N326355 N3 Ruling Active

The tariff classification of a bitumen and diluent blended product from Canada

Issued June 22, 2022 by U.S. Customs and Border Protection.

Tariff classification

HTS codes: 2709.00.1000

Headings: 2709

Product description

The product in question is a bitumen and diluent blended crude oil product. Bitumen is extracted from oil sands in Canada. The extracted bitumen is separated from existing water by mixing with diluent. Additional diluent is added to allow the bitumen to be transported by pipeline to a processing facility. At the facility, the diluent will be separated from the crude product. The diluent will be sold in the Canadian market. The remaining product will be a crude oil product containing a small percentage of diluent and having an API gravity testing within the heavy crude range. It is not a refined product. The product is a non-hazardous and non-flammable product that will be transported in dedicated rail cars to the United States Gulf Coast for further processing.

CBP rationale

The applicable subheading for the bitumen and diluent blended product will be 2709.00.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for petroleum oils and oils obtained from bituminous minerals, crude: testing under 25 degrees A.

Full text

N326355 June 22, 2022 CLA-2-27:OT:RR:NC:N1:137 CATEGORY: Classification TARIFF NO.: 2709.00.1000 Lisa Carpenter Charter Brokerage 22762 Weistheimer Pkwy., Suite 530 Katy, Texas 77450 RE: The tariff classification of a bitumen and diluent blended product from Canada Dear Ms. Carpenter: In your letter dated May 27, 2022, you requested a tariff classification ruling on behalf of your client, ConocoPhillips Company. The product in question is a bitumen and diluent blended crude oil product. Bitumen is extracted from oil sands in Canada. The extracted bitumen is separated from existing water by mixing with diluent. Additional diluent is added to allow the bitumen to be transported by pipeline to a processing facility. At the facility, the diluent will be separated from the crude product. The diluent will be sold in the Canadian market. The remaining product will be a crude oil product containing a small percentage of diluent and having an API gravity testing within the heavy crude range. It is not a refined product. The product is a non-hazardous and non-flammable product that will be transported in dedicated rail cars to the United States Gulf Coast for further processing. The applicable subheading for the bitumen and diluent blended product will be 2709.00.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for petroleum oils and oils obtained from bituminous minerals, crude: testing under 25 degrees A.P.I. The general rate of duty will be 5.25 cents/barrel. 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 the World Wide Web at https://hts.usitc.gov/current. 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 Christina Allen at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division

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