April 2018 — Question 64
The chemical Rutoside will be imported into the U.S. from Germany in powder form, packed in drums. The tariff number is 2938.10.00.00, which qualifies for use of the Special Program Indicator (SPI) K. What other reference must comply to provide for a free rate of duty?
- ANote 3 for HTS Chapter 29
- BGeneral Note (GN) 5
- CPharmaceutical Appendix✓ CBP's answer
- DChemical Appendix
- ENo other reference is required with SPI K
Why this answer
The special program indicator K flags duty-free treatment for pharmaceutical products under General Note 13, HTSUS. That note grants the free rate only to products enumerated in the Pharmaceutical Appendix to the tariff schedule, so seeing K in the special subcolumn is not self-executing: the imported chemical, here Rutoside of 2938.10.00, must actually appear in the Pharmaceutical Appendix to claim the free rate. The Chemical Appendix is the tempting wrong answer because it is the parallel appendix referenced by other tariff provisions for industrial chemicals, but it is not the list General Note 13 incorporates for SPI K. Watch for: Grabbing the Chemical Appendix because the product is a chemical, when SPI K keys to the Pharmaceutical Appendix.
Original CBLE Simulator explanation — the question and key above are CBP's; this analysis is ours. Verify against the current edition before relying on it in practice.
CBP's cited authority
Answer and citations as published in CBP's official answer key for the April 2018 examination.
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