CLA-2-14:OT:RR:NC:N2:231
David Trumbull
Agathon Associates
6 Beacon St
Suite No. 715 Boston, MA 02108
RE: The tariff classification of Mycelium from the Netherlands
Dear Mr. Trumbull:
In your letter dated March 23, 2023, you requested a tariff classification ruling on behalf of your client, Bolt Threads (Emeryville, CA).
The subject merchandise is Mycelium (also known as Shredded Fiber Biomass). You state that the mycelium is grown in a vertical farming facility powered by 100 percent renewable energy. Also, you state that prior to harvesting, the mycelium undergoes a kill-step process that consists of dehydrating the product to an eleven percent water weight, which stems further growth, and then bleach it with three percent hydrogen peroxide. The latter process allows the biomass to maintain its shelf life. The product, which will be imported in bales, will be processed further to manufacture a sustainable leather alternative in the United States.
In your letter you suggest classification of the subject merchandise under subheading 5305.00.0000, Harmonized Tariff Schedule of the United States (HTSUS) which provides for: “Coconut, abaca (Manila hemp or Musa textilis Nee), ramie and other vegetable textile fibers, not elsewhere specified or included, raw or processed but not spun; tow, noils and waste of these fibers (including yarn waste and garnetted stock).” We disagree. The Explanatory Notes (EN), which constitute the official interpretation of the nomenclature at the international level states the following: “However, fibres obtained from vegetable materials which, when raw or in certain other forms, fall in Chapter 14 (in particular kapok), are classified here only when they have undergone treatment indicating their use as textile materials, e.g., when they have been crushed, carded or combed in preparation for spinning.” While the biomass is intended for use as a textile material, as presented in its current state, it has not undergone treatment to indicate their use as textile materials, i.e., the fibers have not been carded or combed in preparation for spinning.
The applicable subheading for the Mycelium (Shredded Fiber Biomass) will be 1404.90.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Vegetable products not elsewhere specified or included: Other: Other.” The rate of duty will be Free.
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 at https://hts.usitc.gov/current
Importation of this product may be subject to import regulations administered by the U.S. Department of Agriculture (U.S.D.A.). Information regarding applicable regulations administered by the U.S.D.A. may be addressed to that agency at the following location:
U.S. Department of Agriculture A.P.H.I.S., PPQ 4700 River Road
Unit 136
Riverdale, MD 20737
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division