80_FR_57814 80 FR 57629 - Notice of Issuance of Final Determination Concerning Certain Analytical-Grade Acetonitrile

80 FR 57629 - Notice of Issuance of Final Determination Concerning Certain Analytical-Grade Acetonitrile

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 80, Issue 185 (September 24, 2015)

Page Range57629-57631
FR Document2015-24288

This document provides notice that U.S. Customs and Border Protection (``CBP'') has issued a final determination concerning the country of origin of certain analytical-grade acetonitrile. Based upon the facts presented, CBP has concluded that the country of origin of the analytical-grade acetonitrile is the country of origin of the crude acetonitrile for purposes of U.S. Government procurement.

Federal Register, Volume 80 Issue 185 (Thursday, September 24, 2015)
[Federal Register Volume 80, Number 185 (Thursday, September 24, 2015)]
[Notices]
[Pages 57629-57631]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-24288]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Notice of Issuance of Final Determination Concerning Certain 
Analytical-Grade Acetonitrile

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security.

ACTION: Notice of final determination.

-----------------------------------------------------------------------

SUMMARY: This document provides notice that U.S. Customs and Border 
Protection (``CBP'') has issued a final determination concerning the 
country of origin of certain analytical-grade acetonitrile. Based upon 
the facts presented, CBP has concluded that the country of origin of 
the analytical-grade acetonitrile is the country of origin of the crude 
acetonitrile for purposes of U.S. Government procurement.

DATES: The final determination was issued on September 18, 2015. A copy 
of the final determination is attached. Any party-at-interest, as 
defined in 19 CFR 177.22(d), may seek judicial review of this final 
determination within October 26, 2015.

FOR FURTHER INFORMATION CONTACT: Ross Cunningham, Valuation and Special 
Programs Branch, Regulations and Rulings, Office of International Trade 
(202) 325-0034.

SUPPLEMENTARY INFORMATION: Notice is hereby given that on September 18, 
2015 pursuant to subpart B of Part 177, U.S. Customs and Border 
Protection Regulations (19 CFR part 177, subpart B), CBP issued a final 
determination concerning the country of origin of certain analytical-
grade acetonitrile, which may be offered to the U.S. Government under 
an undesignated government procurement contract. This final 
determination, HQ H265712, was issued under procedures set forth at 19 
CFR part 177, subpart B, which implements Title III of the Trade 
Agreements Act of 1979, as amended (19 U.S.C. 2511-18). In the final 
determination, CBP concluded that the processing in the United States 
does not result in a substantial transformation. Therefore, the country 
of origin of the analytical-grade acetonitrile is the country of origin 
of the crude acetonitrile for purposes of U.S. Government procurement.
    Section 177.29, CBP Regulations (19 CFR 177.29), provides that a 
notice of final determination shall be published in the Federal 
Register within 60 days of the date the final determination is issued. 
Section 177.30, CBP Regulations (19 CFR 177.30), provides that any 
party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial 
review of a final determination within 30 days of publication of such 
determination in the Federal Register.

    Dated: September 18, 2015.
Harold Singer,
Acting Executive Director, Regulations and Rulings, Office of 
International Trade.
HQ H265712

September 18, 2015

OT:RR:CTF:VS H265712 RMC

CATEGORY: Country of Origin

David R. Stepp

Bryan Cave LLP

120 Broadway, Suite 300, Santa Monica, CA 90401-2386
Re: U.S. Government Procurement; Country of Origin of Acetonitrile; 
Substantial Transformation

    Dear Mr. Stepp: This is in response to your letter dated April 1, 
2015, requesting a country-of-origin determination on behalf of the 
Sigma-Aldrich Corporation (``Sigma-Aldrich''). You state that Sigma-
Aldrich wishes to sell ``analytical-grade acetonitrile'' to the U.S. 
Government and thus seeks a determination that the country of origin of 
its product will be the United States.

[[Page 57630]]

We note that Sigma-Aldrich is a party-at-interest within the meaning of 
19 CFR 177.22(d)(1) and is entitled to request this final 
determination. A meeting was held by teleconference on August 15, 2015.

FACTS:

    Analytical-grade acetonitrile is a purified chemical that Sigma-
Aldrich plans to manufacture in the United States from crude, 
commercial-grade acetonitrile imported from China and other countries. 
You state that commercial-grade acetonitrile is most useful as an 
industrial-grade solvent. Because it is produced as a byproduct of 
other industrial processes, you state that it contains a relatively low 
level of ``pure acetonitrile.'' You state that commercial-grade 
acetonitrile ``can be less than 95%'' and that it contains contaminants 
such as water.
    As its name suggests, purified analytical-grade acetonitrile 
contains fewer contaminants and may be up to 99.5% pure. In its 
purified, analytical grades, acetonitrile is suitable for use in 
chemical testing instruments such as Liquid Chromatography-Mass 
Spectrometry and Ultra-Performance Liquid Chromatography. These 
instruments are used for analyzing chemicals for pharmaceutical drug 
development and production, food safety, medical clinical testing, and 
environmental testing. You state that commercial-grade acetonitrile is 
unsuitable for these applications because its impurities would cause 
false readings and damage the testing equipment.
    Sigma-Aldrich produces several analytical grades of purified 
acetonitrile, including CHROMASOLV[supreg] Plus for HPLC; MC-MS 
CHROMASOLV[supreg]; LC-MS Ultra CHROMASOLV[supreg], tested for UHPLC-
MS; and CHROMASOLV[supreg] Plus, for HPLC. Sigma-Aldrich will purify 
the imported commercial-grade acetonitrile using the following 
processes. The steps are set forth in general terms in accordance with 
your request to exclude confidential information:
    1. Freezing the crude product;
    2. Extracting the pure acetonitrile from the frozen mass;
    3. Analyzing the purified acetonitrile output product and the 
correct purity level for the grade being produced;
    4. Packaging the purified acetonitrile, which requires:
    a. Special glass bottles
    b. Rinsing the bottles
    c. Filling the bottles
    You state that the process is lengthy and requires sophisticated, 
expensive equipment and highly educated personnel. The steps described 
above take about four days for a ``typical batch'' of 20,000 liters. 
Scientists, all of whom possess at least a Bachelor of Science degree, 
perform or oversee the production process which uses a specialized unit 
and precision testing equipment.

ISSUE:

    Whether the purification process described above will 
``substantially transform'' the product such that the country of origin 
of the finished analytical-grade acetonitrile will be the United States 
for U.S. Government procurement purposes.

LAW AND ANALYSIS:

    Pursuant to Subpart B of Part 177, 19 CFR 177.21 et seq., which 
implements Title III of the Trade Agreements Act of 1979, as amended 
(19 U.S.C. 2511 et seq.), CBP issues country-of-origin advisory rulings 
and final determinations as to whether an article is a product of a 
designated country for the purpose of granting waivers of certain ``Buy 
American'' restrictions on U.S. Government procurement.
    In rendering final determinations for purposes of U.S. Government 
procurement, CBP applies the provisions of Subpart B of Part 177 
consistent with the Federal Procurement Regulations. See 19 CFR 177.21. 
In this regard, CBP recognizes that the Federal Acquisition Regulations 
restrict the U.S. Government's purchase of products to U.S.-made or 
designated country end products for acquisitions subject to the Trade 
Agreements Act. See 48 CFR 25.403(c)(1). The Federal Acquisition 
Regulations define ``U.S.-made end product'' as ``an article that is 
mined, produced, or manufactured in the United States or that is 
substantially transformed in the United States into a new and different 
article of commerce with name, character, or use distinct from that of 
the article or articles from which it was transformed.'' See 48 C.F.R 
Sec.  25.003.
    You argue that the imported commercial-grade acetonitrile will be 
substantially transformed when Sigma-Aldrich purifies it into 
analytical-grade acetonitrile. Therefore, in your view, the finished 
product will be eligible for U.S. Government procurement because its 
country of origin will be the United States.
    A substantial transformation occurs when an article is used in a 
manufacturing process that results in a new article that has a new 
name, character or use different from that of the original imported 
article. In previous rulings, ``CBP has consistently held that refining 
or purification of a crude substance does not generally effect a 
substantial transformation that results in a different article of 
commerce with a new name, character, or use''. Headquarters Ruling 
Letter (``HQ'') H113256, dated December 27, 2010. For example, CBP has 
held that refining linseed oil, in H554664, dated October 29, 1987, and 
Octamine (an aviation lubricant), in HQ 556143, dated March 2, 1992, 
did not result in an article with a new name, use, or character.
    You argue that the acetonitrile purification processes will result 
in a substantial transformation because the finished product will have 
a new name, character, and use. Although a change in a product's name 
is the weakest evidence of a substantial transformation, as noted in 
Uniroyal, Inc. v. United States, 3 CIT 220 (1982), aff'd 702 F.2d 1022 
(Fed. Cir. 1983), you point that ``[t]he imported product is referred 
to as `crude' or `commercial grade,' whereas the processed product is 
referred to as `purified' and `analytical grade.''' In both cases, 
however, the name of the product remains acetonitrile. The adjectives 
``crude,'' ``commercial grade,'' ``purified,'' and ``analytical'' 
qualify the noun ``acetonitrile.'' As we have previously noted, the 
addition of an adjective in front of a product name is generally not 
persuasive. See HQ 731731, dated February 23, 1989. We therefore find 
that the purification process does not result in an article with a new 
name.
    You also argue that the processed acetonitrile has a new character 
compared to the crude acetonitrile. You state that the imported crude 
acetonitrile has the character of an industrial manufacturing 
byproduct, whereas the purified product has the character of a 
laboratory reagent. CBP's examination of character, however, focuses on 
the chemical and physical properties of the product itself. See HQ 
571975, dated April 3, 2002. CBP's Laboratories and Scientific Services 
Directorate informed us that no chemical reactions or physical changes 
occur in Sigma-Aldrich's processing. Instead, the processing only 
removes impurities in the acetonitrile. We therefore find that the 
purification process does not result in an article with a different 
character.
    While the finished product will not have a different name or 
character, it will have a different use. The imported crude product can 
be used as a solvent for industrial processes but not in precision 
testing applications because impurities can damage the testing 
equipment or produce measurement errors. Although the finished product 
could also be used as a solvent, you

[[Page 57631]]

state that this is unlikely because it would be ``cost prohibitive.'' 
Therefore, you state that its likely use is confined to analytical 
testing.
    In support of your argument that a substantial transformation will 
take place when the crude acetonitrile is purified into analytical-
grade acetonitrile, you analogize to rulings HQ 563301, dated August 
26, 2005 and HQ 731731, dated February 23, 1989. In HQ 731731, we found 
that a substantial transformation occurred when raw powdered vancomycin 
hydrochloride was processed into a finished antibiotic drug capable of 
intravenous use. As imported, the raw chemical was unfit for medical 
use. Applying the three substantial transformation factors, we found 
that the name changed to ``sterile'' vancomycin hydrochloride, the use 
changed to an injectable antibiotic, and the character changed to a 
purified solution of uniform potency levels. Accordingly, we found that 
the chemical was substantially transformed. Similarly, in HQ 563301 we 
found that a substantial transformation occurred when bulk parathormone 
was processed into finished parathormone cartridges. We held that the 
``extensive processing transforms the raw parathormone from an 
unstable, non-sterile, frozen material unsuitable for human use into a 
pharmaceutical agent ready for human use.''
    A common theme in HQ 563301 and HQ 731731 is the production of a 
medicine from chemicals that were previously unfit for human 
consumption. In both cases, we found that--along with the required 
change in name and character--this conversion from raw chemicals to 
medication represented a significant change in use. Here, aside from 
the fact that no change in name or character will occur, the production 
of analytical-grade acetonitrile results in a less significant change 
in use, namely, from one type of industrial use to another.
    We believe that this case is more analogous to cases involving the 
refining and purification of chemicals than to those involving the 
production of medicine. As noted above, CBP has consistently held that 
refining or purification of a crude substance does not generally effect 
a substantial transformation. You attempt to distinguish one of these 
cases, H566143, dated March 2, 1992, by pointing out that there was no 
substantial transformation because ``both the precursor and purified 
substances had the same essential character as aviation lubricants of 
merely different grades and were therefore not different articles of 
commerce, and both substances had the same chemical structures.'' Yet 
here too the crude and purified acetonitrile will have the same 
essential character as acetonitrile and you have provided no evidence 
that the substances will have a different chemical structure. 
Therefore, we are ``bound to follow the well-settled principle of 
Customs law that the mere refining of a chemical does not result in a 
substantial transformation of the imported chemicals into a new and 
different article of commerce with a new name, character, and use.'' HQ 
556143, dated March 2, 1992.

HOLDING:

    The purification process described above will not substantially 
transform the acetonitrile, and the country of origin of the finished 
analytical-grade acetonitrile will not be the United States for U.S. 
Government procurement purposes.

Sincerely,
Harold Singer,
Acting Executive Director, Regulations & Rulings, Office of 
International Trade.
[FR Doc. 2015-24288 Filed 9-23-15; 8:45 am]
BILLING CODE P



                                                                              Federal Register / Vol. 80, No. 185 / Thursday, September 24, 2015 / Notices                                            57629

                                               API chapters                          Title                    AmSpec Services, LLC is accredited                  by the U.S. Customs and Border
                                                                                                            for the following laboratory analysis                 Protection Laboratory Methods (CBPL)
                                              17 .................       Maritime Measurement.              procedures and methods for petroleum                  and American Society for Testing and
                                                                                                            and certain petroleum products set forth              Materials (ASTM):

                                                  CBPL No.                    ASTM                                                                      Title

                                              27–01 ..............        D287               Standard Test Method for API Gravity of crude Petroleum and Petroleum Products.
                                              27–02 ..............        D1298              Standard Practice for Density, Relative Density (Specific Gravity), or API Gravity of Crude Petroleum and Liq-
                                                                                               uid Petroleum Products by Hydrometer Meter.
                                              27–04     ..............    D95                Standard Test Method for Water in Petroleum Products and Bituminous Materials by Distillation.
                                              27–05     ..............    D4928              Standard Test Method for Water in Crude Oils by Coulometric Karl Fischer Titration.
                                              27–06     ..............    D473               Standard Test Method for Sediment in Crude Oils and Fuel Oils by the Extraction Method.
                                              27–08     ..............    D86                Standard Test Method for Distillation of Petroleum Products.
                                              27–11     ..............    D445               Standard Test Method for Kinematic Viscosity of Transparent and Opaque Liquids.
                                              27–13     ..............    D4294              Standard Test Method for Sulfur in Petroleum and Petroleum Products by Energy-Dispersive X-ray Fluores-
                                                                                               cence Spectrometry
                                              27–20 ..............        D4057              Standard Practice for Manual Sampling of Petroleum and Petroleum Products.
                                              27–48 ..............        D4052              Standard Test Method for Density and Relative Density of Liquids by Digital Density Meter.
                                              27–50 ..............        D93                Standard Test Methods for Flash-Point by Pensky-Martens Closed Cup Tester.
                                              27–53 ..............        D2709              Standard Test Method for Water and Sediment in Middle Distillate Fuels by Centrifuge.
                                              27–54 ..............        D1796              Standard Test Method for Water and Sediment in Fuel Oils by the Centrifuge Method.
                                              27–58 ..............        D5191              Standard Test Method For Vapor Pressure of Petroleum Products.
                                              Pending ...........         D97                Standard Test Method for Pour Point of Petroleum Products.
                                              Pending ...........         D2500              Standard Test Method for Cloud Point of Petroleum Products.



                                                Anyone wishing to employ this entity                        SUMMARY:    This document provides                    Therefore, the country of origin of the
                                              to conduct laboratory analyses and                            notice that U.S. Customs and Border                   analytical-grade acetonitrile is the
                                              gauger services should request and                            Protection (‘‘CBP’’) has issued a final               country of origin of the crude
                                              receive written assurances from the                           determination concerning the country of               acetonitrile for purposes of U.S.
                                              entity that it is accredited or approved                      origin of certain analytical-grade                    Government procurement.
                                              by the U.S. Customs and Border                                acetonitrile. Based upon the facts                       Section 177.29, CBP Regulations (19
                                              Protection to conduct the specific test or                    presented, CBP has concluded that the                 CFR 177.29), provides that a notice of
                                              gauger service requested. Alternatively,                      country of origin of the analytical-grade             final determination shall be published
                                              inquiries regarding the specific test or                      acetonitrile is the country of origin of              in the Federal Register within 60 days
                                              gauger service this entity is accredited                      the crude acetonitrile for purposes of                of the date the final determination is
                                              or approved to perform may be directed                        U.S. Government procurement.                          issued. Section 177.30, CBP Regulations
                                              to the U.S. Customs and Border                                DATES: The final determination was                    (19 CFR 177.30), provides that any
                                              Protection by calling (202) 344–1060.                         issued on September 18, 2015. A copy                  party-at-interest, as defined in 19 CFR
                                              The inquiry may also be sent to                               of the final determination is attached.               177.22(d), may seek judicial review of a
                                              CBPGaugersLabs@cbp.dhs.gov. Please                            Any party-at-interest, as defined in 19               final determination within 30 days of
                                              reference the Web site listed below for                       CFR 177.22(d), may seek judicial review               publication of such determination in the
                                              a complete listing of CBP approved                            of this final determination within                    Federal Register.
                                              gaugers and accredited laboratories.                          October 26, 2015.                                       Dated: September 18, 2015.
                                              http://www.cbp.gov/about/labs-                                FOR FURTHER INFORMATION CONTACT: Ross                 Harold Singer,
                                                scientific/commercial-gaugers-and-                          Cunningham, Valuation and Special                     Acting Executive Director, Regulations and
                                                laboratories                                                Programs Branch, Regulations and                      Rulings, Office of International Trade.
                                                                                                            Rulings, Office of International Trade                HQ H265712
                                                Dated: September 10, 2015.
                                                                                                            (202) 325–0034.                                       September 18, 2015
                                              Ira S. Reese,
                                                                                                            SUPPLEMENTARY INFORMATION: Notice is                  OT:RR:CTF:VS H265712 RMC
                                              Executive Director, Laboratories and                          hereby given that on September 18,
                                              Scientific Services Directorate.                                                                                    CATEGORY: Country of Origin
                                                                                                            2015 pursuant to subpart B of Part 177,
                                              [FR Doc. 2015–24229 Filed 9–23–15; 8:45 am]                   U.S. Customs and Border Protection                    David R. Stepp
                                              BILLING CODE 9111–14–P                                        Regulations (19 CFR part 177, subpart                 Bryan Cave LLP
                                                                                                            B), CBP issued a final determination                  120 Broadway, Suite 300, Santa Monica,
                                                                                                            concerning the country of origin of                        CA 90401–2386
                                              DEPARTMENT OF HOMELAND                                        certain analytical-grade acetonitrile,                Re: U.S. Government Procurement;
                                              SECURITY                                                      which may be offered to the U.S.                           Country of Origin of Acetonitrile;
                                                                                                            Government under an undesignated                           Substantial Transformation
                                              U.S. Customs and Border Protection                                                                                    Dear Mr. Stepp: This is in response to
                                                                                                            government procurement contract. This
                                              Notice of Issuance of Final                                   final determination, HQ H265712, was                  your letter dated April 1, 2015,
                                              Determination Concerning Certain                              issued under procedures set forth at 19               requesting a country-of-origin
tkelley on DSK3SPTVN1PROD with NOTICES




                                              Analytical-Grade Acetonitrile                                 CFR part 177, subpart B, which                        determination on behalf of the Sigma-
                                                                                                            implements Title III of the Trade                     Aldrich Corporation (‘‘Sigma-Aldrich’’).
                                              AGENCY:  U.S. Customs and Border                              Agreements Act of 1979, as amended                    You state that Sigma-Aldrich wishes to
                                              Protection, Department of Homeland                            (19 U.S.C. 2511–18). In the final                     sell ‘‘analytical-grade acetonitrile’’ to
                                              Security.                                                     determination, CBP concluded that the                 the U.S. Government and thus seeks a
                                                                                                            processing in the United States does not              determination that the country of origin
                                              ACTION: Notice of final determination.
                                                                                                            result in a substantial transformation.               of its product will be the United States.


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                                              57630                    Federal Register / Vol. 80, No. 185 / Thursday, September 24, 2015 / Notices

                                              We note that Sigma-Aldrich is a party-                  take about four days for a ‘‘typical                  crude substance does not generally
                                              at-interest within the meaning of 19 CFR                batch’’ of 20,000 liters. Scientists, all of          effect a substantial transformation that
                                              177.22(d)(1) and is entitled to request                 whom possess at least a Bachelor of                   results in a different article of commerce
                                              this final determination. A meeting was                 Science degree, perform or oversee the                with a new name, character, or use’’.
                                              held by teleconference on August 15,                    production process which uses a                       Headquarters Ruling Letter (‘‘HQ’’)
                                              2015.                                                   specialized unit and precision testing                H113256, dated December 27, 2010. For
                                                                                                      equipment.                                            example, CBP has held that refining
                                              FACTS:                                                                                                        linseed oil, in H554664, dated October
                                                 Analytical-grade acetonitrile is a                   ISSUE:
                                                                                                                                                            29, 1987, and Octamine (an aviation
                                              purified chemical that Sigma-Aldrich                       Whether the purification process                   lubricant), in HQ 556143, dated March
                                              plans to manufacture in the United                      described above will ‘‘substantially                  2, 1992, did not result in an article with
                                              States from crude, commercial-grade                     transform’’ the product such that the                 a new name, use, or character.
                                              acetonitrile imported from China and                    country of origin of the finished                        You argue that the acetonitrile
                                              other countries. You state that                         analytical-grade acetonitrile will be the             purification processes will result in a
                                              commercial-grade acetonitrile is most                   United States for U.S. Government                     substantial transformation because the
                                              useful as an industrial-grade solvent.                  procurement purposes.                                 finished product will have a new name,
                                              Because it is produced as a byproduct                   LAW AND ANALYSIS:                                     character, and use. Although a change
                                              of other industrial processes, you state                                                                      in a product’s name is the weakest
                                              that it contains a relatively low level of                 Pursuant to Subpart B of Part 177, 19              evidence of a substantial transformation,
                                              ‘‘pure acetonitrile.’’ You state that                   CFR 177.21 et seq., which implements                  as noted in Uniroyal, Inc. v. United
                                              commercial-grade acetonitrile ‘‘can be                  Title III of the Trade Agreements Act of              States, 3 CIT 220 (1982), aff’d 702 F.2d
                                              less than 95%’’ and that it contains                    1979, as amended (19 U.S.C. 2511 et                   1022 (Fed. Cir. 1983), you point that
                                              contaminants such as water.                             seq.), CBP issues country-of-origin                   ‘‘[t]he imported product is referred to as
                                                 As its name suggests, purified                       advisory rulings and final                            ‘crude’ or ‘commercial grade,’ whereas
                                              analytical-grade acetonitrile contains                  determinations as to whether an article               the processed product is referred to as
                                              fewer contaminants and may be up to                     is a product of a designated country for              ‘purified’ and ‘analytical grade.’’’ In
                                              99.5% pure. In its purified, analytical                 the purpose of granting waivers of                    both cases, however, the name of the
                                              grades, acetonitrile is suitable for use in             certain ‘‘Buy American’’ restrictions on              product remains acetonitrile. The
                                              chemical testing instruments such as                    U.S. Government procurement.                          adjectives ‘‘crude,’’ ‘‘commercial grade,’’
                                              Liquid Chromatography-Mass                                 In rendering final determinations for              ‘‘purified,’’ and ‘‘analytical’’ qualify the
                                              Spectrometry and Ultra-Performance                      purposes of U.S. Government                           noun ‘‘acetonitrile.’’ As we have
                                              Liquid Chromatography. These                            procurement, CBP applies the                          previously noted, the addition of an
                                              instruments are used for analyzing                      provisions of Subpart B of Part 177                   adjective in front of a product name is
                                              chemicals for pharmaceutical drug                       consistent with the Federal Procurement               generally not persuasive. See HQ
                                              development and production, food                        Regulations. See 19 CFR 177.21. In this               731731, dated February 23, 1989. We
                                              safety, medical clinical testing, and                   regard, CBP recognizes that the Federal               therefore find that the purification
                                              environmental testing. You state that                   Acquisition Regulations restrict the U.S.             process does not result in an article with
                                              commercial-grade acetonitrile is                        Government’s purchase of products to                  a new name.
                                              unsuitable for these applications                       U.S.-made or designated country end                      You also argue that the processed
                                              because its impurities would cause false                products for acquisitions subject to the              acetonitrile has a new character
                                              readings and damage the testing                         Trade Agreements Act. See 48 CFR                      compared to the crude acetonitrile. You
                                              equipment.                                              25.403(c)(1). The Federal Acquisition                 state that the imported crude
                                                 Sigma-Aldrich produces several                       Regulations define ‘‘U.S.-made end                    acetonitrile has the character of an
                                              analytical grades of purified acetonitrile,             product’’ as ‘‘an article that is mined,              industrial manufacturing byproduct,
                                              including CHROMASOLV® Plus for                          produced, or manufactured in the                      whereas the purified product has the
                                              HPLC; MC–MS CHROMASOLV®; LC–                            United States or that is substantially                character of a laboratory reagent. CBP’s
                                              MS Ultra CHROMASOLV®, tested for                        transformed in the United States into a               examination of character, however,
                                              UHPLC–MS; and CHROMASOLV® Plus,                         new and different article of commerce                 focuses on the chemical and physical
                                              for HPLC. Sigma-Aldrich will purify the                 with name, character, or use distinct                 properties of the product itself. See HQ
                                              imported commercial-grade acetonitrile                  from that of the article or articles from             571975, dated April 3, 2002. CBP’s
                                              using the following processes. The steps                which it was transformed.’’ See 48 C.F.R              Laboratories and Scientific Services
                                              are set forth in general terms in                       § 25.003.                                             Directorate informed us that no
                                              accordance with your request to exclude                    You argue that the imported                        chemical reactions or physical changes
                                              confidential information:                               commercial-grade acetonitrile will be                 occur in Sigma-Aldrich’s processing.
                                                 1. Freezing the crude product;                       substantially transformed when Sigma-                 Instead, the processing only removes
                                                 2. Extracting the pure acetonitrile                  Aldrich purifies it into analytical-grade             impurities in the acetonitrile. We
                                              from the frozen mass;                                   acetonitrile. Therefore, in your view, the            therefore find that the purification
                                                 3. Analyzing the purified acetonitrile               finished product will be eligible for U.S.            process does not result in an article with
                                              output product and the correct purity                   Government procurement because its                    a different character.
                                              level for the grade being produced;                     country of origin will be the United                     While the finished product will not
                                                 4. Packaging the purified acetonitrile,              States.                                               have a different name or character, it
                                              which requires:                                            A substantial transformation occurs                will have a different use. The imported
tkelley on DSK3SPTVN1PROD with NOTICES




                                                 a. Special glass bottles                             when an article is used in a                          crude product can be used as a solvent
                                                 b. Rinsing the bottles                               manufacturing process that results in a               for industrial processes but not in
                                                 c. Filling the bottles                               new article that has a new name,                      precision testing applications because
                                                 You state that the process is lengthy                character or use different from that of               impurities can damage the testing
                                              and requires sophisticated, expensive                   the original imported article. In                     equipment or produce measurement
                                              equipment and highly educated                           previous rulings, ‘‘CBP has consistently              errors. Although the finished product
                                              personnel. The steps described above                    held that refining or purification of a               could also be used as a solvent, you


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                                                                            Federal Register / Vol. 80, No. 185 / Thursday, September 24, 2015 / Notices                                                     57631

                                              state that this is unlikely because it                       not generally effect a substantial                    SUMMARY:  Notice is hereby given,
                                              would be ‘‘cost prohibitive.’’ Therefore,                    transformation. You attempt to                        pursuant to CBP regulations, that
                                              you state that its likely use is confined                    distinguish one of these cases, H566143,              Saybolt LP has been approved to gauge
                                              to analytical testing.                                       dated March 2, 1992, by pointing out                  petroleum and certain petroleum
                                                 In support of your argument that a                        that there was no substantial                         products and accredited to test
                                              substantial transformation will take                         transformation because ‘‘both the                     petroleum and certain petroleum
                                              place when the crude acetonitrile is                         precursor and purified substances had                 products for customs purposes for the
                                              purified into analytical-grade                               the same essential character as aviation              next three years as of May 20, 2015.
                                              acetonitrile, you analogize to rulings HQ                    lubricants of merely different grades and
                                              563301, dated August 26, 2005 and HQ                         were therefore not different articles of              DATES:  Effective Dates: The
                                              731731, dated February 23, 1989. In HQ                       commerce, and both substances had the                 accreditation and approval of Saybolt
                                              731731, we found that a substantial                          same chemical structures.’’ Yet here too              LP as commercial gauger and laboratory
                                              transformation occurred when raw                             the crude and purified acetonitrile will              became effective on May 20, 2015. The
                                              powdered vancomycin hydrochloride                            have the same essential character as                  next triennial inspection date will be
                                              was processed into a finished antibiotic                     acetonitrile and you have provided no                 scheduled for May 2018.
                                              drug capable of intravenous use. As                          evidence that the substances will have
                                                                                                                                                                 FOR FURTHER INFORMATION CONTACT:
                                              imported, the raw chemical was unfit                         a different chemical structure.
                                              for medical use. Applying the three                          Therefore, we are ‘‘bound to follow the               Approved Gauger and Accredited
                                              substantial transformation factors, we                       well-settled principle of Customs law                 Laboratories Manager, Laboratories and
                                              found that the name changed to                               that the mere refining of a chemical                  Scientific Services Directorate, U.S.
                                              ‘‘sterile’’ vancomycin hydrochloride, the                    does not result in a substantial                      Customs and Border Protection, 1300
                                              use changed to an injectable antibiotic,                     transformation of the imported                        Pennsylvania Avenue NW., Suite
                                              and the character changed to a purified                      chemicals into a new and different                    1500N, Washington, DC 20229, tel. 202–
                                              solution of uniform potency levels.                          article of commerce with a new name,                  344–1060.
                                              Accordingly, we found that the                               character, and use.’’ HQ 556143, dated                SUPPLEMENTARY INFORMATION:    Notice is
                                              chemical was substantially transformed.                      March 2, 1992.                                        hereby given pursuant to 19 CFR 151.12
                                              Similarly, in HQ 563301 we found that                                                                              and 19 CFR 151.13, that Saybolt LP, 220
                                              a substantial transformation occurred                        HOLDING:
                                                                                                             The purification process described                  Texas Ave., Texas City, TX 77590, has
                                              when bulk parathormone was processed
                                                                                                           above will not substantially transform                been approved to gauge petroleum and
                                              into finished parathormone cartridges.
                                                                                                           the acetonitrile, and the country of                  certain petroleum products and
                                              We held that the ‘‘extensive processing
                                                                                                           origin of the finished analytical-grade               accredited to test petroleum and certain
                                              transforms the raw parathormone from
                                              an unstable, non-sterile, frozen material                    acetonitrile will not be the United States            petroleum products for customs
                                              unsuitable for human use into a                              for U.S. Government procurement                       purposes, in accordance with the
                                              pharmaceutical agent ready for human                         purposes.                                             provisions of 19 CFR 151.12 and 19 CFR
                                              use.’’                                                                                                             151.13. Saybolt LP is approved for the
                                                                                                           Sincerely,
                                                 A common theme in HQ 563301 and                                                                                 following gauging procedures for
                                                                                                           Harold Singer,
                                              HQ 731731 is the production of a                                                                                   petroleum and certain petroleum
                                                                                                           Acting Executive Director, Regulations &              products from the American Petroleum
                                              medicine from chemicals that were                            Rulings, Office of International Trade.
                                              previously unfit for human                                                                                         Institute (API):
                                                                                                           [FR Doc. 2015–24288 Filed 9–23–15; 8:45 am]
                                              consumption. In both cases, we found
                                                                                                           BILLING CODE P                                         API Chapters                       Title
                                              that—along with the required change in
                                              name and character—this conversion
                                                                                                                                                                 3 ...................   Tank Gauging.
                                              from raw chemicals to medication                             DEPARTMENT OF HOMELAND                                5 ...................   Metering.
                                              represented a significant change in use.                     SECURITY                                              7 ...................   Temperature Determination.
                                              Here, aside from the fact that no change
                                                                                                                                                                 8 ...................   Sampling.
                                              in name or character will occur, the                         U.S. Customs and Border Protection                    12 .................    Calculations.
                                              production of analytical-grade
                                                                                                           Accreditation and Approval of Saybolt                 17 .................    Maritime Measurement.
                                              acetonitrile results in a less significant
                                              change in use, namely, from one type of                      LP as a Commercial Gauger and
                                              industrial use to another.                                   Laboratory                                              Saybolt LP is accredited for the
                                                 We believe that this case is more                                                                               following laboratory analysis
                                                                                                           AGENCY:  U.S. Customs and Border
                                              analogous to cases involving the                                                                                   procedures and methods for petroleum
                                                                                                           Protection, Department of Homeland
                                              refining and purification of chemicals                                                                             and certain petroleum products set forth
                                                                                                           Security.
                                              than to those involving the production                                                                             by the U.S. Customs and Border
                                                                                                           ACTION: Notice of accreditation and
                                              of medicine. As noted above, CBP has                                                                               Protection Laboratory Methods (CBPL)
                                                                                                           approval of Saybolt LP as a commercial                and American Society for Testing and
                                              consistently held that refining or
                                                                                                           gauger and laboratory.
                                              purification of a crude substance does                                                                             Materials (ASTM):

                                                 CBPL No.                   ASTM                                                                       Title

                                              27–02 ..............      D1298              Standard Practice for Density, Relative Density (Specific Gravity), or API Gravity of Crude Petroleum and Liq-
tkelley on DSK3SPTVN1PROD with NOTICES




                                                                                             uid Petroleum Products by Hydrometer Meter.
                                              27–03    ..............   D4006              Standard Test Method for Water in Crude Oil by Distillation.
                                              27–04    ..............   D95                Standard Test Method for Water in Petroleum Products and Bituminous Materials by Distillation.
                                              27–05    ..............   D4928              Standard Test Method for Water in Crude Oils by Coulometric Karl Fischer Titration.
                                              27–06    ..............   D473               Standard Test Method for Sediment in Crude Oils and Fuel Oils by the Extraction Method.
                                              27–13    ..............   D4294              Standard Test Method for Sulfur in Petroleum and Petroleum Products by Energy-Dispersive X-ray Fluores-
                                                                                             cence Spectrometry.



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Document Created: 2018-02-26 10:18:14
Document Modified: 2018-02-26 10:18:14
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of final determination.
DatesThe final determination was issued on September 18, 2015. A copy of the final determination is attached. Any party-at-interest, as defined in 19 CFR 177.22(d), may seek judicial review of this final determination within October 26, 2015.
ContactRoss Cunningham, Valuation and Special Programs Branch, Regulations and Rulings, Office of International Trade (202) 325-0034.
FR Citation80 FR 57629 

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