Aug 24 CBP Bulletin Proposes to Revoke/Modify Rulings on Pumpkin Seeds, Antibiotic
In the August 24, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 35), CBP published two notices that propose to revoke or modify ten rulings regarding the tariff classification of hulled pumpkin seeds and antibiotic drug Azithromycin.
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Comments on Proposed Ruling Actions due Sept 23
CBP states that any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations or modifications, or any party involved with a substantially identical transaction, should advise CBP by September 23, 2011, the date that written comments on the proposed rulings are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agents for importations subsequent to the effective date of the final decision in this notice.
Proposed Revocations and Modifications
CBP is proposing to revoke or modify the ten rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Raw, Hulled Pumpkin Seeds
| Item: Raw, hulled pumpkin seed kernels. The seeds are not roasted, salted, or otherwise prepared or preserved. The seeds could be packed and sold at retail in bulk for human consumption and industrial processing. They will be sold at food stores, marketed to bakeries and milling industries, the vegetable oil, nutritional supplements, and pharmaceutical industries. They are packaged in 10, 25, 40, and 50 kilogram paper or plastic bags. The seeds are no longer capable of germination. |
| Current: 1209.91.80, 1.5¢/kg* (Pumpkin seeds used for sowing) |
| Proposed: 1212.99.91, free (Fruit stones and kernels, etc. of a kind used primarily for human consumption, not elsewhere specified or included) |
| Reason: CBP now states that the Explanatory Note (EN) to heading 1209 provides a list of products that are normally used for other than sowing and are therefore excluded from heading 1209, which includes seeds used primarily in pharmacy, etc. or similar purposes. Additionally, the EN to heading 1212 states that fruit stones and kernels and other vegetable products of a kind used primarily for human consumption and that are not elsewhere specified or included fall under that heading. CBP now finds the seeds are primarily used for human consumption and not for sowing as (i) all the industries and stores to which the seeds are sold or marketed cater to human consumption; (ii) the smaller size of the packaging indicates it would be for individuals and not used by farmers to sow a field; and (ii) the seeds are unsuitable for sowing. Accordingly, the seeds are classifiable under heading 1212 and not heading 1209. |
| Proposed for revocation: HQ 954648 (1993), NY 885798 (1993), NY C81606 (1997), NY C80043 (1997), NY 856226 (1990), HQ 958495 (1995), HQ 955091 (1994), HQ 954317 (1993) |
| Proposed new ruling: HQ H108019 |
*This is the current duty rate in the 2011 Harmonized Tariff Schedule.
Antibiotic Drug Azithromycin
| Item: Antibiotic drug Azithromycin. This drug is a semi-synthetic derivative of Erythromycin, which is a naturally occurring macrolide antibiotic. It is indicated for use as an antibacterial drug. It has a 15-member lactone ring that does not contain the original Erythromycin skeleton. |
| Current: 2941.50.00, free (Antibiotics: Erythromycin and its derivatives; salts thereof) |
| Proposed: 2941.90.50, free (Other antibiotics) |
| Reason: CBP notes that the EN for subheading 2941.50 specifically excludes Azithromycin from classification as an Erythromycin derivative. Additionally, heading 2941 ENs state that a derivative must retain the essential characteristics of the parent compound, including its basic chemical structure. The basic chemical structure of Erythromycin contains a 14-member lactone ring, while that of Azithromycin contains a 15-member lactone ring instead. As Azithromycin no longer contains the nucleus or skeleton of the parent substance nor the parent compound's basic chemical structure, CBP states Azithromycin cannot be classified under subheading 2941.50. |
| Proposed for modification: NY C88143 (1998), NY F86114 (2000) |
| Proposed new ruling: HQ H128140 |
(See ITT's Online Archives or 08/23/11 news, 11082334, for BP summary announcing the availability of the August 24 CBP Bulletin rulings.)