CLA-2 CO:R:C:F 956973 RC
District Director of Customs
1 East Bay Street
Savannah, Georgia 31401
RE: Application for Further Review of Protest No. 1703-94-100076, filed June 24, 1994, concerning the classification of
d'limonene and orange oil mixture.
Dear Sir:
This is a decision on a protest filed against your
decision in the classification of goods entered December 12,
1993 and liquidated June 10, 1994.
FACTS:
You classified the product in subheading 3301.12.0000,
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), the provision for essential oils of orange, dutiable
in 1993 at the column one general rate of 6 percent ad
valorem. This represented a change from the protestant's
entered classification under subheading 3302.90.1050, HTSUSA,
the provision for "Mixtures of odoriferous substances and
mixtures (including alcoholic solutions) with a basis of one
or more of these substances, of a kind used as raw material in
industry: Other: Containing no alcohol or not over 10 percent
of alcohol by weight, Other," with a claim of column one
special duty-free treatment as a product of a beneficiary
country of the Generalized System of Preferences.
This product, described as a mixture of Brazilian
d'limonene with orange peel oil, is imported in bulk from
Brazil. Brazilian d'limonene is produced from the
distillation of orange peel molasses. The other product,
orange essential oil, is derived from cold pressed orange
peel. The mixture is stated to be used in the manufacture of
resins that form a raw material for use in the rubber,
adhesives, and plastics industries.
ISSUE:
Whether a deliberate mixture of d'limonene and orange oil
is properly classified as a mixture of odoriferous substances
or orange essential oil.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRIs) taken in their
appropriate order provide a framework for classification of
merchandise under the HTSUS. Most imported goods are
classified by application of GRI 1, that is, according to the
terms of the headings of the tariff schedule and any relative
section or chapter notes. The Explanatory Notes (ENs) to the
Harmonized Commodity Description and Coding System, which
represent the official interpretation of the tariff at the
international level, facilitate classification under the HTSUS
by offering guidance in understanding the scope of the
headings and GRIs.
The classification of each component in this mixture
would be as follows. Chemically pure d'limonene of a purity
of 96 percent or higher is classifiable in heading 2902 as a
cyclo- terpene, under the provision for cyclic hydrocarbons.
Essential oil of orange is classifiable in heading 3301 under
the provision for essential oils of citrus fruit. Confusing
the issue, however, is the fact that essential oil of orange
contains d'limonene among many other components. Therefore,
it may not be immediately apparent from composition alone
where classification is indicated. We also must determine
whether deliberate mixing or combining has taken place.
Heading 3302 provides for "Mixtures of odoriferous
substances and mixtures...with a basis of one or more of these
substances, of a kind used as raw materials in industry."
Therefore, mixtures of these oils are classifiable at the
heading level according to GRI 1, without the need to resort
to the rules for mixtures contained in subsequent GRIs. Since
we are informed by the importer that this product is not
suitable for use in the food and drink industries but, rather,
is used as and industrial raw material, it is properly
classified in subheading 3302.90.1050.
HOLDING:
We find that this mixture of d'limonene and orange oil
falls into subheading 3302.90.1050, the provision for
"Mixtures of odoriferous substances and mixtures...with a
basis of one or more of these substances, of a kind used as
raw materials in industry: Other: Containing no alcohol or not
over 10 percent of alcohol by weight, Other." This provision
is eligible for duty free treatment as a product of Brazil
under the Generalized System of Preferences.
You are instructed to allow the protest in full. A copy
of this decision should be attached to the Customs Form 19,
Notice of Action on the protest, to be returned to the
protestant.
In accordance with Section 3 A (11)(b) of Customs
Directive 099 3550-065, dated August 4, 1993, Subject:
Revised Protest Directive, this decision should be mailed by
your office to the protestant no later than 60 days from the
date of this letter. Any reliquidation of the entry in
accordance with the decision must be accomplished prior to
mailing of the decision. Sixty days
from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to
Customs personnel via the Customs Rulings Module in ACS and
the public via the Diskette Subscription Service, Freedom of
Information Act and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division