Classification of naval diesel fuel turned on essential character, with HFLS treated as high speed diesel oil.

High Flash Low Sulphur fuel remained classifiable as high speed diesel oil where its essential character was diesel oil supplied for naval use, and the altered flash point and sulphur content were only specification changes to meet naval requirements. Mere variation in those parameters did not change the product's substance into another oil. It was therefore correctly classified under sub-heading 2710.31 and not under sub-heading 2710.39.

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Issues: Whether High Flash Low Sulphur (HFLS) was correctly classifiable under sub-heading 2710.31 as high speed diesel oil, or under sub-heading 2710.39 as other oil.

Analysis: The product was found to be diesel oil supplied for naval use, with the higher flash point and lower sulphur content introduced to meet specific naval requirements. The Revenue did not effectively dislodge the findings that the goods remained HSD in substance and that the relevant specifications covered diesel fuel for naval applications. Mere variation in flash point and sulphur content did not change the essential character of the product away from high speed diesel oil.

Conclusion: HFLS was correctly classifiable under sub-heading 2710.31 as high speed diesel oil, and not under sub-heading 2710.39.

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