Newly Released CBP HQ Rulings April 10
The Customs Rulings Online Search System (CROSS) was updated April 10 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):
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H335011: 46 U.S.C. § 55102; 19 C.F.R. § 4.80b(a); New and Different Product; Proposed Transportation of Gasoline Blendstock
| Ruling: Based on the import and export specifications provided, 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 wouldn't be in violation of the Jones Act, 46 U.S.C. § 55102. |
| Issue: Whether or not, based on the product specifications provided, the proposed blending operations would result in the creation of “new and different products” 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 light naphtha onboard a non-coastwise-qualified vessel from one or more U.S. coastwise points. Following storing, blending, and testing, the resulting Finished Products will be transported aboard the non-coastwise qualified vessel from the non-coastwise point facility where blending occurred to the U.S. at a different coastwise point. The exported blending products and the resulting Finished Products to be returned to a U.S. coastwise point and state that “the light naphtha will be distinguishable from each Finished Product” because it would not meet the specifications even if 10% oxygenate in the form of ethanol were added to it. Therefore, the company contends that each of the Finished Products are a “new and different” product than the light naphtha and seeks a ruling confirming that the contemplated blending activity described above would result in a new and different product such that its transportation between coastwise points would not violate 46 U.S.C. § 55102. |
| Reason: Based on the characteristics provided for the light naphtha, a new and different article of commerce would be produced within the meaning of 19 C.F.R. § 4.80b(a) when the light naphtha is blended to make RBOB, CBOB and CARBOB as long as the product meets the respective specifications after blending with 10% ethanol. |
| Ruling Date: April 5, 2024 |