June 22, 2005 CBP Bulletin Notices on Silymarin (Milk Thistle) and Leucoanthocyanin and Flame Cut Nonalloy Steel Circles

According to CBP, the revocation is effective for merchandise entered or withdrawn from warehouse for consumption on or after August 21, 2005.

CBP states that any party who has received a contrary ruling or decision on the merchandise that is subject to the proposed rulings, or any party involved with a substantially identical transaction, should advise CBP by July 22, 2005, 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 agent for importations subsequent to the effective date of the final decision in these notices.

CBP also states that these notices cover any rulings on the subject merchandise that may exist but have not been specifically identified.

Proposed Revocation or Modification of Two Classification Rulings

Silymarin (Milk Thistle) and Leucoanthocyanin. At issue are (i) silymarin, which is a yellow powder that contains 80% mixture of isomers of silymarin (silybin, silicristin and silidianin), and (ii) leucoanthocyanin, which is a brownish powder consisting of 90-95% oligomeric proanthocyanidin (OPC).

CBP is proposing to issue HQ 967575 in order to revoke HQ 964338 and reclassify the silymarin in HTS 2932.99.6100 which provides for "products described in additional U.S. note 3 to section VI" rather than in HTS 3824.90.2800 as "chemical products and preparations of the chemical or allied industries, etc.: other mixtures containing 5% or more by weight of one or more aromatic or modified aromatic substances."

In addition, CBP is proposing to issue HQ 967629 in order to modify NY 814027¹ and reclassify the silymarin in HTS 2932.99.6100 and the leucoanthocyanin in HTS 3824.90.2800 rather than classifying both in HTS 1302.19.4040 as "vegetable saps and extracts: other substances having anesthetic, prophylactic or therapeutic properties."

Proposed HQ 967575 - CBP states that in HQ 964338, it had stated that although considered, classification of the product in HTS Chapter 29 was excluded because there was no evidence that the merchandise, as imported, consisted only of isomers of silymarin. However, CBP now considers that statement to be incorrect, as HTS Chapter 29, note 1(b) allows for mixtures of isomers containing impurities.

CBP states that the mixture of isomers makes up 80% of the subject silymarin, and the other 20% is remainder from the starting material and a small amount of solvent, which CBP believes can be considered "impurities" within the terms of the chapter note. Therefore, CBP states that the silymarin should be classified in HTS 2932.99.6100.

Proposed HQ 967629 - Following the reasoning in prior rulings, and the tenet that goods must be classified as imported, CBP notes that the leucoanthocyanin consists of over 90% mixtures of OPCs and the silymarin consists of at least 80% of isomers of silymarin. Therefore, they are relatively pure chemical products, and cannot be classified simply as extracts.

Regarding the silymarin, CBP states that Chapter 29, note 1(b) allows for mixtures of isomers containing impurities. CBP states that the mixture of isomers makes up 80% of the subject silymarin, and the other 20% is remainder from the starting material and a small amount of solvent, which CBP believes can be considered "impurities" within the terms of the chapter note. Therefore, CBP states that the silymarin should be classified in HTS 2932.99.6100.

Regarding the leucoanthocyanin, CBP states that it should be classified in HTS 3824.90.2800 because it is purified from the plant matter well beyond that of an extract, yet it does not contain a separate chemically defined compound, or isomers of such a compound, as necessary for classification in HTS Chapter 29.

proposed: 2932.99.6100, 6.5%; 3824.90.2800, 6.5%

current: 3824.90.2800, 6.5%; 1302.19.4040, 1%

¹ See ITT's Online Archives or 04/21/05 news, 05042150, for BP summary of CBP's withdrawal of an earlier proposed ruling to modify NY 814027.

Revocation of Treatment

Flame Cut Nonalloy Steel Circles. At issue are steel circle blanks which are disc-shaped and oxyacetylene flame cut from hot-rolled steel plates. After importation, they are heated, then spun into tank heads for use on pressure vessel tank cars for the rail industry and general purpose tanks for the conveyance of water, gas, etc.

CBP is issuing HQ 967410 in order to revoke the treatment² CBP has accorded to the subject steel circles and classify the circles in HTS 7208.90.0000 as "flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated: other" rather than in HTS 7326.19.0000 as "other articles of iron or steel: forged or stamped, but not further worked: other."

According to CBP, the original determination that the steel circles were provided for in HTS 7326.19.0000 was based on the belief that the goods were made by a stamping process in accordance with Motor Wheel Corp. v. U.S. However, CBP now states that the subject steel circles are not produced by a recognized stamping process and, therefore, are not stamped articles of the type classifiable in HTS 7326.19.0000. Instead, CBP states that the circles are classified in HTS 7208.90.0000.

²See ITT's Online Archives or 03/24/05 news, 05032445, for BP summary of the proposed revocation, including details on CBP's conclusion that a treatment under 19 CFR 177.12(c) does, in fact, exist in classifying the subject steel circles in HTS 7326.19.0000.

new: 7208.90.0000, duty-free; previous: 7326.19.0000, 2.9%.

June 22, 2005 CBP Bulletin (Vol. 39, No. 26) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2005/vol39_06222005_no26/