HS 220720 Ethyl alcohol and other spirits, denatured, of any strength

What products does HS 220720 cover?

This subheading covers ethyl alcohol and other spirits that have been denatured, regardless of their alcoholic strength. Denaturation is the process of adding substances to alcohol to make it unfit for human consumption, thereby exempting it from excise duties typically levied on potable spirits. The WCO Harmonized System Explanatory Notes for Heading 2207 clarify that "denatured" refers to alcohol treated with denaturants in accordance with the laws and regulations of the respective countries. Examples include industrial methylated spirits, which are ethyl alcohol denatured with methanol or other specified substances, as defined by the USITC Harmonized Tariff Schedule and EU TARIC regulations for this specific subheading.

What falls outside HS 220720?

The following products are excluded from HS 220720: undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol or higher, which is classified under HS 220710. Similarly, undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol, along with other spirits, falls under HS 2208. Preparations containing alcohol, such as certain hand sanitizers or cleaning products where the alcohol is merely an ingredient in a mixture, are generally classified according to their primary function or composition elsewhere in the Nomenclature, rather than as bulk denatured alcohol. For instance, alcoholic perfumes are classified in Chapter 33, and medicinal preparations containing alcohol are typically found in Chapter 30.

What are common classification mistakes for HS 220720?

A common error is misclassifying denatured alcohol as undenatured alcohol, or vice versa, leading to incorrect duty and tax assessments. Importers sometimes fail to provide sufficient documentation proving the denaturation process and the specific denaturants used, which is crucial for proper classification under HS 220720. Another mistake involves classifying mixtures containing denatured alcohol as pure denatured alcohol, rather than as preparations of Chapter 30, 33, or other relevant chapters, depending on their end-use and composition. This often occurs when applying General Interpretative Rule (GRI) 1 and 6, where the specific nature of the product as a "mixture" or "preparation" is overlooked in favor of its alcoholic content, despite the alcohol not being the sole or principal characteristic.

How should importers classify products under HS 220720?

The correct procedure for classifying products under HS 220720 involves first verifying that the ethyl alcohol or other spirits have indeed undergone a denaturation process in accordance with the regulations of both the exporting and importing countries. Importers and customs brokers must obtain and retain certificates of analysis or manufacturer's declarations that clearly state the alcoholic strength by volume and list the specific denaturants added. It is essential to consult the WCO Harmonized System Explanatory Notes for Heading 2207, along with the specific national tariff schedules such as the USITC HTS or EU TARIC, to confirm the definition of "denatured" and any country-specific requirements. If the product is a mixture, careful consideration of GRIs 1, 3, and 6 is necessary to determine if the denatured alcohol imparts the essential character or if the product is better classified elsewhere as a preparation.