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HQ 082349


October 24, 1988

CLA-2 CO:R:C:G 082349 JGH

CATEGORY: CLASSIFICATION

TARIFF NO.: 475.30, 2710.00.2000

Mr. A. W. Baird
Shell Canada LTD.
400-4th Avenue S.W.
P.O. Box 100, Station M
Calgary, Alberta T2P 2H5

RE: Classification of a kerosene

Dear Mr. Baird:

Your letter of May 25, 1988, concerns the dutiable status of Shell "140 Solvent", product of your plant at Sarnia, Ontario.

FACTS:

The product, "140 Solvent", is said to be a crude oil fraction. Crude oil is pumped through heat exchangers and is desalted before being sent to a distillation tower. The fraction containing "140 Solvent" is said to be sent to a hydrocracker. Hydrocracking is described as a process in which hydrogen is added, with large molecules being broken down into smaller molecules, with partial saturation of aromatics occuring. Heteroatoms, such as sulfur, nitrogen, and oxygen are removed. The stream is then sent to a separator and then to a hydrogenator. In this last step the remaining aromatics are totally saturated. The stream is separated, and the "140 Solvent" fraction is said to contain no aromatics. The stream is said not to undergo reforming or catalytic cracking or any process in which aromatics are formed or added.

ISSUE:

Whether "140 Solvent" is a petroleum product for tariff purposes.

LAW AND ANALYSIS:

From a description of the processing of the product and the specification sheet supplied, for tariff purposes, "140 Solvent" is considered kerosene.

HOLDING:

"140 Solvent" is classifiable under the provision for kerosene in item 475.30, TSUS, the rate of duty is 0.25 cent per gallon. Under the Harmonized Tariff Schedules of the United States Annotated (HTSUSA) which will replace the TSUS on January 1, 1989, "140 Solvent" would be classifiable in subheading 2710.00.2000, HTSUSA. The rate of duty is 10.5 cents per bbl. If there are any changes in the wording of the HTSUSA prior to the effective date, this advice may not continue to be applicable.

Sincerely,

John Durant, Director

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