CLA-2:CO:R:C:G 085987 SER
Area Director of Customs
6 World Trade Center
New York, New York 10048
RE: Protest for further review 1001-9-003192, filed May 25,
1989: Maleic acid
Dear Sir:
This protest was filed on May 25, 1989, against your
decision in the classification of maleic acid, in entry no. XXX-
XXXXXXX, made XXXXXXXXXXXXXX, and liquidated XXXXXXXXXXXXXX. Our
decision follows:
FACTS:
The maleic acid was entered in subheading 2917.19.5050,
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), the provision for "Polycarboxylic acids, their
anhydrides, halides, peroxides and peroxyacids; their
halogenated, sulfonated, nitrated or nitrosated derivatives:
Acyclic polycarboxylic acids, their anhydrides, halides,
peroxides, peroxyacids and their derivatives: Other: Other:
Other, Other," dutiable at 4 percent ad valorem.
You liquidated the maleic acid in subheading 2917.19.2510,
HTSUSA, now subheading 2917.19.2300, HTSUSA, the provision for
"Polycarboxylic acids, . . .: Acyclic polycarboxylic acids, their
anhydrides . . .: Other: Maleic acid," dutiable at 3.7 percent
per kilogram plus 16.8 percent ad valorem.
ISSUE:
Is the classification of the maleic acid at issue, in the
subheading 2917.19.2510, HTSUSA, correct and legal?
-2-
LAW AND ANALYSIS:
Under the Tariff Schedules of the United States (TSUS) this
chemical was subject to two rates of duty depending on whether
the product was produced from benzenoid sources or from other
materials. The protestant here is complaining that the current
tariff, which attempts to be revenue neutral in comparison to
TSUS, does not differentiate between maleic acid produced from
benzenoid or from other sources. In fact the provision in which
maleic acid is classifiable in the HTSUSA is dutiable at the rate
applicable to the higher rate of duty of the benzenoid product
under the TSUS.
It is claimed that your classification of the maleic acid
as such is illegal and that the product should be classified in a
manner analogous to the TSUS classification.
The United States Customs Service is an administrative
agency and it has the responsibility of carrying out the
statutory interpretation of the HTSUSA at the administrative
level. It does not have the authority to formulate trade policy
or change duty rates. Thus it must abide by the classification
as determined by the HTSUSA which classifies the merchandise at
issue under subheading 2917.19.2510, HTSUSA, (2917.19.23, HTSUSA,
as of July 1, 1989).
As was detailed by the United States Trade Representative,
the change in classification of maleic acid from the TSUS to the
HTSUSA was completed totally within legal means. The United
States and Japan conducted Article XXVIII negotiations on each
other's proposed Harmonized System Tariff Schedules for over two
years. In addition, the U.S. conversion to the Harmonized System
was accomplished with full public participation. The
Administration published the proposed new tariff three times for
public examination, solicited public comments on an on-going
basis for five years, and consulted actively with numerous trade
associations.
-3-
HOLDING:
You should deny the protest. Maleic acid, whether or not of
benzenoid origin, is classified in subheading 2917.19.2510,
HTSUSA. A copy of this decision should be attached to the Form
19 to be returned to the protestant.
Sincerely,
John Durant, Director
Commercial Rulings Division