February 28, 2007 CBP Bulletin Notice on Palm Fatty Acid Distillate
In the February 28, 2007 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 41, No. 10), CBP published a notice revoking a classification ruling and treatment as follows:
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Revocation of ruling; revocation of treatment. CBP is revoking a ruling on the classification of palm fatty acid distillate. CBP is also revoking any treatment it has previously accorded to substantially identical transactions.
According to CBP, the revocations are effective for merchandise entered or withdrawn from warehouse for consumption on or after April 29, 2007.
Palm fatty acid distillate (PFAD). At issue is PFAD, a product that is produced by subjecting crude oil to heat and steam at reduced pressures. During this process, steam carries off the PFAD until it condenses into a liquid. After condensation, PFAD solidifies at room temperature into an amber-color. Once solidified, fatty free acids compose 85-90% of PFAD's total substance weight.
CBP is issuing HQ W967992 in order to revoke HQ 962807 and correctly classify subject merchandise under HTS 3823.19.2000, which provides for other industrial monocarboxylic fatty acids; derived from coconut, palm-kernel or palm oil, rather than under 3824.90.4090, which provides for other prepared binders for foundry molds or cores; chemical products and preparations of the chemical or allied industries, not elsewhere specified or included, etc.
CBP states that PFAD meets the terms of HTS heading 3823, because it is an industrial monocarboxylic fatty acid. Among other things, CBP notes that PFAD is produced through an industrial process that includes fractional distillation and that PFAD's chemical structure comports that of a monocarboxylic acid. Therefore, by application of General Rule of Interpretation (GRI) 1, PFAD should be classified in HTS heading 3823.
new: 3823.19.2000, 2.3%; previous: 3824.90.4090, 4.6%.
(See ITT's Online Archives or 07/26/06 news, (Ref: 06072645), for BP summary of proposed HQ 967992)
February 28, 2007 CBP Bulletin (Vol. 41, No. 10) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2007/