CLA-2-20:OT:RR:NC:N2:231
Mr. Vladimir E. Papazov
VI Trade Corp.
22 Salk Drive
Highland, NY 12528
RE: The tariff classification and country of origin marking of peanuts in various forms from Argentina.
Dear Mr. Papazov:
In your letter dated September 12, 2013, you requested a tariff classification and country of origin ruling covering four different scenarios, as outlined below:
Raw, shelled peanuts of Argentine origin will be imported into the United States in 25-kg bags.
Shelled, dry-roasted and salted peanuts of Argentine origin will be imported into the U.S. in 25-kg bags.
Raw, shelled peanuts of Argentine origin will be delivered to a processor in Bulgaria, who will clean, dry-roast, salt and retail-pack the peanuts (with nitrogen gas) in 3-oz to 1-lb bags, which will then be imported into the U.S.
Raw, shelled peanuts of Argentine origin will be delivered to a processor in Bulgaria, who will clean, blanch, oil-fry, salt and retail-pack the peanuts in 3-oz to 1-lb vacuum bags, which will then be imported into the U.S.
The applicable subheading for the raw, shelled peanuts of scenario 1, if imported while the tariff rate quota remains open, will be 1202.42.4040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for peanuts (ground-nuts), not roasted or otherwise cooked, whether or not shelled or broken: other: shelled, whether or not broken: described in U.S. note 2 to chapter 12 and entered pursuant to its provisions: other. The rate of duty will be 6.6 cents per kilogram.
The applicable subheading for the raw, shelled peanuts of scenario 1, if imported after the tariff rate quota has closed, will be 1202.42.8040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for peanuts (ground-nuts), not roasted or otherwise cooked, whether or not shelled or broken: other: shelled, whether or not broken: other: other. The rate of duty will be 131.8 percent ad valorem. Also, products classified in subheading 1202.42.8040, HTSUS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.12.07—9904.12.17.
The applicable subheading for the roasted or fried, salted peanuts of scenarios 2, 3 and 4, if imported while the tariff-rate quota remains open, will be 2008.11.4500, HTSUS, which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included: nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together: peanuts (ground-nuts): other: described in additional U.S. note 2 to chapter 12 and entered pursuant to its provisions. The rate of duty will be 6.6 cents per kilogram.
The applicable subheading for the roasted or fried, salted peanuts of scenarios 2, 3 and 4, if imported after the tariff-rate quota has closed, will be 2008.11.6000, HTSUS, which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included: nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together: peanuts (ground-nuts): other: other. The rate of duty will be 131.8% ad valorem. Also, products classified in subheading 2008.11.6000, HTSUS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.12.07—9904.12.17.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
Some of these goods may also be subject to regulations or restrictions administered by the U.S. Department of Agriculture, Animal and Plant Health Division (APHIS). You may contact that agency regarding possible applicable regulations at the following location:
U.S. Department of Agriculture
APHIS
Plant Protection and Quarantine Permit Unit
4700 River Road, Unit 136
Riverdale, MD 20737-1236
Telephone number: 877-770-5990
With regard to country of origin, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Pursuant to 19 CFR Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such country the country of origin within the meaning of Part 134 of the regulations.
A substantial transformation occurs when a new and different article of commerce emerges from a process with a new name, character or use different from that possessed by the article prior to processing. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).
In scenarios 1 and 2, no further work and/or materials are added to the product outside of Argentina. In scenarios 3 and 4, the raw Argentine peanuts undergo cleaning, roasting, frying, blanching and/or salting in Bulgaria. However, those processes do not effect a substantial transformation. (See, for example, Headquarters Ruling Letter 730058 (June 2, 1987) and TD 85-158 (19 Cust. Bull. 360, October 15, 1985)). Accordingly, we find that the goods of all the scenarios under discussion retain their initial Argentine country-of-origin status. Therefore, all the packages of peanuts entering the United States must be marked to indicate that their contents are products of the original country, e.g., “Product of Argentina.”
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Nathan Rosenstein at (646) 733-3030.
Sincerely,
Myles B. Harmon
Acting Director
National Commodity Specialist Division