CLA-2-23:RR:NC:2:231 C87338

Dr. Adam Benado
Bioseparations, Inc.
1414 17th Street NW, Unit 803
Washington, DC 20036

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

Dear Dr. Benado:

In your letter dated April 25, 1998, you have requested a ruling on the status of peanut oilcake from Canada 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 Canada. The peanuts to be processed in that factory will be grown in Argentina.

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 0.45 cents per kilogram.

Each of the non-originating materials used to make the peanut oilcake has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)(23). Upon compliance with all applicable laws, regulations, and agreements under NAFTA, articles from Canada classifiable in subheading 2305.00.0000, HTS, will be subject to a free rate of duty.

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,

Robert B. Swierupski
Director
National Commodity
Specialist Division