L-Carnatine a Vitamin, Not Classified as a 'Vitamin,' Says CIT
L-carnitine vitamins imported by Sigma-Tau are classifiable as ammonium salts rather than as vitamins, and are ineligible for duty free treatment because they are found in only one table of the HTS Pharmaceutical Appendix, said the Court of International Trade on Sept. 3. Faced with a decision on whether the tariff heading for vitamins describes a specific product by name or the way a product is used, CIT ruled that the heading includes components of both, to the detriment of Sigma-Tau’s case.
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At issue were two L-carnitine products: (1) Acetyl LCarnitine Taurinate Hydrochloride with 1.5% Silica and (2) Glycine Propionyl L-Carnitine Hydrochloride USP with 1.5% Silica. Sigma-Tau said that they should been classified under a duty free provision for vitamins under heading 2936. After initially liquidating them under chapter 38, CBP now argued that they should be classified as quaternary ammonium salts under heading 2923, in a subheading dutiable at 6.2%. The agency said L-carnitine isn’t a vitamin because vitamins are not produced in the body and must come from outside sources, whereas the normal human body produces enough L-carnitine on its own.
The Explanatory Notes initially appeared to support CBP’s case, setting forth that vitamins “cannot be synthesized by the human body.” However, Vitamin D is synthesized by the body, yet is given its own subheading in the U.S. tariff schedule within the heading for vitamins. Given the apparent conflict between the U.S. HTS and the World Customs Organization’s Explanatory Notes, CIT was forced to disregard the international source and find L-carnitine, though able to be synthesized by humans, is a vitamin in the same vein as vitamin D. L-carnitine is thus both a vitamin and a quaternary ammonium salt, said the court.
A general rule of tariff classification is that provisions describing a given product’s “use” are more specific than “eo nomine” provisions describing a product by name. However, heading 2936 includes both “vitamins and provitamins,” which describe a product by name, as well as “derivatives used primarily as vitamins,” which refer to use. Dividing the terms of the heading into its two components, CIT ruled that heading 2936 describes L-carnitine by name as a vitamin or provitamin. With both heading 2923 for quaternary ammonium salts and 2936 for vitamins describing Sigma-Tau’s product, CIT found the former more specific and ruled the products classifiable under heading 2923.
Sigma-Tau said its products should still enter duty free under heading K2923 as pharmaceutical products. However, though “levocarnitine” is listed in table 1 of the HTS Pharmaceutical Appendix, the suffix “taurinate” and the prefix “glycine” are not listed in table 2. To receive duty free treatment, General Note 13 requires that the product be listed in table 1 and also any of the prefixes and suffixes associated with the product be listed in table 2. Duty-free treatment is therefore unavailable to Sigma-Tau’s glycine propionyl l-carnintine and acetyle l-carnitine taurinate, held the court.
(Sigma-Tau HealthScience, Inc. v. U.S., Slip Op. 15-102, CIT # 11-00093, dated 09/03/15, Judge Carman)
(Attorneys: Leslie Glick of Porter Wright for plaintiff Sigma-Tau Healthscience; Alexander Vanderweide for defendant U.S. government.)