CBP Issues Final Determination on Classification of CN-9 Solution
U.S. Customs and Border Protection has issued its final determination regarding a petition filed pursuant to 19 CFR 177.13 by Yara North America, Inc. to reconcile inconsistent tariff classification decisions by CBP officials at the ports of Long Beach and Baltimore for CN-9 Solution. According to CBP’s final determination, the Port of Los Beach correctly classified the CN-9 solution as a fertilizer.
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(19 CFR 177.13 allows interested parties such as importers to petition Customs Headquarters to reconcile certain decisions1 made by CBP officials at one field location that are inconsistent with decisions being made by CBP officials at another location for the same, or substantially similar merchandise.)
CBP Says CN-9 Solution is Classified as a Fertilizer in HTS 3102.60.00
According to CBP, CN-9 is a hydrated ammonium calcium nitrate double salt that is used as a fertilizer. While it can also be used for water treatment, its primary use is as a fertilizer and its chemical structure is identical for both uses. As a result, it is described by the terms of HTS heading 3102 as a nitrogenous mineral fertilizer. (Furthermore, Legal Note 2 to HTS Chapter 31 specifically lists this merchandise: double salts, whether or not pure, or mixtures of calcium nitrate and ammonium nitrate. In addition, Explanatory Note (EN) 31.02 confirms this interpretation.) CBP states that the subject merchandise is a fertilizer with a secondary use in waste water treatment and that this alternate function is explicitly allowed by EN 31.02. CBP determines that the correct classification is HTS 3102.60.00.
CBP states that this determination applies to all entries of the described CN-9 solution for which liquidation was not finalized as of December 16, 2011.
Long Beach Port Liquidated CN-9 as Fertilizers
As an importer of fertilizers, Yara2 had received inconsistent classification decisions on CN-9 Solution at different ports. Yara entered the product at the Port of Long Beach between January 24, 2009 and September 8, 2009, and at the Port of Baltimore on April 20, 2011, under subheading 3102.60.00 (free) as "Mineral or chemical fertilizers, nitrogenous: Double salts and mixtures of calcium nitrate and ammonium nitrate." The Port of Long Beach liquidated the CN-9 Solution as entered.3
Baltimore Port Liquidated CN-9 as Other Salts
However, the Port of Baltimore liquidated the product under subheading 2842.90.90 (3.3%) as "Other salts of inorganic acids or peroxoacids (including aluminosilicates whether or not chemically defined), other than azides."4
119 CFR 177.13 further states that the decisions are (i) those described in 19 USC 1514(a) (errors and Customs decisions eligible for protest) made with respect to the same, or substantially similar, merchandise and (ii) repeated decisions to conduct intensified inspections or examinations of merchandise at ports of entry.
2Yara North America, Inc. is part of Yara International ASA, a global firm specializing in agricultural products and environmental protection agents and is a supplier of mineral fertilizers. CN-9 is a hydrated ammonium calcium nitrate double salt that is primarily used as a fertilizer but is also used for waste water treatment.
3The Port of Long beach cited Legal Note 2(a)(v) to HTS Chapter 31, which states that heading 3102 applies only to certain goods, provided that they are not put up in the forms or packages described in heading 3105. These goods include those which answer to the description: double salts (whether or not pure) or mixtures of calcium nitrate and ammonium nitrate.
4The Port of Baltimore cited Legal Note 5 to HTS Chapter 28, which states that headings 2826 to 2842 apply only to metal or ammonium salts or peroxysalts and, except where the context otherwise requires, double or complex salts are to be classified in heading 2842.
CBP Contact -- Tamar Anolic (202) 325-0036
(D/N USCBP-2011-0025)