Marketing support and subcontracted client contracts: no agency permanent establishment under Article 5 DTAA; arm's-length pricing bars profit attribu...
The dominant issue was classification of an imported wheat seed extract standardized to deliver functional lipids, intended exclusively for use in dietary supplements and licensed as a functional ingredient, as between a plant extract heading and a food preparation heading. Applying the tariff notes and end-use character, it was held that the solvent-extracted, concentrated product was marketed and used as a nutraceutical for general well-being (skin and hair health) and not for treatment or prevention of disease, giving it the essential character of a food preparation under Heading 2106 rather than a mere botanical extract. Accordingly, it was classified under CTH 2106 90 99. - AAR
The dominant issue was classification of an imported wheat seed extract standardized to deliver functional lipids, intended exclusively for use in dietary supplements and licensed as a functional ingredient, as between a plant extract heading and a food preparation heading. Applying the tariff notes and end-use character, it was held that the solvent-extracted, concentrated product was marketed and used as a nutraceutical for general well-being (skin and hair health) and not for treatment or prevention of disease, giving it the essential character of a food preparation under Heading 2106 rather than a mere botanical extract. Accordingly, it was classified under CTH 2106 90 99. - AAR
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