September 28, 2005 CBP Bulletin on Silymarin (Milk Thistle) and Leucoanthocyanin
In the September 28, 2005 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 39, No. 40), CBP has issued a notice modifying and revoking two classification rulings with respect to silymarin (milk thistle) and leucoanthocyanin. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions that are contrary to its position in this notice.
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According to CBP, the revocation and modification are effective for merchandise entered or withdrawn from warehouse for consumption on or after November 27, 2005.
Revocation and 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 has previously stated 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.
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.
new: 2932.99.6100, 6.5%; 3824.90.2800, 6.5%
previous: 3824.90.2800, 6.5%; 1302.19.4040, 1%
(See ITT's Online Archives or 06/27/05 news, 05062735, for BP summary of proposed HQ 967575 and proposed HQ 967629.)
September 30, 2005 (Vol. 39, No. 40) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2005/vol39_09282005_no40/