In a recent ruling, U.S. Customs and Border Protection (“CBP”) decided that shippers must employ costly U.S.-flag vessels when shipping processed condensate to and from a foreign country to be blended as a diluent with heavy crude.  The ruling comes as a surprise to many because it assumes processed condensate and heavy crude oil are the same product, contrary to industry standards and previous rulings by the U.S. Department of Commerce which recognize these as distinct commodities.

Reed Smith discusses the background of CBP’s ruling, why it was surprising, and its implications for businesses moving forward.  For more information on this topic, please click here.