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HQ 958779




June 26, 1996

CLA-2 RR:TC:FC 958779 JGH

CATEGORY: CLASSIFICATION

TARIFF NO.: 1519.20.40

Port Director
U.S. Customs Service
P.O. Box 3130
Laredo, Texas 78044

RE: Decision on Application for Further Review of Protest No.2304-95-100171, on the Classification of Soy Oil Distillates. See also PFR 2304-95-100172 (958780).

Dear Sir:

This protest was filed at your port on an entry of soy oil distillates from Mexico made on April 11, 1995, liquidated on July 14, 1995, with the protest being filed on September 15, 1995.

FACTS:

The merchandise is described as a soy deodorized oil distillate; a mixture which typically includes monocarboxylic fatty acids (free fatty acids), carotenes, ketones, aldehydes, tocopherols, (natural antioxidants). The product is said to be obtained during the refining of soy bean oil and results from high vacuum steam distillation of soy bean oil. The standard specifications report, dated April 3, 1995, for the "deodorized distillate" listed:

Free fatty acids - 70 - 80 percent
Neutral acids - 25 - 30 percent
Total fatty acids - 85 - 95 percent
Water - 5% (Max.)

The soy oil distillate was entered and liquidated under the 1995 subheading 1507.90.4040, HTSUS, which provides for other soybean oil and its fractions, whether or not refined, but not chemically modified..Other (fully refined, washed, bleached or deodorized). For 1995, the duty rate for products of Mexico was 13.5 percent ad valorem.

ISSUE:

Classification of a 1995 entry of soy deodorized distillate under the HTSUS.

LAW & ANALYSIS:

The protestant argues that the merchandise is classifiable under the provision for other industrial monocarboxylic fatty acids; acid oils from refining, in the 1995 subheading 1519.19.40, HTSUS. Products of Mexico classifiable under this provision were duty free.

The Explanatory Notes to heading 1519 state that the heading covers, inter alia, fatty acid distillate, obtained from fats and oils which have been subjected to vacuum distillation in the presence of steam as part of a refining process. Fatty acid distillate is characterized by a high free fatty acid (ffa) content. The technical literature submitted by the producer concerning the "deodorized distillate" appears to conform to the description of the products covered by heading 1519 in the Explanatory Notes. It might be noted that the technical information submitted in this case is the same as submitted with Protest For Further Review No. 2304-95-100172, (956780), except for the producer's invoice of April 4, 1995 (Factura No. 328).

This invoice shows a distillate value consistent with that appearing on the entry Form 7501, dated April 11, 1995: "US 17, 542.26". The April 4, 1995, producer's invoice does not mention the presence of tocopherols. While the producer's form of May 12, 1995, does mention a "5.9% tocopherol" content, it is not clear that this invoice has any relation to the April entry. However, it might be noted that not only did the May 17,1995, entry list a tocopherol content, while the entered amount was similar to that entered in April 4, 1995, the value for the May entry was considerably more than the April. On the basis of this evidence, it is believed that this entry, in contrast to the May entry (958780) did not contain a commercial amount of tocopherols but, nonetheless, was a fatty acid distillate, in view of the free fatty acid content (70 - 80 percent)and in the light of the technical information of record.

HOLDING:

The soy deodorized distillate described above, lacking any or a commercially significant amount of tocopherols, is classifiable under the provision for other industrial fatty alcohols in subheading 1519.20.40, HTSUS (1995). Products of Mexico classifiable under this subheading were duty free. Your are directed to allow the protest in full. A copy of this decision should be furnished to the protestant with the Form 19 Notice of Action.

In accordance with Section 3A(11)(B) of the Customs Directive 0993550-065, dated August 3, 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 liquidation of the entry in accordance with the decision must be accomplished prior to the 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 Ruling Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,
John Durant, Director
Tariff Classification
Appeals Division

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