Jan. 29 CBP Bulletin Proposes to Revoke Rulings on Propafenone Hydrochloride, Cubic Zirconia Earrings
In the Jan. 29 Customs Bulletin (Vol. 59 No. 5), CBP published proposals to modify and/or revoke ruling letters concerning the tariff classification of propafenone hydrochloride and certain earrings with cubic zirconia.
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Comments on Proposal Due Feb. 28
CBP said consideration will be given to any written comments received by Feb. 28 before taking these actions. In addition, any party that 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 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 after the effective date of the final decision in this notice.)
Proposal
CBP is proposing to revoke or modify the rulings below, and any rulings on these products that may exist but have not been specifically identified. CBP also is proposing to revoke any treatment it has previously accorded to substantially identical transactions.
Propafenone Hydrochloride
| Items: NY J81823: Paroxetine hydrochloride hemihydrate, for the treatment of depression, obsessive-compulsive disorder, panic disorder, social anxiety disorder and generalized anxiety disorder; pentazocine hydrochloride, an analgesic drug; phenelzine sulfate, an antidepressant; propafenone hydrochloride, an antiarrhythmic drug; NY 891019: Tinidazole, an antiprotozoal drug; propafenone HCL, an anti-arrhythmic drug; and piperacillin sodium, an antibacterial drug; NY 810507: Piroxicam, an anti-inflammatory drug; prazosin hydrochloride, an antihypertensive drug; propafenone hydrochloride, a cardiac depressant (anti-arrhythmic) drug |
| Current: Harmonized Tariff Schedule subheading 2922.50.14, which provides for “Oxygen-function amino-compounds: Amino-alcohol-phenols, amino-acid-phenols and other amino-compounds with oxygen function: Aromatic: Other: cardiovascular drugs" |
| Proposed: Harmonized Tariff Schedule subheading 2922.19.09, which provides for “Oxygen-function amino compounds: Amino-alcohols, other than those containing more than one kind of oxygen function, their ethers and esters: salts thereof: Other: Aromatic: Drugs.” |
| Reason: There is no dispute that propafenone hydrochloride is properly classified under Harmonized Tariff Schedule heading 2922, CBP said. Based on its chemical structure, propafenone hydrochloride is an oxygen-function amino compound. However, classification under heading 2922.50 is inappropriate because propafenone hydrochloride is an inorganic salt of the organic compound propafenone. Under General Note 13 to the HTSUS, products listed in the Pharmaceutical Appendix of the HTSUS may be subject to a special duty rate of “free” when the symbol “K” appears in the “Special Duty” column for the applicable subheading of the product. Table 1 of the Pharmaceutical Appendix lists out the INNs of drugs that are covered under the special duty rate when the letter “K” appears. As noted, propafenone hydrochloride is a salt of the product propafenone. Propafenone is listed in Table 1 of the Pharmaceutical Appendix. |
| Proposed for revocation: NY J81823, dated March 12, 2003; NY 891019, dated Nov. 5, 1993; and NY 810507, dated May 26, 1995 |
| Proposed new ruling: HQ H306891 |
Certain Earrings With Cubic Zirconia
| Items: NY N310000: A total of nine pairs of earrings; one pair of earrings that was being contested was made of base metal with plastic and was red and heart-shaped with a small cubic zirconia on the back of the earrings |
| Current: Harmonized Tariff Schedule subheading 7117.90.7500, which provides for “Imitation Jewelry: Other: Other: Valued over 20 cents per dozen pieces or parts: Other: Of plastics.” |
| Proposed: Harmonized Tariff Schedule subheading 7116.20.0500, which provides for “Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed): Of precious or semiprecious stones (natural, synthetic, or reconstructed): Articles of jewelry: Valued not over $40 per piece: Other.” |
| Reason: The pair of earrings in the multiple earring pack at issue contains cubic zirconia, which is a semi-precious stone. It cannot be described as imitation jewelry within the meaning of heading 7117, and accordingly cannot be classified in this heading. |
| Proposed for revocation: NY N310000, dated March 10, 2020 |
| Proposed new ruling: HQ H328582 |