CLA-2 CO:R:C:F 953603 JGH
Area Director of Customs
New York Seaport
6 World Trade Center
New York, New York 10048
RE: Classification under the Harmonized Tariff Schedules of the
United States (HTSUS) of peppermint leaves reduced to a
uniform size. Internal Advice 15/93
Dear Madam:
This decision which involves the classification of
peppermint leaves imported by R.C. Bigelow, Inc., from Germany is
the subject of Internal Advice 15/93 initiated by your Office at
the request of the firm of Adduci, Mastriani, Meeks and Schill.
FACTS:
The imported peppermint leaves are said to have been dried
and cut, and shipped in 25 kg. bags. Subsequent to importation,
the leaves are said to be "fogged", cleaned thoroughly by
screening, magnets and dust collectors, then blended and put up
in tea bags.
The leaves were entered as mint leaves: crude or not
manufactured, in subheading 1211.90.20, HTSUS. Customs
reclassified the leaves under the provision for other mint leaves
in subheading 1211.90.40, HTSUS.
The sample submitted with the file was of peppermint leaves
ground to a very small and uniform size.
ISSUE:
Classification of processed peppermint leaves under the
HTSUS as crude or not manufactured mint leaves in subheading
1211.90.20 or other mint leaves in 1211.90.40, HTSUS. - 2 -
LAW AND ANALYSIS:
Since the language of the provision in the HTSUS is similar
to that of the previous tariff, the TSUS, great reliance is
placed on the definition of terms "Crude" and "Advanced" as used
in regard to natural products in that tariff. Headnote 3(b),
Part 3, Schedule 4, TSUS, defined "crude" as any product which
had not been advanced in value or improved in condition by
shredding, grinding, chipping, crushing, distilling,
evaporating, extracting, by artificial mixing with other
substances or by any other process or treatment beyond that which
is essential to its proper packing and the prevention of decay or
deterioration pending manufacture.
Headnote 3(c) defined the term "advanced", as used in
relation to natural products, as any product which has been
advanced in value or improved in condition from its crude state
by any mechanical or physical process whatever beyond that which
is essential to its proper packing and the prevention of decay
or deterioration pending manufacture...
Of special significance was felt to be S.B. Penick & Co. v.
United States, 272 F. Supp. 316, C.D. 3105 (1967). The issue
involved the classification of rubbed peppermint leaves, which
the court described as the inferior residue of the peppermint
leave harvest, which had already been somewhat broken and sieved;
a processing the court did not feel made the rubbed leaves into a
partially or wholly manufactured article, so that it remained in
the crude state.
The test is not whether the article has been made into a
finished article but whether it has been processed enough to be
considered advanced beyond the crude state. The elements quoted
by the court which would be taken into consideration to see if an
article was at least partially manufactured were:
1) The extent of the changes made in the raw material.
2) The amount of work remaining to be done before a finished
article could be produced.
3) The similarity between the article as imported and the
final product.
4) Whether the work on the imported merchandise was done
primarily to facilitate the shipping thereof or to
advance the article toward completion. - 3 -
In this case it is alleged that the mint leaves have been
merely cut and dried, and subsequent to importation have to be
"fogged", cleaned and screened before they can be blended and put
up in tea bags. However, it is evident from the sample submitted
that the leaves have been reduced to a very small and uniform
size at importation; a size suitable for use in tea bags. In
other words, from the appearance of the sample, it is obvious
that the processing prior to importation was done to advance the
article toward completed state; a processing which was something
more than that appropriate for packing or preservation.
Under the tariff definitions of "crude" and "advanced", it
is not necessary for a natural product to be completely finished
to be considered "advanced", but rather that the natural product
be advanced beyond that which is essential for proper packing and
preservation. Even under the standards set out in the Penick
case: (a) the tea leaves were cut to a uniform size; (b) they
have been processed beyond that required to facilitate shipping
and have been advanced toward completion; (c) the sample of the
imported tea is similar to the finished article; (d) the cleaning
and blending subsequent to importation while significant are not
more so than the advancement made prior to importation.
HOLDING:
Peppermint leaves cut to a uniform size suitable for putting
up in tea bags are processed to an advanced stage and, thus,
classifiable under the provision for other mint leaves in
subheading 1211.90.40, HTSUS.
A copy of this decision should be provided to the internal
advice requestor.
Sincerely,
John Durant, Director