CLA-2-27:OT:RR:NC:N:5 137
Lisa Carpenter
Charter Brokerage LLC
22762 Westheimer Parkway, Suite 530 Katy, TX 77450
RE: The tariff classification of renewable diesel (R100) from Finland
Dear Ms. Carpenter:
In your letter dated October 18, 2023, you requested a tariff classification ruling on behalf of your client, Neste US, Inc.
The product under consideration is referred to as Neste MY Renewable Diesel R100 (MYRD R100). It is a finished renewable diesel product, produced from feedstocks of waste oils and fats coming from various sources such as food, fish, meat, vegetable oils, and residue from vegetable oil processing. It is produced using a refining process in which the feedstocks are first pre-treated, followed by a hydrodeoxygenation process and isomerization. The feedstocks then undergo a distillation process known as fractionation to separate the renewable diesel from naphtha and propane. You note that MYRD R100 is a fuel with a virtually identical chemical composition to petroleum diesel, enabling it to be used in all diesel engines in up to 100% concentration. You further note that MYRD R100 can be substituted in existing diesel-powered engines without modification and meets the same ASTM D975 specification as petroleum-produced diesel. MYRD R100 can be distributed for retail sales using existing delivery infrastructure, such as pipelines and fuel dispensaries. The documentation provided states that it has been approved for use in Cummins, Detroit Diesel, Caterpillar, Volvo Trucks, Paccar, Mack, John Deere and many other international brand engines.
You suggest classification in 2710.19.1102, Harmonized Tariff Schedule of the United States (HTSUS). This office disagrees. The instant product is substantially similar to the product described in HQ ruling H258443 dated October 10, 2016. In this ruling, CBP found that the product was a “similar oil” within the meaning of Note 2 to Chapter 27, and thereby classified it in 2710.19.4590.
The applicable subheading for the MYRD R100 renewable diesel will be 2710.19.4590, 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: Other: Other: Mixtures of hydrocarbons not elsewhere specified or included, which contain by weight not over 50 percent of any single hydrocarbon compound: Other. The general rate of duty will be 10.5¢/bbl.
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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division