us-cbp-cross-rulings-hq-082509•HQ 082509: Decision on Application for Further Review of Protest No. 5301-4-000409, on the Classification of Fuel Entered at the Port of Houston, Texas, under Entry No. 83-182296-6, April 9, 1983.
HQ 082509: Decision on Application for Further Review of Protest No. 5301-4-000409, on the Classification of Fuel Entered at the Port of Houston, Texas, under Entry No. 83-182296-6, April 9, 1983.
us-cbp-cross-rulings-hq-082509HQ 082509: Decision on Application for Further Review of Protest No. 5301-4-000409, on the Classification of Fuel Entered at the Port of Houston, Texas, under Entry No. 83-182296-6, April 9, 1983.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 082509
March 9, 1989
CLA-2 CO:R:C:G: 082509 SS
CATEGORY: Classification
TARIFF NO.: 475.2550
U.S. Customs Service
District Director
Southwest Region
5850 San Felipe St.
Houston, Texas 77057-3012
RE: Decision on Application for Further Review of Protest
No. 5301-4-000409, on the Classification of Fuel Entered at
the Port of Houston, Texas, under Entry No. 83-182296-6,
April 9, 1983.
Dear Sir:
This is our decision on application for further review of
protest No. 5301-4-000409.
FACTS:
The product in issue was entered as kerosene under item
475.3000 of the Tariff Schedules of the United States (TSUS),
which provides for kerosene derived from petroleum, shale oil, or
both (except for motor fuel). However, based on reports
furnished both by independent commercial and U.S. Customs
laboratories, U.S. Customs reclassified the entry as jet fuel
kerosene type in item 475.2550, TSUS.
ISSUE:
Whether imported fuel, which satisfies the critical
requirements for kerosene jet fuel under American Society for
Testing Materials (ASTM) 1655, is properly classifiable as
kerosene jet fuel in item 475.2550, TSUS, even though all the
properties under ASTM D 1655 were not tested.
LAW AND ANALYSIS:
Counsel, on behalf of the importer, makes the following
claims: (1) that the merchandise in issue is properly
classifiable in item 475.3000, TSUS; and (2) U.S. Customs
reclassification of the merchandise in item 475.2550, TSUS, was a
mistake of fact, correctable under Section 520 (c) of the Tariff
Act of 1930.
-2-
Counsel bases the above claims on the premise that U.S.
Customs' reclassification of the merchandise as jet fuel was made
on the basis of a laboratory report which did not test for all
the critical properties required by the applicable standards to
identify a product as jet fuel. Consequently, counsel claims,
the reclassification of the merchandise on the basis of
insufficient data constitutes a clerical error, mistake of fact,
or other inadvertence not amounting to an error in the
construction of the law, correctable under Section 520 (c) of the
Tariff Act of 1930.
In support of these claims, counsel relies on United States
v. Exxon Corp., 607 F.2d 985, (1979). Exxon involved an appeal
from a decision of the United States Customs Court which
sustained an importer's claim that an imported petroleum product
should have been classified as naphtha in item 475.35, TSUS,
rather than as motor fuel in item 475.25, TSUS. The Exxon case
arose when Treasury Decision (T.D.)66-23(13) was used as a
guideline for the classification of naphtha-type and kerosene-
type materials as motor fuel. Subsequent to Exxon, T.D. 83-173
revoked T.D. 66-23(13) and stated that it would be indicated that
an imported petroleum product would be classified as motor fuel
if it met one of the following ASTM specifications: D 439 for
automotive gasoline; D 1655 for aviation turbine fuels or D 910
for aviation gasolines. Counsel claims that the entry was
liquidated prior to the revocation of T.D. 66-23(13) and
regardless of whether T.D. 66-23(13) or ASTM D 1655 was the
applicable standard, the Exxon case establishes that all critical
properties must be tested and met in order to support a
determination that the imported merchandise is motor fuel.
In making its decision the court in Exxon discussed the
characteristics a petroleum derivative must possess to be
suitable for use as a motor fuel. The court stated that the
"[p]roperties listed in T.D. 66-23(13) are not irrefutable. The
Government and the importer are at liberty to establish that a
standard listed as critical is really unimportant. However, in
the case at bar no such showing was made". Id. at 989. The
court further noted that the data submitted indicated that it
would be difficult, if not impossible, to start a motor with the
imported product and therefore, the merchandise should have been
classified as naphtha, instead of as motor fuel.
In the instant case, in considering the specifications
listed in ASTM D 1655, we are of the opinion that enough
specifications were tested by both U.S. Customs and an
independent laboratory to establish that the product should be
classified as kerosene jet fuel. Due to cost restraints, it is
-3-
neither feasible nor possible to perform the full battery of ASTM
D 1655 tests on every sample. However, we are also of the
opinion that in testing for certain properties on a given sample,
the proper classification of the sample can be determined on the
basis of these test results. For example, because many of the
specifications in ASTM D 1655 are closely related, the tests
results may be extrapolated. As an example, in the instant case,
since both distillation characteristics and vapor pressure meet
the specifications listed in ASTM D 1655, it is almost certain
that the fuel's viscosity will meet specifications. Similarly,
since the product passes the copper strip corrosion test, it is
fairly certain that the total acidity specification will be met.
Therefore, we are of the opinion that the full range of testing
was not critical in this case.
Also, counsel's argument that this merchandise is properly
classifiable in item 475.3000, TSUS, as kerosene because it meets
the ASTM D 3699 standard for kerosene is not significant in this
case. The sole issue in this case is whether this merchandise
meets the applicable standard for jet fuel. The specifications
for kerosene jet fuel are more difficult to meet then those for
kerosene, and aviation turbine fuel that meets specifications
listed in ASTM D 1655 for jet fuel would also meet specifications
for standard kerosene listed in ASTM D 3699. In other words,
kerosene type jet fuels can be used in kerosene applications, but
not all kerosene can be used as jet fuel.
Therefore, counsel's reliance on the Exxon case is
misplaced, because unlike the facts in Exxon, in the instant case
there is no showing that the merchandise is unsuitable for the
use for which it is classified. Further, the importer has not
produced any data to indicate that the merchandise failed to meet
any of the requirements of ASTM 1655 and has therefore not
overcome the presumption of correctness of U.S. Customs'
classification of the merchandise.
It is also the position of this office that in classifying
this merchandise, there was no clerical error, mistake of fact,
or other inadvertence within the meaning of section 520(c) of the
Tariff Act of 1930. Classification of the merchandise was based
on the full knowledge that although all the properties for D 1655
had not been reported in the public gauger's analysis, at least
12 tests of ASTM D 1655 were met, and the analysis listed no data
which failed to meet the standard. Also, U.S. Customs was aware
of the implications of Exxon, supra. Additionally, the importer
furnished no data to indicate that the merchandise failed to meet
any of the requirements of ASTM D 1655.
-4-
HOLDING:
In view of the foregoing, it is our position that the
merchandise in issue is properly classifiable in item 475.25,
TSUS.
This protest is denied. A copy of this decision should be
furnished to the protestant with the Form 19 Notice of Action.
Sincerely,
John Durant, Director
Commercial Rulings Division
Continue sua pesquisa no ChatGPT ou Claude
Conecte o Omnilex para pesquisar o corpus jurídico pelo seu assistente de IA.