CLA-2-23:RR:NC:2:231 B84341

Mr. Adam Benado
Comet Rice Ingredients Company
P.O. Box 1055
Freeport, TX 77541

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of peanut oilcake from Mexico; Article 509

Dear Mr. Benado:

In your letter dated April 4, 1997, you have requested a ruling on the status of peanut oilcake from Mexico under the NAFTA. The product, "Peanut Oilcake," is comprised of pressed oilcake. During the manufacturing process, peanuts are cleaned, deshelled, dehulled, and heated, either in a roasting oven or by roasting in peanut oil. Afterwards the roasted peanuts are pressed and more than 75 percent of the oil is removed. This process results in peanut oil and press-cake. The press-cake may be subjected to grinding, pelletization, extrusion/expansion, or a clump-breaking operation.

The Peanut Oilcake will contain 8-16 percent oil. It will be in the form of pellets (1/8 to 1/4 inch) or powder. The color will be pale yellow to deep red, depending on the variety feedstock and heat treatment.

The factory is located in Mexico. The peanuts to be processed will be grown in Mexico.

The applicable tariff provision for the "Peanut Oilcake" will be 2305.00.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of peanut (ground-nut) oil. The general rate of duty will be 0.51 cents per kilogram.

The Peanut Oilcake, 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. 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