CLA-2-27:OT:RR:NC:N2:237
Jeffrey S. Wyman
National Petroleum Corp
7900 International Drive
Bloomington, Minnesota 55425
RE: The tariff classification of used lubricating oil from Venezuela
Dear Mr. Wyman:
In your letter dated May 1, 2014 you requested a tariff classification ruling. You provided a report of chemical analysis for sample code 9002 and MSDS sheets for our review.
The product is described as used lubricating oil containing water and solids that will be collected from networks in Venezuela and shipped to the U.S. for recycling and processing into quality base oils and fuel oils. Extensive processing is required to convert used oil with high levels of complex additives and contaminants into quality base oils and fuel oils. Chemical and physical treatment removes water and solids. Refining produces quality base oils and fuel oils.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989). EN 27.10 (II) (1) is relevant to your product and in pertinent part provides for: waste petroleum and similar waste oils no longer fit for use in primary products (e.g., used lubricating oils, used hydraulic oils and used transformer oil).
The applicable subheading for the used oil will be 2710.99.3100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Waste oils: Other: Wastes of lubricating oils and greases (whether or not containing additives): Of oils. The rate of duty is 84 cents per barrel.
The Harbor Maintenance Fees (HMF) was created by the Water Resource Act of 1986. The fee is intended to require those who benefit from maintenance of U.S. ports and harbors to share the cost of the maintenance. HMF is only collected on imports, domestic shipments, Foreign-Trade Zone (FTZ) admissions, and passengers. They are required to pay .125% of the value of the commercial cargo shipped through identified ports. HMF is not collected on cargo imported or transported via air. (Reference: Title 19 Code of Federal Regulations CFR Section 24.24 Harbor Maintenance Fee).
Formal and informal entries are subject to a Merchandise Processing Fee (MPF). The CBP Regulations 19 CFR 24.23(b)(1) requires the importer of record to pay the fee to Customs and Border Protection (CBP) at the time of presenting the entry summary. Formal entries are required for imports of commercial goods valued at $2,500 or more. Effective October 1, 2011, the MPF for formal entries is an ad valorem fee of 0.3464 percent. The fee is based on the value of the merchandise being imported, not including duty, freight, and insurance charges. The maximum amount of the fee shall not exceed $485 and shall not be less than $25. For example, if .3464 percent of the amount of your merchandise is greater than the maximum amount of $485, the importer is only required to pay the maximum amount of $485.00.
This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), which are administered by the U. S. Environmental Protection Agency. Information on the TSCA can be obtained by contacting the EPA at 1200 Pennsylvania Avenue, N.W., Washington, D.C. 20460, by calling the TSCA Assistance Line at (202) 554-1404, by Fax at (202) 554-5603, by e-mail to: [email protected] or by visiting their website at www.epa.gov.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Frank Cantone at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division