July 31, 1997
TARIFF NO.: 2915.12.0000
Ms. Teresa A. Gleason Baker & Mc Kenzie 815 Connecticut Avenue, N.W.
Washington, D.C. 20006-4078
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Cesium Formate Solution from Canada; Article 509
Dear Ms. Gleason:
In your letter dated June 6, 1997, on behalf of Cabot Corporation, you requested a ruling on the status of Cesium Formate Solution from Canada under the NAFTA.
Cesium Formate Solution is composed of 78% cesium formate, 13% water and 9% by-products from the manufacturing process. Cesium Formate Solution is a saturated monocarboxylic acid salt of formic acid. The Cesium Formate Solution is produced from pollucite ore, water, calcium oxide, propane, sulfuric acid, formic acid, barium carbonate and barium hydroxide. The formic acid and barium carbonate are of German origin. The barium hydroxide is of Italian origin. The other components are of Canadian origin.
The applicable tariff provision for the Cesium Formate Solution will be 2915.12.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for salts of formic acid. The general rate of duty will be 5.5 percent ad valorem.
Each of the non-originating materials used to make the Cesium Formate Solution has satisfied the changes in tariff classification required under the HTSUSA General Note 12(t)/29.25 B. The Cesium Formate Solution will also be subject to a Regional Value Content (RVC) requirement of 60% under the Transaction Value Method or 50% under the Net Cost Method as required under the rule applicable to the Cesium Formate Solution. Based on the estimated figures submitted in your request, the Cesium Formate Solution meets both the RVC requirements under the Transaction Value Method and under the Net Cost Method. The actual cost figures will be subject to verification of the RVC requirements at the time of entry. Assuming the goods are eligible for preferential treatment under the NAFTA, the merchandise will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Stephanie Joseph at 212-466-5768.
Gwenn Klein Kirschner Chief, Special Products Branch National Commodity Specialist Division