Newly Released CBP HQ Rulings Dec. 18-19

December 26, 2023 by Noah Garfinkel|Customs Rulings

The Customs Rulings Online Search System (CROSS) was updated with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):

H331021: 46 U.S.C. § 55102; 19 C.F.R. § 4.80b(a); New and Different Product; Proposed Transportation of Gasoline Blendstock

Ruling: The proposed blending operation as described above would result in the creation of a new and different product within the meaning of 19 C.F.R. § 4.80b(a). Therefore, the proposed transportation by a non-coastwise-qualified vessel would not be in violation of the Jones Act, 46 U.S.C. § 55102.

Issue: Whether, based on the product specifications provided, the proposed blending operation would result in the creation of a “new and different product” within the meaning of 19 C.F.R. § 4.80b(a), such that the proposed transportation by a non-coastwise-qualified vessel would not be in violation of 46 U.S.C. § 55102.

Item: The Company proposes to transport naphtha and C5 blending components onboard a non-coastwise-qualified vessel [ ] from a U.S. port [], to a non-coastwise point petroleum terminal located in [ ]. You state that the blending components will be blended at a facility in a non-coastwise point location [ ] with non-U.S. blendstocks (i.e. Eurograde gasoline) to produce Colonial Regular Gasoline.

Reason: Based on the information provided in your request and responses to our requests for additional information, including specifications and blending processes, LSSD has advised that the C5 does not meet ASTM D4814 specifications after blending with 10% ethanol because of low octane and low distillation temperature at T50, and that the naphtha does not meet ASTM D4814 specifications because of low octane. Therefore, LLSD advised that, based on the characteristics provided for both C5 and naphtha, a new and different product is produced within the meaning of 19 C.F.R. § 4.80b(a) when the C5 and naphtha are blended with Eurograde gasoline as long as the product meets ASTM D4814 specifications after blending with 10% ethanol. Therefore, we find that the blending operations proposed would result in a new and different product. Thus, under 19 C.F.R. § 4.80b, the subsequent transportation of the finished product aboard a non-coastwise qualified vessel would not be in violation of 46 U.S.C. § 55102.

Ruling Date: Dec. 15, 2023