CLA-2 CO:R:C:G 084270 SS
TARIFF NO. 2308.99.6080
RE: Soybean preparation known as Micro-Soya.
Mr. P. Marc Ham
Semences Prograin Inc.
145, Bas Riviere-Nord
St-Cesaire
Quebec, Canada JOL 1 TO
Dear Mr. Ham:
This letter is in response to your request of April 14,
1989, regarding a classification ruling for Micro-Soya, produced
in Canada, under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The subject merchandise is soybean which has been processed
into a product known as Micro-Soya (TradeMark), to be used in
animal feeds. Based on the facts submitted, Micro-Soya is
produced from soybeans by a series of treatments, each having a
specific effect. As a result, Micro-Soya is a product having a
different appearance and makeup from the original soybean. The
process is described as follows:
(1) soybeans are treated with approximately 1 million 2
hundred MHZ of infrared heat;
(2) a holding container, called a residual cooker,
transmits the heat throughout the soybeans. This radiation
treatment process (steps 1 & 2), micronization, is said to
eliminate urease and trypsic inhibitors from the soybean so
that all the proteins, oils etc., may be utilized by the
animals. This process also changes the appearance of the
soybean;
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(3) the resulting material is rolled into flakes by flaking
machines. This process greatly increases the palatability,
and improves digestion for the animals; and
(4) the material is cooked, during which time 1.5 percent
calcium carbonate is added. This process results in an
easier product flow.
It is stated that Micro-Soya may be used directly as animal
feed, or may be mixed with other ingredients to make a fully
balanced food ration.
Issue:
Whether the subject merchandise is properly classifiable in
heading 2304, HTSUS, which provides for oilcake and other solid
residues, whether or not ground or in the form of pellets,
resulting from the extraction of soybean oil; in heading 1201,
HTSUS, which provides for soybeans, whether or not broken; in
heading 2008, HTSUS, which provides in part for fruit, nuts and
other edible parts of plants, otherwise prepared or preserved; or
in heading 2308, HTSUS, which provides for vegetable materials
and vegetable waste ... of a kind used in animal feeding, not
elsewhere specified or included.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is governed
by the General Rules of Interpretation (GRI's). GRI 1 states, in
part, that classification shall be determined according to the
terms of the headings and any relative section or chapter notes.
The Explanatory Notes, the official interpretation of the HTSUS
at the international level, provide a commentary on the scope of
each heading of the Harmonized System, and are thus useful in
ascertaining the tariff classification of merchandise.
Importer states that until February 1989, the Micro-Soya
under consideration was classified under subheading 2304.00.00.
However, heading 2304, HTSUS, provides for oilcake and other
solid residues, whether or not ground or in the form of pellets,
resulting from the extraction of soybean oil. Based on the facts,
soybean oil is not extracted from the subject merchandise,
therefore precluding proper classification under this heading.
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The merchandise in issue is described in HTSUS headings
1201, 2008, and 2308. Heading 1201, HTSUS, specifically provides
for soybeans, whether or not broken. However, the Explanatory
Notes to this heading provide that even though items under this
heading may undergo moderate heat treatment, such treatment is
permitted only if it does not alter the character of the seeds or
fruits as natural products and does not make them suitable for a
specific use rather than for general use. As the facts indicate,
producing Micro-Soya from soybeans requires more than moderate
heating, and results in a product having a change of character as
well as becoming suitable only for a specific use as animal feed.
Heading 2008, HTSUS, 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. As an otherwise
prepared edible part of plants, soybeans are prima facie
classifiable under this heading. However, the subject soybean
has been processed in such a way that it is not suitable for
human consumption. It is processed soybean used only for animal
feed. Although neither the language of heading 2008 nor the
relevant Explanatory Notes delineate the scope of this heading,
the exemplars of this heading clearly suggest that the articles
properly classifiable under this heading are only articles for
human consumption.
On the other hand, heading 2308, HTSUS, provides for
vegetable materials and vegetable waste, vegetable residues and
byproducts, whether or not in the form of pellets, of a kind used
in animal feeding, not elsewhere specified or included. The
subject merchandise is a vegetable material of a kind used in
animal feeding, and is therefore specifically provided for under
this heading, rather than under heading 2008, HTSUS, which by
inference, provides only for those articles suitable for human
consumption.
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HOLDING:
The Micro-Soya in issue, which is used in animal feeding,
is properly classifiable in subheading 2308.90.6080, which
provides for vegetable materials and vegetable waste ... of a
kind used in animal feeding, not elsewhere specified or included,
other, other, dutiable at a rate of 3 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division
6 cc: A.D., N.Y. Seaport.
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