July 17, 2009 CBP Bulletin Notice on Classification of FC-77 Fluorinert
In the July 17, 2009 issue of the U.S. Customs and Border Protection Bulletin (Vol. 43, No. 28), CBP published a notice proposing to revoke one ruling and a treatment as follows:
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Proposed revocation of ruling; proposed revocation of treatment. CBP is proposing to revoke one ruling on the classification of FC-77 Fluorinert. Additionally, CBP proposes that this notice covers any rulings on this merchandise that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received an interpretive 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 August 16, 2009, the date that written comments on the proposed ruling 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 this notice.
FC-77 Fluorinert. According to CBP Laboratory Report NY20071768A, dated May 8, 2008, FC-77, CAS Registry No. 86508-42-1, is a mixture of Perfluoro furans, a perfluoro pyran (oxygen heterocyclic compounds) with a perfluoro acyclic hydrocarbon. The Material Safety Data Sheet for the product notes its specific use as a testing fluid or heat transfer fluid for electronics.
CBP is proposing to issue HQ H058796 in order to revoke NY B89965 and reclassify FC-77 Fluorinert under HTS 3824.90.92, as an "other chemical preparation" rather than under HTS 3824.90.55 (formerly 3824.90.47) as "other mixtures of hydrogenated hydrocarbons."
CBP proposes this change as a correction. There is no dispute that the instant merchandise is classified as an "other chemical product" in subheading 3824.90. At issue is the proper 8-digit tariff rate. Therefore, GRI 6 is implicated. GRI 6 requires that the classification of goods at the subheading level "shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the above rules [GRIs 1-5], on the understanding that only subheadings at the same level are comparable."
The merchandise contains a mixture of perfluoro furans, a perfluoro pyran (oxygen heterocyclic compounds) with a perfluoro acyclic hydrocarbon. While the perfluoro acyclic hydrocarbon is a halogenated hydrocarbon, the other compounds in the mixture are not halogenated hydrocarbons. As such, the entire mixture is not composed of only halogenated hydrocarbons and cannot be classified in HTS subheading 3824.90.55, it should be classified in HTS subheading 3824.90.92.
CBP now proposes that pursuant to GRI 1, through the application of GRI 6, FC-77 Fluorinert is classified in HTS 3824.90.92, which provides for: "Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included: Other: Other: Other: Other: Other."
Proposed: 3824.90.92, 5% ; Current: 3824.90.55, 3.7%
July 17, 2009 CBP Bulletin (Vol. 43, No. 28) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/