CLA-2-27:OT:RR:NC:N1:137

Ms. Lisa Carpenter
Charter Brokerage LLC
22762 Westheimer Parkway, Suite 530
Katy, TX 77450

RE: The tariff classification of diluent from Canada

Dear Ms. Carpenter:

In your letter dated April 26, 2018, you requested a tariff classification ruling for diluent We apologize for the delay as the information was sent to our laboratory for analysis.

According to the documentation submitted, “diluent” is a term used to describe a wide range of hydrocarbon products that are used as a diluting agent for the transportation by pipeline of certain heavy crude oils that are otherwise too viscous to flow through pipelines. You state that the diluent in question is a mixture of field condensate and processed condensate with the greater percentage of the product being processed condentate.

Based on laboratory review, the diluent sample is a light tan, clear, free-flowing liquid. It is a mixture of petroleum condensate, distillate petroleum natural gas liquid and a petroleum crude oil, which does not contain over fifty percent of any single hydrocarbon compound. The lab analysis shows that the product meets the terms of Subheading Note 4 to Chapter 27.

The applicable subheading for the diluent will be 2710.12.4590, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 percent or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than those containing biodiesel and other than waste oils: Light oils and preparations: Other: Mixtures of hydrocarbons not elsewhere specified or included, which contain by weight not over 50 percent of any single hydrocarbon compound. The general rate of duty will be 10.5 cents per barrel.

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.

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.

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 Christina Allen at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division