Mr. John Mulvihill
UPS Supply Chain Solutions
One UPS Way
Champlain, NY 12919
RE: The tariff classification of “Vegetable Oil Skimmings” and “Wet Gums” from Canada
Dear Mr. Mulvihill:
In your letter dated July 2, 2010 you requested a tariff classification ruling on behalf of TRT-ETGO Inc. Your request was sent to our laboratory for analysis. We apologize for the delay.
The subject products are “Vegetable Oil Skimmings”, and “Wet Gums” which are indicated to be by products from the processing of canola seeds. They are a mixture collected from the settling tanks in the degumming process. You state that they are used to make bio-fuel or wax. A sample of the “Wet Gums” was received with your submission and forwarded to the CBP Laboratory for analysis. No sample of the “Vegetable Oil Skimmings” was received.
The “Wet Gums” based on the Material Safety Data Sheets and laboratory analysis contains approximately 35 percent crude lecithin. The lecithin component is made up of 30 percent fatty substances, and 70 percent phospholipids. The remaining 65 percent consists of water left over from the degumming process. The makeup of the wet gums is characteristic of commercial crude lecithin.
The second product “Vegetable Oil Skimmings” based on the material safety data sheet consists of 30 to 60 percent canola oil, 5 to 25 percent of crude lecithin and 40 to 60 percent water.
The applicable subheading for the “Wet Gums” will be 2923.20.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Quaternary ammonium salts and hydroxides; lecithins and other phosphoaminolipids, whether or not chemically defined: Lecithins and other phosphoaminolipids: Other.” The rate of duty will be 5 percent ad valorem.
The applicable subheading for the “Vegetable Oil Skimmings” will be 3824.90.4090, Harmonized Tariff Schedule of the United States (HTS), which provides for “Prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included;: Other: Other: Fatty substances of animal or vegetable origin and mixtures thereof: Other.” The rate of duty will be 4.6 percent ad valorem.
Articles classifiable under subheading 2923.00.2000, and subheading 3824.90.4090, HTSUS, which are products of Canada, may be entitled to duty free-treatment under the North American Free Trade Agreement (NAFTA) upon compliance with all applicable requirements.
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 Paul Hodgkiss at (646) 733-3046.
Robert B. Swierupski
National Commodity Specialist Division