CLA-2 CO:R:C:G 084353 JGH
Mr. Alan Litwin
F.W. Myers & Co., Inc.
69 Delaware Avenue
Buffalo, N.Y. 14202
RE: Classification under subheading 9802.00.50, HTSUS, of
diced, frozen U.S. chicken which is freeze dried in Canada
and returned to the U.S.
Dear Mr. Litwin:
Your letter of February 9, 1989, concerns the
classification of diced, frozen chicken of U.S. origin which is
sent to Canada for freeze drying and returned to the United
Diced, frozen chicken from the U.S. is sent to Canada,
where the water is removed and it is freeze dried. It is then
returned to the United States.
Whether the freeze-dry processing in Canada qualifies as
an alteration, within the meaning of subheading 9802.00.50,
LAW AND ANALYSIS:
Under this provision a duty is assessed upon the value of
alterations that are made on the articles exported for that
purpose. Alterations may result in an advancement in value or
an improvement in condition. However, the application of this
tariff provision is precluded in circumstances where the
operations performed abroad destroy the identity of the
articles or create new or commercially different articles.
Subheading 9802.00.50, HTSUS, treatment also is precluded where
the exported articles are incomplete for their intended use and
the foreign processing operation is a necessary step in the
preparation of manufacture of finished articles.
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In the processing described, the exported diced, frozen
chicken does not lose its identity as a finished food.
Therefore, whether in the frozen or freeze-dried state, they
have essentially the same characteristics.
Accordingly, the described Canadian processing is
considered an alteration within the scope of subheading
Imported freeze dried chicken is classifiable under
the provision for other meat or poultry in subheading
0210.90.20, HTSUS, dutiable at 5 percent ad valorem.
Frozen, diced chicken of U.S. origin which is sent to
Canada for freeze drying and then returned to the United
States, is classifiable in subheading 9802.00.50, HTSUS, upon
compliance with Section 10.8, Customs Regulations ( 19 CFR
John Durant, Director
Commercial Rulings Division
6cc: Area Director, New York Seaport