us-cbp-cross-rulings-hq-082621•HQ 082621: Decision on Application for Further Review of Protest No. 1001-8-001354, on the classification of a petroleum product of Brazil.
HQ 082621: Decision on Application for Further Review of Protest No. 1001-8-001354, on the classification of a petroleum product of Brazil.
us-cbp-cross-rulings-hq-082621HQ 082621: Decision on Application for Further Review of Protest No. 1001-8-001354, on the classification of a petroleum product of Brazil.Guidance
Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.
HQ 082621
May 11,1990
CLA-2 CO:R:C:G 082621 JGH
CATEGORY: Classification
TARIFF NO.: 475.25
Area Director of Customs
New York Seaport Area
6 World Trade Center
Room 432
New York, N.Y. 10048
RE: Decision on Application for Further Review of
Protest No. 1001-8-001354, on the classification
of a petroleum product of Brazil.
Dear Sir:
This protest involves the classification of a petroleum
product imported for motor fuel from Brazil under the Tariff
Schedules of the United States (TSUS).
FACTS:
The product was entered in September 1985, under the
provision for mixtures of hydrocarbons derived from petroleum
in item 475.65, TSUS. Customs liquidated the entry as motor
fuel in item 475.25, TSUS.
The product meets the specifications for motor fuel of the
ASTM D-439 guidelines, except that the Reid Vapor Pressure
(RVP) is challenged. Customs found it to be 7.6. while the
importer insists that it is 6.6.
ISSUE:
Classification of a certain entry of petroleum under
the TSUS.
LAW & ANALYSIS:
Reid Vapor Pressure is described as the measure of the
surface pressure required to keep a liquid from vaporizing.
It is claimed that regardless of whether the RVP is 6.6 or 7.6,
the imported product could not be considered a motor fuel as
-2-
entered, as the average RVP for motor fuel for 1985 was 10.5.
The product is said to be commercially known as a "cat
naphtha", which is defined as catalytically reformed naphtha,
produced by a refining procedure which breaks down large,
complex hydrocarbon molecules into smaller, more useful ones.
This refining method is said to produce a larger quantity of
gasoline base stock of substantially higher octane than is
produced by thermal cracking.
Because of its low RVP level, it is contended that the
import is a blendstock used in the production of a finished
motor fuel. In support of its position, the importer submitted
a statement from a petroleum engineer, who stated that while
not in violation of ASTM specifications, the RVP of the
imported material is well below marketable gasoline quality.
Data from a survey of gasoline sold in the U.S. in 1985 as
conducted by the National Institute for Petroleum and Energy
Research (NIPER) was also submitted. It was claimed that this
data showed that for the summer period 1985 "finished gasoline
is always very close to the seasonal maximum, which in the case
of summer specification is 10.0 to 11.5 psia." A sample tested
by an independent laboratory was said to disclose a RVP of 6.6.
A Customs Laboratory report found a RVP of 7.6. In a
statement to Customs in December 1985, the importer listed the
properties of the import, including a RVP of 7.6. A review of
the NIPER report for the Summer of 1985 shows the minimum RVP
for gasoline sold commercially in several districts to be in
the 7 range-
RVP Ranges for Automotive Gasolines for the Summer 1985
(NIPER Report)
Mid-Atlantic Region 7.9
Southeast 7.5
So. Mount. 7.7
No. Cal. 7.8
So. Calif. 7.8
Appalachian 6.1
Thus the minimum RVP for commercial gasoline in several
districts was at least seven, and, in fact, the lowest
commercial product had a RVP of 6.1.
-3-
HOlDING:
The Protest is denied
The protestant should be furnished a copy of this decision
along with the Form 19 Notice of Action.
Sincerely,
Jerry Laderberg
Acting Director
Commercial Rulings Division
1cc Chief, Residual Liquidation and Protest Branch
c/o DARC, Commercial Operations, New York Region
6cc A.D., N.Y. Seaport
hurley library/peh
082621
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