(CN) – The Court of International Trade improperly classified deodorizer distillate as a chemical product subject to import duties, the Federal Circuit ruled. Deodorizer distillate is a foul-smelling byproduct of the steam distillation process that removes flavors and odors from edible soybean oil.
Archer Daniels Midland Co. imported the residue in July 2003. It challenged the trade court’s classification, arguing that the deodorizer distillate should have been labeled a duty-free “residual product, rather than a chemical product.
The Washington, D.C.-based federal appeals court sided with Archer Daniels. Judge Dyk rejected the government’s claim that the two categories are mutually exclusive, saying the residual product classification is simply more specific.
The appeals court reversed and remanded.