Tariff classification of anhydrous ethanol for fuel use from Brazil or Costa Rico.

N023666 February 27, 2008 CLA-2-34:OT:RR:E:NC:SP:237 CATEGORY: Classification TARIFF NO.: 2207.10.6000; 2207.20.0000; 9901.00.50 Mr. Jose Humberto Torres President Lifetime Energy Solutions Corp. P.O. Box 131 Caguas, Puerto Rico 00726 RE: Tariff classification of anhydrous ethanol for fuel use from Brazil or Costa Rico. Dear Mr. Torres: In your letter dated February 21, 2008 you requested a ruling on the tariff classification, country of origin, marking and eligibility for preferential duty treatment of anhydrous ethanol that is wholly manufactured, produced or grown in either Costa Rica or Brazil and imported for blending into gasoline. Undenatured anhydrous ethanol is classifiable in 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 anhydrous ethanol is classifiable in 2207.20.0000, HTSUS, which provides for denatured ethyl alcohol of any strength. The rate of duty will be 1.9 percent ad valorem. Importations under subheadings 2207.10.6000 and 2207.20.0000, HTSUS, are subject to an added duty of 14.27 cents per liter assessed on ethyl alcohol imported for fuel use in subheading 9901.00.50, HTSUS. A Federal Excise Tax of $13.50 per proof gallon may apply. Articles classifiable under subheading 2207.10.6000 or 2207.20.0000 and 9901.00.50, HTSUS, which are products of Costa Rica, may be entitled to duty free treatment under the Caribbean Basin Economic Recovery Act (CBERA), upon compliance with all applicable regulations. Articles classifiable under subheading 2207.10.6000 or 2207.20.0000 and 9901.00.50, HTSUS, which are products of Brazil, are not entitled to duty free treatment under the Generalized System of Preferences (GSP) and the above rates of duty apply. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), Customs Regulations {19 CFR 134.1(b)}, defines “country of origin” as the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of the marking laws and regulations. For country of origin marking purposes, a substantial transformation of an imported article occurs when it is used in manufacture, which results in an article having a name, character, or use differing from that of the imported article (19 CFR 134.35). Ethyl alcohol wholly manufactured, produced or grown in Brazil and imported in drums or other containers will be required to be marked on the outside of each drum or container with country of origin Brazil pursuant to 19 U.S.C. 1304. Ethyl alcohol wholly manufactured, produced or grown in Costa Rica and imported in drums or other containers will be required to be marked on the outside of each drum or container with country of origin Costa Rica pursuant to 19 U.S.C. 1304. To obtain the weekly commodity status report for ethyl alcohol subject to tariff rate quotas check the U.S. Customs web site at http://www.cbp.gov. At the web site click on “CEBB” then search for the term “textiles and quotas”. Additional requirements are imposed on ethyl alcohol by the Bureau of Alcohol, Tobacco and Firearms (National Revenue Center). Denatured and undenatured 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 administered by the U.S. Environmental Protection Agency. You may contact them at 402 M Street SW, Washington, D.C. 20460, phone (202) 554-1404. 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. For any questions regarding the ruling, contact National Import Specialist Frank Cantone at 646-733-3038. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division