March 22, 2006 CBP Bulletin on Silymarin (Milk Thistle) and Leucoanthocyanin
In the March 22, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 13), CBP 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.
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According to CBP, the revocation and modification are effective for merchandise entered or withdrawn from warehouse for consumption on or after May 21, 2006.
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 issuing HQ 967971 in order to revoke HQ 964338 and reclassify the silymarin in HTS 2932.99.6100 as "Heterocyclic compounds with oxygen hetero-atom(s) only: other: other: aromatic: other: products described in additional U.S. note (AUSN) 3 to section VI;" rather than under HTS 3824.90.2800 as "Prepared binders for foundry molds or cores;...mixtures containing 5% or more by weight of one or more aromatic or modified aromatic substances: other."
In addition, CBP is issuing HQ 967972 in order to modify NY 814027 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: other: other."
Silymarin. 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. In addition, within HTS Chapter 29, CBP contends that silymarin is undisputedly a heterocyclic compound as it includes six-membered rings containing oxygen atoms in the ring. Therefore, CBP finds that the silymarin is classified in HTS 2932.99.6100.
Leucoanthocyanin. Following its 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. Therefore, it is a relatively pure chemical product, and cannot be classified simply as an extract.
As a result, CBP finds that leucoanthocyanin is 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.
(CBP notes that it issued a final action on subject merchandise in the September 28, 2005 CBP Bulletin, but later withdrew the notice of final action in order to take into consideration a comment that was timely received, but was not forwarded to its Office of Regulations and Rulings for consideration before the publication of the final action. CBP has now considered the comment and addresses the argument set forth in these final rulings.)
new: HTS 2932.99.6100 (silymarin), 6.5%; 3824.90.2800 (leucoanthocyanin), 6.5%; previous: 3824.90.2800 (silymarin), 6.5%; 1302.19.4040 (silymarin and leucoanthocyanin), 1%.
(See ITT's Online Archives or 11/23/05 news, 05112335, for BP summary of the withdrawal of revocation and modification on subject merchandise. See ITT's Online Archives or 10/12/05 news, 05101245, for BP summary of the [withdrawn] revocation (HQ 967575) and modification (HQ 967629) of classifications rulings on subject merchandise.)
March 22, 2006 (Vol. 40, No. 13) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_03222006_no13/