CLA-2-15:OT:RR:NC:N2:231
Mr. Stuart Seidel
Baker & McKenzie LLP
815 Connecticut Avenue, N.W.
Washington DC 20006
RE: The tariff classification of Palm Sludge Oil from Indonesia
Dear Mr. Seidel:
In your letter dated April 4, 2017 you requested a tariff classification ruling on behalf of your client, REG Marketing & Logistics Group, LLC (Ames, IA). We apologize for the delay as the sample provided had been forwarded to our laboratory for analysis. The review is complete and this office is issuing the following ruling.
The subject merchandise is Palm Sludge Oil. You have stated that crude palm oil is steamed, sterilized and diluted with water. The result of the aforementioned process is the discharge of a large amount of water in the form of Palm Oil Mill Effluent (also known as Palm Sludge Oil). The Palm Sludge Oil is the floating residual oil that is separated during the initial stage of palm oil mill effluent discharge to a pond. Furthermore, you state that after the Palm Sludge Oil is collected, the oil layer on the surface is separated from the water using an unspecified equipment consisting of an unspecified type of pump, a generator set, a mini centrifuge and a thermal gasifier reactor which heats the fluid oil which allows it to flow. The product will be used internally by REG Marketing & Logistics Group, LLC at their biofuel production facilities. Additionally, it will be used as feedstock for the producing of energy products sold to liquid fuel consumers. Palm Sludge Oil will be imported in 20 ft. ISO containers, 20.5 metric ton tanks and between 1000 ton to 10,000 metric ton bulk vessels, respectively.
You have suggested that this merchandise should be classified within heading 1511, Harmonized Tariff Schedule of the United States (HTSUS), which provides for palm oil and its fractions, whether or not refined but not chemically modified. Based on the information provided and the result of the Customs laboratory analysis, we find that the product is more appropriately classified elsewhere.
The applicable subheading for the Palm Sludge Oil will be 1522.00.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Degras; residues resulting from the treatment of fatty substance or animal or vegetable waxes. The rate of duty will be 3.5 percent ad valorem.
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 https://hts.usitc.gov/current.
Articles classifiable under subheading 1522.00.0000, Harmonized Tariff Schedule of the United States (HTSUS), which are products of Indonesia may be entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term “GSP.” You have stated that your client will be sourcing for palm oil from Malaysia in the future. Please note that products of Malaysia may not be entitled to duty free treatment under GSP.
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 Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division