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Jet Fuel Substantially Transformed in India Through Distillation, CBP Says

Monday, December 03, 2018
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued a final determination concerning the country of origin of jet fuel that may be offered to the U.S. government under an undesignated government procurement contract. Any party-at-interest may seek judicial review of this determination by Jan. 2. CBP issues country of origin advisory rulings and final determinations as to whether an article is or would be a product of a designated country or instrumentality for the purposes of granting waivers of certain “Buy American” restrictions in U.S. law or practice for products offered for sale to the U.S. government.

According to CBP, the jet fuel is produced in India from U.S. or Mexican petroleum crude oil in a one-step transformation of the oil to a straight-run distillate. While the petitioner claimed that this process did not constitute a substantial transformation, CBP states in ruling HQ H296278 that the jet fuel is clearly a new and different article with a new name, character, and use produced by the distillation performed in India. As a result, CBP concludes that the country of origin of the jet fuel for government procurement purposes is India.

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