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Aug. 22 CBP Bulletin Modifies Rulings on the NAFTA Eligibility of Recovered Refrigerant Gas

In the Aug. 22 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No. 35), CBP published a notice of its modification of rulings and revocation of treatment regarding the tariff classification of recovered refrigerant gas for preferential tariff treatment under NAFTA..

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Modification Is Effective Oct. 22

CBP is modifying this ruling, as well as any treatment CBP previously accorded to substantially identical transactions, effective for merchandise entered or withdrawn from warehouse for consumption on or after Oct. 22.

Recovered Refrigerant Gas

Item: Refrigerant Gas Recovered in Canada. Used refrigeration equipment containing chlorodifluoromethane (R-22) is imported from unknown countries to Canada, where the refrigerant is then extracted into 1000 lb. cylinders and imported into the United States.
New Ruling: HQ H172315, modifies NY N161355 (2011)
Old HTS/Rate: 2903.49.9010, 3.7% (Halogenated derivatives of acyclic hydrocarbons containing two or more different halogens: Other: Other)
New HTS/Rate: 2903.49.9010, (Free) (Halogenated derivatives of acyclic hydrocarbons containing two or more different halogens: Other: Other) (“Special” “CA” rate of duty)
Reason: CBP said for implementing the rules of origin provisions of General Note 12, HTSUS, and Chapter 4 of the NAFTA, except as provided in 181.132(b), disassembly is considered to be production and a component recovered from a used good disassembled in the territory of a party will be considered to be an originating good provided that the recovered component satisfies all requirements. CBP also found Canada is the last country in which the good underwent processing other than minor processing, so the country of origin for marking and duty purposes would be Canada, making it eligible for NAFTA treatment.

(See ITT's Online Archives 12060423 for summary of the proposed modification of the ruling.)