HQ 086469: MTBE

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                       HQ 086469

                                     April 2,1990

            CLA-2 CO:R:C:G 086469 JGH

            CATEGORY: Classification

            TARIFF NO.: 428.96

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

            RE: MTBE

            Dear Sir:

                 This decision is on the Application for Further Review of
            Protest 1001-9-002842, on the classification of methyl tertiary
            butyl ether under the Tariff Schedules of the United States
            (TSUS).

            FACTS:

                 MTBE was entered in November 1988, under the provision for
            motor fuel blending stock in item 475.27,TSUS.  Customs
            liquidated the entry under the provision for ethers of
            monohydric alcohols in item 428.96,TSUS.  MTBE is used as an
            octane enhancer for gasoline.

            ISSUE:

                 Whether MTBE is classifiable as an organic chemical in
            item 428.96,TSUS, or a petroleum product in item 475.27, TSUS.

            LAW AND ANALYSIS:

                 The Omnnibus Trade & Compliance Act of 1988 added item
            475.27, TSUS, to part 10 of Schedule 4, TSUS.  Headnote 2(c),
            part 10, Schedule 4, TSUS, defined motor fuel blending stock
            as any product (except naphthas provided for in item 475.35)
            derived primarily from petroleum, shale oil or natural gas,
            whether or not containing additives, to be used for direct
            blending in the manufacture of motor fuel.


















                                          -2-


                 In behalf of the importer it is argued that MTBE is
            derived from petroleum, since it is made from isobutylene
            (which is derived from petroleum) and methanol (which can be
            derived from natural gas), and therefore classifiable in
            part 10, Schedule 4, TSUS.

                 In describing the extent of the coverage of the petroleum
            schedule in the TSUS, part 10, the Tariff Classification Study,
            C.I.E. 1/64, points out that part 10 covers crude petroleum,
            shale oil, and natural gas, and a number of products derived
            therefrom.  Examples of the derived products are said to be
            crude petroleum, fuel oil, and distillates, such as kersosene,
            gasoline, naphtha, and benzene.

                  MTBE is not one of the above products.  It is produced
            synthetically from isobutylene and methanol and is a distinct
            organic chemical compound.  Rather than a petroleum product or
            a blendstock, it could be considered one of the additives which
            might be added to a blendstock.  Since MTBE is not classifiable
            in part 10, Schedule 4, TSUS, whether or not item 475.27, TSUS,
            is an actual use provision is not in issue.

            HOLDING:

                 MTBE is a discrete organic chemical compound classifiable
            in item 428.96, TSUS.

                 The protest is denied.

                 A copy of this decision should be furnished the protestant
            with the Form 19 Notice of Action.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division