CLA-2-38:OT:RR:NC:N3:139
Ms. M? Dang
iVIK Holdings LLC
1323 W Jackson Ave
River Forest, IL 60305
RE: The tariff classification of bulk Cannabidiol Oil in solvent from Colombia
Dear Ms. Dang:
In your electronic ruling submission dated October 6, 2020, you requested a tariff classification ruling on behalf of iVIK Holdings Ltd.
The subject product is called Cannabidiol (CBD) Oil (CAS # 13956-29-1). It is stated to be five different mixtures of CBD Oil in solvent. The five different mixtures of CBD Oil will be: 8.3, 16.6, 33, 50 or 75 mg/ml concentrations with a variation factor of ± 10 percent, depending on the percentage of medium triglyceride carrier oil (MCT carrier oil) present. The CBD Oil is a purified extract of Hemp.
You indicate that the you are seeking a classification review for these five mixtures and have suggested the Harmonized Tariff Schedule of the United States classifications of 3824.99.2890, or 3824.99.9297. All the products will be imported into the United States from Colombia. You state that the imported products are defined as hemp extracts under the US Agricultural Improvement Act of 2018 ("2018 Farm Bill"). You indicate that it will be shipped in 10L and 20L containers. You also state that the CBD Oil mixtures have been third-party laboratory tested to ensure concentrations of no more than 0.3% of delta-9 tetrahydrocannabinol (THC). Laboratory reports for two of the products were included in your ruling request. These products are indicated to be derived solely from hemp grown in the country of Colombia. The products are for commercial use in the United States as an ingredient in tinctures, creams and cosmetic products. A brief description of all the products was provided with your request, along with the aforementioned two lab reports (with each lab report describing the mixtures expected to arrive in the first shipment), two pictures of 20 L containers (with each container containing the mixtures expected to arrive in the first shipment), as well as samples of the labels that will go on the containers for each of the five different mixtures that you have asked us to rule upon. A label sample for a sixth mixture, at a concentration that you did not describe in your request was included here. We will not provide a classification determination on this mixture.
The description you provided for the five requested mixtures is summarized below:
Item Description 1
BDN6001121R. Redi-fill MCT CBD Oil USA 8.3mg. 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. The percentage of CBD by weight would be .83%
Item Description 2
BDN6001221R. Redi-fill MCT CBD Oil USA 16.6mg. 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. The percentage of CBD by weight would be 1.66%
Item Description 3
BDN6001421R. Redi-fill MCT CBD Oil USA 33mg. 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. The percentage of CBD by weight would be 3.3%
Item Description 4
BDN6001521R. Redi-fill MCT CBD Oil USA 50mg. 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. The percentage of CBD by weight would be 5.0%
Item Description 5
BDN6001621R. Redi-fill MCT CBD Oil USA 75mg. 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. The percentage of CBD by weight would be 7.5%
The applicable subheading for Items BDN6001121R, BDN6001221R, and BDN6001421R 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 general rate of duty will be 5%.
The applicable subheading for Items BDN6001521R, and BDN6001621R 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: Other: Other: Mixtures containing 5 percent or more by weight of one or more aromatic or modified aromatic substances: Other: Other.” The general rate of duty will be 6.5%.
Articles classifiable under subheadings 3824.99.2890, and 3824.99.9297 HTSUS, which are products of Colombia, may be entitled to duty free treatment under the U.S.-Colombia Trade Promotion Agreement, upon compliance with all applicable regulations.
We note, that due to the highly complex and variable nature of the raw material and the extraction and purification processes, that these products may require verification of their chemical constituents at time of entry, including potential sampling and analysis of chemical and other ingredients.
A review of FDA Regulations for Cannabis derived products including those containing CBD Oil can be found at: https://www.fda.gov/news-events/public-health-focus/fda-regulation-cannabis-and-cannabis-derived-products-including-cannabidiol-cbd#legaltosell.
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.can be obtained by contacting the FDA at: Food and Drug Administration, Division of Import Operations and Policy, 5600 Fishers Lane, Rockville, Maryland 20857, Telephone: (888) 463-6332.
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 John Bobel at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division