CLA-2 RR:CR:GC 962314 MGM
Port Director
U.S. Customs Service
40 S. Gay St.
Baltimore, MD 21202
Re: Protest 1303-98-100171; Crude Triglyceride Oil
Dear Port Director:
This is our decision regarding Protest 1303-98-100171, concerning your classification of a crude triglyceride oil under the Harmonized Tariff Schedule of the United States (HTSUS). 1998.
FACTS:
The instant merchandise is a solution of crude, or unprocessed, triglyceride oils. The crude oil is extracted from fermented fungal biomass by a hexane solvent. After removal of the solvent, the crude oil is packaged in drums and imported into the United States. After further processing in the United States, the oil is used as an ingredient in food. The oil consists of triglycerides of several fatty acids. In a triglyceride, three fatty acid moities are ester linked to one glycerol. A plurality of the oil, about 40%, consists of triglycerides of arachidonic acid (C20H32O2; CAS# 506-32-1), which is a polyunsaturated fatty acid. The next most common fatty acid is palmitic acid (C16H32O2; CAS # 57-10-3), a saturated fatty acid, triglycerides of which make up about 16% of the solution. The remainder of the oil consists principally of other triglycerides in lesser percentages.
The merchandise was entered April 20, 1998, under subheading 1516.20.90, HTSUS, which provides for oils which have been hydrogenated, inter-esterified, reesterified or elaidinised. The entry was liquidated June 5, 1998, with classification under subheading 2916.19.30, HTSUS, the provision for other unsaturated acyclic monocarboxylic acids. This classification was timely protested on September 1, 1998. In a submission which accompanied the protest, the protestant expressly abandoned the entered classification in subheading 1516.20.90, HTSUS, and argued for classification in subheading 1515.90.40, HTSUS, which provides for other fixed vegetable fats and oils.
ISSUE:
What is the classification of the described merchandise?
LAW AND ANALYSIS:
Merchandise imported into the U.S. is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law.
GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the GRIs.
In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See, T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The merchandise was classified in heading 2916, HTSUS, upon liquidation. With exceptions inapplicable in this case, Chapter 29 of the tariff applies only to “separate chemically defined organic compounds.” Note 1 (a), Chapter 29, HTSUS. The instant oil contains numerous different organic compounds rather than a single separately defined compound and is excluded from the headings of Chapter 29, HTSUS.
The protestant argues for classification in heading 1515, HTSUS:
1515 Other fixed vegetable fats and oils (including jojoba oil) and their fractions, whether or not refined, but not chemically modified:
Heading 1515, HTSUS, encompasses single (not mixed with fats or oils of another nature) fixed vegetable fats and oils. General EN, Chapter 15, Part (B); EN 15.15. The vegetable oils of this heading may be “single” although composed of more than one type of fatty acid. For example, corn oil consists principally of linoleic acid, oleic acid, and palmitic acid. McMurry, Organic Chemistry, 3rd ed., 1081. Rather, the term “single” means that the oil is not mixed with an oil derived from a different source. A mixture of corn oil and linseed oil would not be a “single” oil. As the merchandise at issue is derived from one source, it is “single.”
An oil must also be a “vegetable oil” to fall within heading 1515, HTSUS. A vegetable oil is “an oil of plant origin; esp: a fatty oil from seeds or fruits.” Webster’s Ninth New Collegiate Dictionary. The instant merchandise is derived from fungus. A fungus is “any of a major group (Fungi) of saprophytic and parasitic lower plants that lack chlorophyll and include molds, rusts, mildews, smuts, mushrooms, and yeasts.” Webster’s Ninth New Collegiate Dictionary. Thus a fungus is a plant, and an oil derived from fungus is a vegetable oil.
HOLDING:
You are instructed to deny the protest, except to the extent reclassification of the merchandise as indicated above results in a partial allowance. Crude oil derived from fungal biomass consisting of several types of triglycerides is classified in subheading 1515.90.40, HTSUS.
In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division