HQ 951428
April 14 1994
CLA-2 CO:R:C:F 951428 JGH
District Director of Customs
300 South Ferry Street
Terminal Island
San Pedro, California 90731
RE: Classification under the Harmonized Tariff Schedule of the
United States (HTSUS) of Petroleum Reformate with High
Aromatic Content - I.A. 7/92
Dear Sir:
This decision concerns the classification under the HTSUS of
a high-aromatic-content reformate from Saudi Arabia, entered by
Westport Petroleum, Inc., on June 7, 1990.
FACTS:
Information supplied by the importer shows that the
petroleum product has an aromatic content of over 60 percent:
ranging from about 62 percent to over 66 percent, depending when
the sample was taken. The product was entered as an other
aromatic hydrocarbon mixture in subheading 2707.50.000, HTSUS.
However, after Customs analyzed a sample, it was determined that
the import, which was found to have approximately 65 percent
aromatics, was classifiable for motor fuel blending stock in
subheading 2710.00.18. It was stated that the most likely use of
the product was in the manufacture of gasoline.
ISSUE:
Whether the high aromatic-content reformate is classifiable
as other aromatic mixtures in subheading 2707.50.000, HTSUS, or
as a motor fuel blending stock in subheading 2710.00.18, HTSUS.
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LAW AND ANALYSIS:
It is argued in behalf of the importer that, based on the
Explanatory Notes (ENs) interpretation of 2707, the import is
classifiable in that heading as an other hydrocarbon mixture;
that the ENs not only state that 2707 covers oils and other
products obtained by the distillation of high temperature coal
tar in more or less broad fractions, which produces mixtures
consisting predominantly of aromatic hydrocarbons and other
compounds, but also similar oils and products with a predominance
of aromatic constituents obtained by distillation of low
temperature coal tar or other mineral tar, by "stripping" of coal
gas, by processing of petroleum or by any other process; products
which were, for the most part, considered coal tar crudes under
the previous tariff: The Tariff Schedules of the United States.
The product in question, of course, is not in this category; it
is not a coal tar crude, but, rather, something more, one
reformed for a special use. Reformates are considered petroleum
hydrocarbon mixtures containing a high concentration of
aromatics, and, as a result, are used as an octane-boosting
blendstock in the production of gasoline.
Another argument advanced is that as the product contained
no additives , of an aromatic or non-aromatic type, it could not
qualify under paragraph (C) of Explanatory Notes (EN) for 2710.
However, for tariff purposes the term "additives" is not limited
to additives (even non-petroleum ones) of the type described in
that note, such as those which affect product performance, but
also includes "benzenoid additives" created, as mentioned, to
enhance the octane content of a motor fuel blend stock, as well
as for coal tar crudes; thus, the reformate product that
satisfies the petroleum oils content is considered to remain a
petroleum product for the purposes of the EN.
A issue similar to the one presented here: classification of
a petroleum product of high aromatic content, is believed to be
pending before the court in Clarendon Marketing, Inc., V. U.S.,
Docket Number 92-08-00575.
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HOLDING:
The reformate as described above, is classifiable as motor
fuel blendstock in subheading 2710.0018, HTSUS.
A copy of this decision should be provided to the internal
advice requestor.
The Office of Regulations and Rulings will take steps to
make this decision available to Customs personnel via the Customs
Rulings Module in ACS and the public via the Diskette
Subscription Service, Lexis, Freedom of Information Act and other
public access channels 60 days from the date of this decision.
Sincerely,
John Durant, Director