HQ 956481
JULY 20 1994
CLA-2 CO:R:C:F 956481
A.S. Campbell
C.G. Smith Chemicals
72 Ballantrae Road
Merebank
Durban, 4052,
South Africa
RE: Classification of ethanol under the Harmonized Tariff
Schedule of the United States (HTSUS).
Dear Sir:
Your communication of May 20, 1994, concerns the dutiable
status of ethanol. You also inquire about the eligibility of
ethanol from South Africa under the Generalized System of
Preferences (GSP).
FACTS:
It is stated that the company manufactures a range of
ethanol based products produced from the fermentation and
distillation of sugar cane molasses.
Listed were:
1) Potable Ethanol (beverage grade 96.4%)
2) Denatured Ethanol (cosmetic grade 96.4%)
3) Undenatured Ethanol (cosmetic grade 96.4%)
4) Denatured Anhydrous Ethanol (99.9%)
5) Undenatured Anhydrous Ethanol (99.9%)
6) Di Ethyl Ether
ISSUE:
Classification of various ethanols under the HTSUS.
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LAW and ANALYSIS:
On April 24, 1994, President Clinton signed Presidential
Proclamation 6676,designating South Africa as a beneficiary of
the Generalized System of Preferences (GSP). The proclamation
applies to merchandise entered or withdrawn from warehouse for
consumption on or after May 10, 1994.
Beverage grade ethanol (96.4%) is classifiable under the
provision for undenatured ethyl alcohol of an alcoholic strength
by volume of 80% volume or higher: for beverage purposes, in
subheading 2207.10.30, HTSUS. Products of South Africa
classifiable in the provision are entitled to GSP benefits, if
all requirements are met. However, they are still subject to a
Federal Excise Tax of $13.50 per proof gallon.
The other undenatured ethanol listed - undenatured cosmetic
and undenatured anhydrous - would be classifiable as undenatured
ethyl alcohol of an alcoholic strength by volume of 80% or
higher, for nonbeverage purposes in subheading 2207.10.60, HTSUS.
As GSP is not available on ethyl alcohol classified in this
provision, the rate of duty is 3 percent ad valorem. In addition
to the excise tax mentioned above, importations under subheading
2207.10.60 are subject to the added duty assessed on ethanol
imported for fuel use in subheading 9901.00.50, HTSUS, of 14.27
cents per liter. If it is contended that fuel use is not
intended, at entry the importer has to certify what the intended
use is, and within the prescribed period, proof of non-fuel use
has to be submitted to Customs. 19 CFR 10.99; 10.131-10.139
(copies enclosed). If the non-fuel use is not established, the
added duty would apply.
Denatured ethyl alcohol and denatured anhydrous ethyl
alcohol are classifiable in subheading 2207.20.00, HTSUS. The
rate of duty is 3 percent ad valorem. In addition they are
subject to the above excise tax, and the added duty under
subheading 9901.00.50, HTSUS, unless it is certified at entry
that a fuel use is not intended and the regulations mentioned
above complied with.
Di ethyl ether is classifiable in subheading 2909.11.00,
HTSUS. Products classifiable in this provision from South Africa
are eligible for GSP benefits if all the requirements are met.
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HOLDING:
Beverage grade ethyl alcohol is classifiable in subheading
2207.10.30, HTSUS. Products of South Africa classifiable in this
provision are duty free, but subject to the excise tax.
Undenatured ethyl alcchol, including anhydrous, is classifiable
in subheading 2207.10.60, HTSUS, with a duty of 3 percent ad
valorem; also they are subject to the federal excise tax, and the
added duties of subheading 9901.0050, HTSUS, unless the nonfuel
use is established.
Denatured ethyl alcohol, including anhydrous, is classifiable in
subheading 2207.20.00, HTSUS, with a duty of 3 percent ad
valorem; it is also subject to the excise tax, and the added
duties of fuel use, unless the non fuel use is established.
Di Ethyl Ether is classifiable in subheading 2909.11.00, HTSUS,
and products of South Africa classifiable in this subheading are
entitled to GSP benefits, if all the requirements are met.
Sincerely,
John Durant, Director
Commercial Rulings Division