Tariff classification and duty status under UAFTA for ethanol from Australia.

NY M80915 March 3, 2006 CLA-2-27:RR:NC:SP:237 M80915 CATEGORY: Classification TARIFF NO.: 2207.10.6000; 2207.20.0000; 9901.00.50 Mr. Matthew Ingersoll Manildra Group P.O. Box 72 Auburn, N. S. W. Australia 1835 RE: Tariff classification and duty status under UAFTA for ethanol from Australia. Dear Mr. Ingersoll: In your letter dated March 2, 2006 you requested a binding ruling on the tariff classification and duty status for ethanol wholly produced in the territory of Australia exclusively from grain harvested in the territory of Australia. Undenatured ethanol will be classifiable in subheading 2207.10.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for undenatured ethyl alcohol of an alcoholic strength by volume of 80 percent volume or higher: for nonbeverage purposes. The rate of duty will be 2.5 percent ad valorem. Denatured ethanol will be classifiable in subheading 2207.20.0000, HTSUS, for denatured ethyl alcohol of any strength. The rate of duty will be 1.9 percent ad valorem. Importations for fuel use in subheadings 2207.10.6000 and 2207.20.0000, HTSUS, will be subject to added duty of 14.27 cents per liter on ethanol for fuel use in subheading 9901.00.50, HTSUS. Federal Excise Tax of $13.50 per proof gallon may apply. Ethanol imported for fuel use in subheading 2207.10.6000 or 2207.20.0000, HTSUS, that is the product of Australia, may be entitled to duty free treatment under the United States-Australian Free Trade Agreement (UAFTA) upon compliance with all applicable regulations. However, the added duty of 14.27 cents per liter still applies for ethanol imported for fuel use in subheading 9901.00.50, HTSUS. Federal Excise Tax of $13.50 per proof gallon may apply. 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/. Additional requirements are imposed by the Bureau of Alcohol, Tobacco and Firearms. Undenatured and denatured ethyl alcohol transferred in bond to a distilled spirits plant for fuel use may be exempt from the Federal Excise Tax provided all applicable regulations are met. You may contact them at 650 Massachusetts Avenue NW, Washington, D.C. 20226, phone (202) 927-8500 or (800) 398-2282. This merchandise may be subject to the requirements of the Toxic Substances Control Act (TSCA), administered by the U.S. Environmental Protection Agency. You may contact them at 402 M Street, S.W., Washington, D.C. 20460, telephone number (202) 554-1404, or at EPA Region II telephone number (908) 321-6669. 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 Frank Cantone at (646) 733-3038. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division