and ruling status of “Enerzan L,” “Liquislide Salt,” “CES Primary,” “CES Secondary,” and “CES Wetting Agent,” under the NAFTA.
In your submission, you state that all five products are in liquid form and intended for use as additives for oilfield drilling fluids. You have described the five products as follows: “Enerzan L” is a viscosifier for water based drilling fluids, “Liquislide Salt” is a lubricant used in both water and oil based systems, “CES Primary” is a primary emulsifier for invert drilling fluids, “CES Secondary” is a secondary emulsifier for invert drilling fluids, and “CES Wetting Agent” is a surface wetting agent for oil based systems. You indicate that the components used to produce “Enerzan L” are from the United States, Canada, and China; the products used to produce “Liquislide Salt, CES Primary, CES Secondary, and CES Wetting Agent” are from the United States and Canada.
The applicable subheading for “Enerzan L” will be 3824.90.4800, 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: Mixtures that are in whole or in part of hydrocarbons derived in whole or in part from petroleum, shale oil or natural gas. The general rate of duty will be 6.5 percent ad valorem.
The applicable subheading for “Liquislide Salt” will be 3403.19.5000, (HTSUS), which provides for Lubricating preparations (including cutting-oil preparations, bolt or nut release preparations, antirust or anticorrosion preparations and mold release preparations based on lubricants) and preparations of a kind used for the oil or grease treatment of textile materials, leather, furskins or other materials, but excluding preparations containing, as basic constituents, 70 percent or more by weight of petroleum oils or oils obtained from bituminous minerals: Containing petroleum oils or oils obtained from bituminous minerals: Other: Other. The general rate of duty will be 5.8 percent ad valorem.
The applicable subheading for “CES Primary,” “CES Secondary,” and “CES Wetting Agent” will be 3402.90.5050, (HTSUS), which provides for Organic surface-active agents (other than soap); surface-active preparations, washing preparations (including auxiliary washing preparation) and cleaning preparations, whether or not containing soap, other than those of heading 3401: Other: Other: Other: Other. The general rate of duty will be 3.7 percent ad valorem.
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. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Mail Code 70480, Washington, D.C., by telephone at (202) 554-1404, 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 World Wide Web at http://www.usitc.gov/tata/hts/.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(i) or 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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 Nuccio Fera at (646) 733-3034.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division