CLA-2-20:OT:RR:NC:N5:228

George Tuttle, III
Tuttle Law Offices
3950 Civic Center Drive, Ste 310
San Rafael, CA 94903

RE: The tariff classification of onion products from China

Dear Mr. Tuttle:

In your letter dated August 22, 2024, you requested a tariff classification ruling on behalf of your client, Pacific Meridian Group LLC.

An ingredients breakdown, narrative description of the manufacturing process, the manufacturing flowchart, product specification sheets and samples of five products accompanied your inquiry. The samples and documentation received with your request were forwarded to the Custom and Border Protection Laboratory for review. That review is now complete. We apologize for the delay in the issuance of this ruling.

The subject merchandise is described as various onion products which include onion powder, onion granules, ground onion, minced onion and chopped onion. Each variety is said to contain 100 percent onion.

The products are said to be produced in China, as follows:

Once harvested, the onions are washed, peeled, and disinfected in a sodium hypochlorite solution and washed again. Next, the onions are sliced into flakes and dried via a centrifugal dryer. The onion flakes are said to undergo dehydration at a temperature range of 80 to 90 degrees Celsius for approximately 3 to 3.5 hours until they reach an approximate moisture content of 7 percent. The dehydrated onion flakes, measuring approximately 9mm by 9mm, are sorted, inspected, cooled and temporarily stored until purchased from local producers. The semi-finished onion flakes are said to undergo further processing to remove additional moisture by what is said to be an additional baking step via a custom-built multi-layer continuous chain oven. The function of this process is to create a desirable flavor and aroma through the Maillard browning process in addition to deepening color characteristics. To achieve this, the onion flakes are subjected to heat treatment at a desired temperature range of 75 to 85 degrees Celsius for approximately 3 to 3.5 hours. The moisture content at the conclusion of this process is said to be lowered significantly, down to approximately 3.3 percent. The onion flakes are sorted, subsequent to milling and sifting to meet the appropriate specifications, depending on the final product (i.e., onion powder, onion granules, ground onion, minced onion, chopped onion). Lastly, the products are placed into temporary storage prior to mixing (to ensure color consistency), screening for physical hazards and packing for importation to the United States.

The CBP laboratory was guided by an industry-based method, which was formulated by ADOGA, the American Dehydrated Onion and Garlic Association, in the “Official Standards and Methods” guide, 15th edition, dated December 2022. The CBP laboratory reports indicate that the optical index range for the products tested is between 109 +/- 15.6 and 183.2 +/-5.5, depending on the specific onion variety (i.e., onion powder, onion granules, ground onion, minced onion, chopped onion).

The applicable subheading for all five onion products (onion powder, onion granules, ground onion, minced onion and chopped onion) will be 2005.99.2000, Harmonized Tariff Schedules of the United States (HTSUS), which provides for other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen, other than products of heading 2006 ... other vegetables and mixtures of vegetables... other...onions. The general rate of duty will be 4.5 percent ad valorem.

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 the World Wide Web at https://hts.usitc.gov/current.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition to subheading 2005.99.2000, HTSUS, listed above.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.63, in addition to subheading 2005.99.2000, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 2005.99.2000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 2005.99.2000, HTSUS, listed above.

The HTSUS, is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.

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.

The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. 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, please contact National Import Specialist Timothy Petrulonis at [email protected].
Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division