&&This good is commonly called a diluent. The diluent is comprised of a mixture of natural gas condensate, naphthas, and natural gasoline, which may be present in the mixture in varying relative portions. The diluent components are functionally identical in their properties. The components do not possess distinctly different characteristics and their relative volume percentages do not influence the end use of the mixture. The diluent is used to thin heavy crude petroleum oil (bitumen) sourced from oil sands in order to permit the pipeline transmission of crude oil to different locations.

&&Consideration was given to the terms of headings 27.09 and 27.10 of the Customs Tariff and the relevant World Customs Organization (WCO) Explanatory Notes to the Harmonized Commodity Description and Coding System (EN) for those headings.&&&&The good consists of a mixture of components that are classifiable in heading 27.09, which provides for crude petroleum oils and includes natural gas (or lease) condensate, and in heading 27.10, which provides for petroleum oils, other than crude, and includes naphthas and natural gasoline. The EN to heading 27.10 state that the petroleum and related products of this heading are "those which have undergone any process other than those specified in the EN to heading 27.09". The naphthas and natural gasoline components are obtained by distillation processes which are not allowed for products of heading 27.09 and thus, are classifiable in heading 27.10. As the good consists of a mixture of components that are classifiable in heading 27.09 and other components that are classifiable in heading 27.10, the diluent cannot be classified according to the headings or Chapter notes as directed by the General Rules for the Interpretation of the Harmonized System (GIR) 1.&&&&GIR 2(a) is not applicable to the good as it is imported in a complete or finished form. Also, GIR 2(b) does not apply as the good is prima facie classifiable under two headings.&&&&As the good consists of more than one material or substance that are classifiable under two tariff headings, the classification is to be determined according to the principles of GIR 3. As each of these headings refers to part only of the materials or substances contained in the mixture, these headings are regarded as equally specific and GIR 3(a) is not applicable. The lease condensate, natural gasoline and naphtha components of the diluent possess substantially the same technical properties, and they share a common commercial use, i.e., the thinning of highly viscous heavy oil to facilitate pipeline transportation. Moreover, each such component possesses essentially the same technical properties as the finished diluent. As such, it cannot be said that one component contributes more than the other to the "essential character" of the good. Their character fundamentally is the same. Therefore, the criterion of "essential character" for GIR 3(b) is inapplicable.&&&&GIR 3(c) directs that when goods cannot be classified by reference to Rule 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. As such, the diluent is classified in heading 27.10 as it appears last in numerical order.&&