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HQ 956973




February 17, 1995

CLA-2 CO:R:C:F 956973 RC

CATEGORY: CLASSIFICATION

TARIFF NO.: 3302.90.1050

District Director of Customs
1 East Bay Street
Savannah, Georgia 31401

RE: Application for Further Review of Protest No. 1703-94-100076, filed June 24, 1994, concerning the classification of d'limonene and orange oil mixture.

Dear Sir:

This is a decision on a protest filed against your decision in the classification of goods entered December 12, 1993 and liquidated June 10, 1994.

FACTS:

You classified the product in subheading 3301.12.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), the provision for essential oils of orange, dutiable in 1993 at the column one general rate of 6 percent ad valorem. This represented a change from the protestant's entered classification under subheading 3302.90.1050, HTSUSA, the provision for "Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw material in industry: Other: Containing no alcohol or not over 10 percent of alcohol by weight, Other," with a claim of column one special duty-free treatment as a product of a beneficiary country of the Generalized System of Preferences.

This product, described as a mixture of Brazilian d'limonene with orange peel oil, is imported in bulk from Brazil. Brazilian d'limonene is produced from the distillation of orange peel molasses. The other product, orange essential oil, is derived from cold pressed orange peel. The mixture is stated to be used in the manufacture of resins that form a raw material for use in the rubber, adhesives, and plastics industries.

ISSUE:

Whether a deliberate mixture of d'limonene and orange oil is properly classified as a mixture of odoriferous substances or orange essential oil.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRIs) taken in their appropriate order provide a framework for classification of merchandise under the HTSUS. Most imported goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relative section or chapter notes. The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRIs.

The classification of each component in this mixture would be as follows. Chemically pure d'limonene of a purity of 96 percent or higher is classifiable in heading 2902 as a cyclo- terpene, under the provision for cyclic hydrocarbons. Essential oil of orange is classifiable in heading 3301 under the provision for essential oils of citrus fruit. Confusing the issue, however, is the fact that essential oil of orange contains d'limonene among many other components. Therefore, it may not be immediately apparent from composition alone where classification is indicated. We also must determine whether deliberate mixing or combining has taken place.

Heading 3302 provides for "Mixtures of odoriferous substances and mixtures...with a basis of one or more of these substances, of a kind used as raw materials in industry." Therefore, mixtures of these oils are classifiable at the heading level according to GRI 1, without the need to resort to the rules for mixtures contained in subsequent GRIs. Since we are informed by the importer that this product is not suitable for use in the food and drink industries but, rather, is used as and industrial raw material, it is properly classified in subheading 3302.90.1050.

HOLDING:

We find that this mixture of d'limonene and orange oil falls into subheading 3302.90.1050, the provision for "Mixtures of odoriferous substances and mixtures...with a basis of one or more of these substances, of a kind used as raw materials in industry: Other: Containing no alcohol or not over 10 percent of alcohol by weight, Other." This provision is eligible for duty free treatment as a product of Brazil under the Generalized System of Preferences.

You are instructed to allow the protest in full. A copy of this decision should be attached to the Customs Form 19, Notice of Action on the protest, to be returned to the protestant.

In accordance with Section 3 A (11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days
from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division

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