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May 30 CBP Bulletin Proposes to Modify Rulings on the Eligibility of Recovered Refrigerant Gas for Preferential Tariff Treatment Under NAFTA

In the May 30, 2012 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No. 24), CBP published a notice that proposes to modify rulings and similar treatment regarding the tariff treatment of recovered refrigerant gas.

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Comments on Proposed Modifications Due June 29

CBP said that before taking this action, consideration will be given to any written comments received by June 29, 2012. In addition, any party who has received a ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by the date that written comments on the proposed ruling are due. (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 Modifications

CBP is proposing to modify the ruling below, and any rulings on these products that may exist but have not been specifically identified. CBP is also proposing to modify any treatment it has previously accorded to substantially identical transactions.

Refrigerant Gas Recovered in Canada

Item: Refrigerant Gas Recovered in Canada. Used refrigeration equipment containing chlorodifluoromethane (R-22) is imported from unknown countries to Canada, where the refrigerant is then extracted into 1000 lb. cylinders and imported into the United States.
Current: 2903.49.9010, 3.7% (Halogenated derivatives of acyclic hydrocarbons containing two or more different halogens: Other: Other)
Proposed: 2903.49.9010, (Free) (Halogenated derivatives of acyclic hydrocarbons containing two or more different halogens: Other: Other) (“Special” “CA” rate of duty)
Reason: CBP said for implementing the rules of origin provisions of General Note 12, HTSUS, and Chapter 4 of the NAFTA, except as provided in 181.132(b), disassembly is considered to be production and a component recovered from a used good disassembled in the territory of a party will be considered to be an originating good provided that the recovered component satisfies all requirements. CBP also found Canada is the last country in which the good underwent processing other than minor processing, so the country of origin for marking and duty purposes would be Canada, making it eligible for NAFTA treatment.
Proposed for revocation: N161355 (2011)
Proposed new ruling: HQ H172315