CLA-2-02:RR:NC:2:231 F80573
Mr. Paul Langs
Tender Choice Foods, Inc.
4480 Paletta Court
Burlington, Ontario L7L 5R2
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of processed boneless beef manufactured in Canada from beef originating in Canada, the United States, Australia, New Zealand, Argentina, and Uruguay; Article 509
Dear Mr. Langs:
In your letter, dated December 7, 1999, you requested a ruling on the status of processed boneless beef manufactured in Canada from beef originating in Canada, the United States, Australia, New Zealand, Argentina, and Uruguay under the NAFTA.
The merchandise is comprised of processed boneless beef that is manufactured in Canada from beef originating in Canada, the United States, Australia, New Zealand, Argentina, and Uruguay. During the manufacturing process in Canada, 50-60 pound cartons of frozen, boneless beef are removed from storage at 0 degrees Fahrenheit and placed in a tempering room at 35 degrees F. for 8 hours. After tempering, the frozen blocks are fed into a frozen block grinder at 10-15 degrees F. The grinder reduces the meat to pieces measuring one inch in diameter and a maximum of three inches in length. Because frozen blocks tend to shatter when they are cut in a grinder, 95 percent of the ground pieces will be one inch or less at their thickest dimension. After grinding, the beef pieces will be discharged onto a food grade, vinyl belt that will convey them to a blender/mixer. The mixer will further reduce the frozen beef and ensure a homogeneous fat/lean ratio. After processing, the meat will be packed in poly lined, cardboard boxes weighing 60 pounds, waxed cartons, or combo bins of 2,000 pounds, and refrozen at 0 degrees F.
The processed boneless beef will be used by American manufacturers in the production of meatballs, nuggets, patties, and sausage.
The applicable subheading for processed boneless beef will be 0202.30.3000, Harmonized Tariff Schedule of the United States (HTS), which provides for meat of bovine animals, frozen, boneless, described in additional U.S. note 3 to chapter 2 and entered pursuant to its provisions, processed, other. The general rate of duty will be 10 percent ad valorem
Processed boneless beef that is manufactured in Canada from beef originating in Canada and/or the United States, being wholly obtained or produced entirely in the territories of Canada, Mexico, and/or the United States, 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.
Processed boneless beef that is manufactured in Canada from beef originating in Australia, New Zealand, Argentina or Uruguay does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials (the beef) used in the production of the goods will not undergo the change in tariff classification required by HTSUSA General Notes 12(b)(ii)(A) and 12(t)/2.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 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 Thomas Brady at 212-637-7064.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division