CLA-2 CO:R:C:G 083651 RFC

Mr. W.M. Walker, Jr.
Universal Leaf Tobacco Company, Incorporated
P.O. Box No. 25099
Richmond, VA 23260

RE: Cigarette leaf tobacco

Dear Mr. Walker:

This ruling letter is in response to your request of December 2, 1988, on behalf of Universal Leaf Tobacco Company, Incorporated, concerning classification under the Harmonized Tariff Schedule of the United States (HTSUS), for cigarette leaf tobacco mechanically broken down into pieces 1/4 inch or less in size and 1/16 inch or less in size.

FACTS:

The goods consist of cigarette leaf tobacco mechanically broken down into pieces 1/4 inch or less in size and 1/16 inch or less in size.

ISSUE:

Whether mechanically broken-down leaf tobacco is classified as unmanufactured tobacco or as tobacco refuse under the HTSUS.

LAW AND ANALYSIS:

In Headquarters Ruling Letter 073512 of February 3, 1984 (copy enclosed), all cigarette leaf tobacco mechanically broken down into pieces under 1/2 inch in size was held to be stemmed cigarette leaf tobacco. Under this ruling (which is not binding in the instant case because the ruling was issued under the Tariff Schedules of the United States and not under the HTSUS), quite obviously, then, all cigarette leaf tobacco broken down into pieces 1/4 inch or less in size and 1/16 inch or less in size would necessarily also be considered stemmed leaf tobacco.

Classification of merchandise under the HTSUSA is governed -2-

by the General Rules of Interpretation (GRI's). GRI 1 states, in part, that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes...."

Subheading 2401.20.80, HTSUS, provides for unmanufactured tobacco (whether or not threshed or similarly processed): tobacco, partly or wholly stemmed/stripped: threshed or similarly processed: other. Explanatory Note 24.01(1) states, in part, that Heading 2401 covers "[u]nmanufactured tobacco in...stemmed/stripped, trimmed or untrimmed, broken or cut [form]...."

In your letter you state that the tobacco product for which you seek classification is "...derived from [the] mechanical processing of tobacco [and the] processing covers threshing, pneumatic separation [and] removing stems." As a result of this processing, the tobacco product falls squarely within the provisions of subheading 2401.20.80, HTSUS, and should be classified under this subheading (rather than under 2401.30.90, HTSUS, which provides for tobacco refuse: other).

HOLDING:

The above-described goods are classified under subheading 2401.20.80, HTSUS, which provides for unmanfactured tobacco (whether or not threshed or similarly processed): tobacco, partly or wholly stemmed/stripped: threshed or similarly processed: other.

No country of origin for the above-discribed goods was indicated in the above-mentioned letter of request. Most merchandise, however, is dutiable under the most-favored-nation rates in the General column under column 1 of the tariff schedule. In the instant case, under the most-favored-nation rates under this column, the above-described goods would be dutiable at the rate of 44.1 cents per kilogram.

Sincerely,

John Durant, Director
Commercial Rulings Division

Enclosure