CLA-2-29:OT:RR:NC:N3:140
Mr. Jim Masloski
Customs Direct LLC
6901 W Strabane Trl,
Sioux Falls, South Dakota 57106
RE: The tariff classification of Methanol from Canada
Dear Mr. Masloski:
In your letter dated February 05, 2021, you requested a tariff classification ruling on behalf of your client, Alberta-Pacific Forest Ind., Inc.
In your initial request letter, you indicated the product to be Methylated Spirits to be used for the production of dimethyl ether DME fuel. However, upon further review by the National Import Specialist who handles Spirits, and his contact with your office, it was determined that the product is actually Methanol. This information was confirmed by your office in an email on February 12, 2021. The instant product will be used to manufacture Dimethyl Ether.
Methanol is an organic solvent that can be synthesized from many natural and synthetic sources. Our research indicates that it can used be an alternate to oil and gas to produce hydrocarbon fuels. You indicate that the product will be used in the production of dimethyl ether (DME) fuel.
Dimethyl ether (DME) is a synthetically produced alternative to diesel for use in specially designed compression ignition diesel engines. It is used extensively in the chemical industry and allied industries.
In your request letter, you suggested classification under 2905.11.10. That breakout only applies to methanol used to produce a specific type of substitute fuel, called Synthetic Natural Gas (SNG). The instant product, although used to make synthetic fuel, is not indicated to be used to make SNG but is used in the production of a different alternative fuel called dimethyl ether (DME) fuel.
The applicable subheading for the Methanol, imported for use in production of dimethyl ether (DME) fuel, will be 2905.11.2085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Methanol (methyl alcohol): Other…Other.” The general rate of duty will be 5.5 percent ad valorem.
You also asked for a review of the applicability of Excise Tax to the instant product. An informational publication regarding Excise Tax can be found at https://www.irs.gov/pub/irs-pdf/p510.pdf.
You may also contact the TTB at the following number: (1-866-927-2533), [email protected]. Written requests may be addressed to Alcohol and Tobacco Tax and Trade Bureau, Advertising, Labeling and Formulation Division, 1310 G Street NW, Box 12, Washington, DC 20005.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling the FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Paul Hodgkiss at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division