CLA-2-20:OT:RR:E:NC:N2:231
Mr. Gustavo A. Llano Dominguez
Manitoba Ltda
Cra 8 No. 34-56
Cali
Valle del Cauca 579986
Colombia
RE: The tariff classification and status under the United States-Colombia Trade Promotion Agreement of prepared macadamia nuts from Colombia
Dear Mr. Llano Dominguez:
In your letter dated May 13, 2014, you requested a ruling on the status of prepared macadamia nuts from Colombia under the U.S.-Colombia Trade Promotion Agreement.
The subject product is Macadamia Nuts which you state are grown and transformed into “Salted Macadamias” in Colombia. The product is prepared with other ingredients for which you did not indicate the country of origin. The finished product will be imported into the United States.
As you noted in your letter, this office previously issued New York Ruling N238161, dated February 25, 2013, in which we provided a merchandise description, tariff classification and general rates of duty applicable to the finished macadamias when imported into the U.S. The following paragraph is an excerpt from that ruling:
The goods in question are shelled, prepared macadamia nuts (“Salted Macadamias”) put up for retail sale in sealed, 35-gram metallized-plastic pouches. Although the submitted manufacturing flow chart is not entirely clear as to the nature of all steps in the production process, it is evident that “sea-salt syrup,” vegetable oil and antioxidant have all been added to the macadamias and thereby incorporated into the finished product.
The applicable subheading for the above-described “Salted Macadamias” will be 2008.19.9010, Harmonized Tariff Schedule of the United States (HTSUS), 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: Other, including mixtures: Other, including mixtures: Other: Macadamia nuts. The general rate of duty will be 17.9% ad valorem.
General Note 34(b), HTSUS, sets forth the criteria for determining whether a good is originating under the United States-Colombia Trade Promotion Agreement, as follows:
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of Colombia or of the United States under the terms of this note if–
(i) the good is wholly obtained or produced entirely in the territory of Colombia or of the United States, or both;
(ii) the good is produced entirely in the territory of Colombia or of the United States, or both, and--
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or
(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and
satisfies all other applicable requirements of this note and of applicable regulations; or
(iii) the good is produced entirely in the territory of Colombia or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.
For the purposes of subdivision (b)(ii)A), the term “used” means utilized or consumed in the production of the goods.
(c) (i) For purposes of subdivision (b)(i) of this note, the expression “wholly obtained or produced entirely in the territory of Colombia or of the United States, or both” means any of the following–
plants and plant products harvested or gathered in the territory of Colombia or of the United States, or both
Based on the information provided, the finished prepared macadamias qualify for preferential treatment under the U.S.-Colombia TPA because they will meet the requirements of HTSUS General Note 34(b)(i) (if all ingredients/“materials used” are of Colombian origin as stated), or General Note 34(b)(ii) (if any of the non-macadamia ingredients/“materials used” are not of U.S. or Colombian origin). Therefore, they will be entitled to a preferential free rate of duty under the U.S.-Colombia TPA upon compliance with all applicable laws, regulations and agreements.
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 on World Wide Web at http://www.usitc.gov/tata/hts/. This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Nathan Rosenstein at [email protected]
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division