HQ 084518: Butane, Propane, Toluene, Methyl Tertiary Butyl Ether (MTBE), Naphtha

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 084518

                                  September 1, 1989


          CLA-2 CO:R:C:G  084518  SS

          Category: Classification

          Tariff NO.  2711.12, 2711.29, 2707.20, 2902.30, 2909.19, 2710.00

          RE:  Butane, Propane, Toluene, Methyl Tertiary Butyl Ether
               (MTBE), Naphtha

          Mr. Arnold Moore
          American Petroleum Institute
          1220 L Street, N.W.
          Washington, D.C.  20005

          Dear Mr. Moore:

                This is in response to your letter dated May 3, 1989,
          requesting a tariff classification for certain products under the
          Harmonized Tariff Schedule of the United States (HTSUS) and the
          Tariff Schedules of the United States (TSUS).  Customs is no
          longer issuing classification rulings under the TSUS for
          prospective transactions.  If any questions remain under TSUS,
          they must relate to specific importations and should be handled
          under the usual procedures for internal advice or further review
          of protests.

                We are treating your letter as a request for information
          rather than a request for a ruling inasmuch as your questions
          seem to be hypothetical in nature rather than related to a
          specific transaction.  Issuing a ruling under these circumstances
          would not be in accordance with the sound administration of
          Customs and related laws.

          FACTS:

                The products in issue are described as follows:

                (1) Butane - predominantly n-butane, or isobutane, derived
                from petroleum or natural gas.  Butane is a colorless gas
                at atmospheric pressure, and is used as a raw material for
                chemical products and high-octane liquid fuels, including
                direct blending into motor fuel.

                (2) Propane - derived from petroleum or natural gas.
                Propane is a colorless gas at atmospheric pressure.  It is














                                        - 2 -

          used for household and industrial fuels, as material for the
          manufacture  of chemical products.  It may also be used directly
          as motor fuel.

                Toluene - an aromatic hydrocarbon obtained from the
                distillation of aromatic streams primarily manufactured
                through catalytic reforming processes.

                Methyl Tertiary Butyl Ether (MTBE) - An ether which is
                manufactured by chemically reacting methanol and
                isobutylene.  MTBE is used primarily as an EPA approved
                octane booster for unleaded gasoline through direct
                blending.  It is also used to satisfy requirements for
                oxygenates in fuels in certain geographic locations (e.g.,
                Denver).

                Naphtha - Defined as a generic term which may be applied to
                refined, partly refined or unrefined petroleum products,
                and liquid products of natural gas, not less than ten
                percent of which distill below 347`F (175`C), and not less
                than 95 percent of which distill below 464`F (240`C) when
                subjected to distillation in accordance with the Standard
                Method of Tests for distillation of gasoline, naphtha,
                kerosene, and similar petroleum products.

                It is further stated that naphtha is an unfinished
                petroleum product which is derived from crude oil and
                natural gas condensate.  It is used primarily as feedstock
                for catalytic reformers or other refinery processes which
                are required to change these materials into motor fuel
                components and as feedstock for chemical manufacturing
                processes.  As a feedstock, these materials are also known
                by more specific terms such as straight run naphtha,
                hydrocracked naphtha, thermally cracked naphtha, etc.
                These materials all have low octane ratings and are not
                suitable as gasoline blending components, especially in a
                lead free environment.

          DISCUSSION:

                Classification under the HTSUS is governed by the General
          Rules of Interpretation (GRI's).  GRI provides that
          classification is determined first in accordance with the terms
          of the headings and any relative Section or Chapter notes.


















                                        - 3 -

                Heading 2711, HTSUS, provides for petroleum gases and other
          gaseous hydrocarbons.  The Explanatory Notes which should be
          consulted for guidance in interpretations of the provisions of
          the HTSUS, state that this heading covers crude gaseous
          hydrocarbons obtained as natural gases or from petroleum, or
          produced chemically.  Methane and propane are, however, included
          even when pure.

                Heading 2901, HTSUS, provides for acyclic hydrocarbons.
          The Explanatory notes to this heading state that this heading
          excludes crude butane, crude petroleum gases and similar crude
          gaseous hydrocarbons of heading 27.11.

                Subheading 2711.13.00, HTSUS, provides for petroleum gases
          and other gaseous hydrocarbons: Liquefied: butanes with a minimum
          purity of 90 liquid volume percent.  Subheading 2711.29.00.20
          provides for petroleum gases and other gaseous hydrocarbons: In
          gaseous state, butane with a minimum purity of 90 liquid volume
          percent. Subheading 2901.10.10.00 HTSUS, provides for acyclic
          hydrocarbons: saturated, butane.

                Accordingly, the subject butane is properly classifiable in
          the above subheadings depending on whether the product is crude,
          and is in the liquid or gaseous state, or whether in the pure
          form.

                Subheading 2711.12.00, HTSUS, specifically provides for
          liquified propane with a minimun purity of 90 liquid volume
          percent.  Subheading 2711.29.00 HTSUS, specifically provides for
          gaseous propane with a minimum purity of 90 liquid volume
          percent.

                Heading 2707, HTSUS, provides for oils and other products
          of the distillation of high temperature coal tar; similar
          products in which the weight of the aromatic constituents exceeds
          that of the  nonaromatic constituents.  The Explanatory Notes to
          this heading state that this heading includes the oils and
          products... whether crude or refined, but it excludes separate
          chemically defined compounds in the pure or chemically pure state
          obtained by further fractionation or by other processing of tar
          oils (Chapter 29).  The Explanatory Notes to heading 29.02
          provide that to fall in this heading toluene must distill 1
          percent to 96 percent by volume within a 2  C range which
          includes 110.6 C.  Toluene of a lower purity is excluded (heading
          2707).

















                                        - 4 -

                Subheading 2707.20.00.00.8 specifically provides for
          toluene of a purity lower than required of heading 29.02, HTSUS.
          Toluene which meets the specifications of heading 29.02, HTSUS
          are classifiabble under subheading 2902.30.00.00.9, HTSUS.

                Methyl tertiary butyl ether (MTBE) is a separate chemically
          defined organic compound and usually produced from hydrogen and
          carbon dioxide or carbon monoxide.  It can be produced from the
          oxidation of hydrocarbon gases.

                Subheading 2710.00.18, HTSUS, provides for motor fuel
          blending stock.  However, headnote 1 (a) of chapter 27
          specifically excludes "separate chemically defined organic
          compounds".  Since MTBE is a separate chemically defined organic
          compound, it is precluded from classificayion under this chapter.

                Subheading 2909.19.10, HTSUS, provides for ethers of
          monohydric alcohols.  As an ether of a monohydric alcohol
          (methanol), MTBE is properly classifiable under this subheading.

                Subheading 2710.00.25, HTSUS specifically provides for
          naphthas (except motor fuel or motor fuel blending stock).

          CONCLUSION:

                The subject products are classisified as follows:

                Butane - having a minimum purity of 90 liquid volume
                percent:

                liquified - under subheading 2711.13.00, HTSUS;

                gaseous  - under subheading 2711.29.00.20.9, HTSUS;

                chemically defined, not crude - under subheading
                2901.10.10.00.2.
                Propane - having a minimum purity of 90 liquid volume
                percent:

                liquified - under subheading 2711.12.00, HTSUS;

                gaseous - under subheading 2711.29.00., HTSUS.

                Toluene:

                crude or refined - under subheading 2707.20.00.00.8, HTSUS;

                in pure or chemically pure state - 2902.30.00.00.9, HTSUS.














                                        - 5 -

                Methyl tertiary butyl ether - under subheading 2909.19.10,
                HTSUS.

                Naphtha - under subheading 2710.00.25, HTSUS.

                                     Sincerely,




                                     John Durant, Director
                                     Commercial Rulings Division












































          6cc:  Area Director New York Seaport
          SSingh:jaj:8/31/89