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HQ 085987


March 13, 1990

CLA-2:CO:R:C:G 085987 SER

CATEGORY: CLASSIFICATION

TARIFF NO.: 2917.19.2510

Area Director of Customs
6 World Trade Center
New York, New York 10048

RE: Protest for further review 1001-9-003192, filed May 25, 1989: Maleic acid

Dear Sir:

This protest was filed on May 25, 1989, against your decision in the classification of maleic acid, in entry no. XXX- XXXXXXX, made XXXXXXXXXXXXXX, and liquidated XXXXXXXXXXXXXX. Our decision follows:

FACTS:

The maleic acid was entered in subheading 2917.19.5050, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), the provision for "Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulfonated, nitrated or nitrosated derivatives: Acyclic polycarboxylic acids, their anhydrides, halides, peroxides, peroxyacids and their derivatives: Other: Other: Other, Other," dutiable at 4 percent ad valorem.

You liquidated the maleic acid in subheading 2917.19.2510, HTSUSA, now subheading 2917.19.2300, HTSUSA, the provision for "Polycarboxylic acids, . . .: Acyclic polycarboxylic acids, their anhydrides . . .: Other: Maleic acid," dutiable at 3.7 percent per kilogram plus 16.8 percent ad valorem.

ISSUE:

Is the classification of the maleic acid at issue, in the subheading 2917.19.2510, HTSUSA, correct and legal?

LAW AND ANALYSIS:

Under the Tariff Schedules of the United States (TSUS) this chemical was subject to two rates of duty depending on whether the product was produced from benzenoid sources or from other materials. The protestant here is complaining that the current tariff, which attempts to be revenue neutral in comparison to TSUS, does not differentiate between maleic acid produced from benzenoid or from other sources. In fact the provision in which maleic acid is classifiable in the HTSUSA is dutiable at the rate applicable to the higher rate of duty of the benzenoid product under the TSUS.

It is claimed that your classification of the maleic acid as such is illegal and that the product should be classified in a manner analogous to the TSUS classification.

The United States Customs Service is an administrative agency and it has the responsibility of carrying out the statutory interpretation of the HTSUSA at the administrative level. It does not have the authority to formulate trade policy or change duty rates. Thus it must abide by the classification as determined by the HTSUSA which classifies the merchandise at issue under subheading 2917.19.2510, HTSUSA, (2917.19.23, HTSUSA, as of July 1, 1989).

As was detailed by the United States Trade Representative, the change in classification of maleic acid from the TSUS to the HTSUSA was completed totally within legal means. The United States and Japan conducted Article XXVIII negotiations on each other's proposed Harmonized System Tariff Schedules for over two years. In addition, the U.S. conversion to the Harmonized System was accomplished with full public participation. The Administration published the proposed new tariff three times for public examination, solicited public comments on an on-going basis for five years, and consulted actively with numerous trade associations.

HOLDING:

You should deny the protest. Maleic acid, whether or not of benzenoid origin, is classified in subheading 2917.19.2510, HTSUSA. A copy of this decision should be attached to the Form 19 to be returned to the protestant.

Sincerely,

John Durant, Director
Commercial Rulings Division

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