CLA-2-20:RR:NC:2:231 A88928
Mr. Alan Collins
The Collins Brokerage Company, LLC
645 Wintergate Court
Alpharetta, GA 30202
RE: The tariff classification and status under the North American
Free Trade Agreement (NAFTA) of peanut marzipan in meal form
from Mexico; Article 509
Dear Mr. Collins:
In your letter, dated October 24, 1996, you have requested
a ruling on
the status of peanut marzipan in meal form from Mexico under the NAFTA.
The peanut marzipan will be imported in the form of a meal. The
ingredients will be 50 percent peanuts, 50 percent sugar. It will be
manufactured in Mexico; the peanuts used may be of Mexican origin, Argentine
origin, or they may be USA additionals. The product, purchased in bulk form,
will be sold to a US peanut butter manufacturer, for use as a filling agent
in domestically manufactured peanut butter/paste.
The US Customs Laboratory has determined that less than 95 percent of
the submitted sample passes through a 1.25 mm aperture. Therefore, the
peanut marzipan does not meet the standard for meal that is articulated in
Ch. 11 Note 3(b). It cannot be classified as a food preparation of meal;
heading 1901 does not apply.
The applicable subheading for the peanut marzipan in meal form will be
2008.11.6000, Harmonized Tariff Schedule of the United States (HTS), 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 general rate of duty will be 143.4 percent ad valorem.
If the peanuts are of Mexican origin, the peanut marzipan in meal form,
being wholly obtained or produced entirely in the territory of Mexico, will
meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be
entitled to a free rate of duty under the NAFTA upon compliance with all
applicable laws, regulations, and agreements. Upon compliance with all
applicable laws, regulations, and agreements under NAFTA, articles from
Mexico classifiable in subheading 2008.11.6000, HTS, are subject to the quota
quantity restrictions listed in 9906.20.03, HTS, which limit the amount of
peanuts to the quantitative limits specified in U.S. Note 16 to Subchapter VI
of Chapter 99. The rate of duty will be free.
Alternately, articles valued not over 65.2 cents per kilogram are
classifiable in subheading 9906.20.04, HTS. The rate of duty will be 72.3
cents per kilogram.
Otherwise, articles valued over 65.2 cents per kilogram are classifiable
in subheading 9906.20.05, HTS. The rate of duty will be 110.8 percent ad
valorem.
The applicable subheading for peanut marzipan in meal form that is not
NAFTA eligible (produced from peanuts of Argentine origin or USA additionals)
will be 2008.11.6000, HTS. The rate of duty will be 143.4 percent ad
valorem.
This ruling is being issued under the provisions of Part 181 of the
Customs Regulations (19 CFR 181).
This ruling letter is binding only as to the party to whom it is issued
and may be relied on only by that party.
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 Ralph Conte at (212) 466-5759.
Sincerely,
Gwenn Klein Kirschner
Chief, Special Products Branch
National Commodity
Specialist Division