QUO-1-RR:IT:EC 114717 CC
Jim Reynolds
Vice President
John A. Steer Co.
28 S. Second Street
Philadelphia, PA 19106
RE: Importation of frozen boneless beef subject to tariff-rate quota; in-quota rate;
over-quota rate; export certificate; 19 CFR § 132.15
Dear Mr. Reynolds:
This is in response to your letter, dated June 4, 1999, on behalf of Gurrentz International Corp., requesting we issue a ruling concerning the importation of beef.
FACTS:
You state that your client will be importing frozen boneless beef from Argentina and Uruguay. You state that the beef is subject to a tariff-rate quota under subheading 0202.30.5000 of the Harmonized Tariff Schedule of the United States (HTSUS) (the in-quota rate) or subheadings 0202.30.8000/9904.02.27 thru .37 (the over-quota rate). You state that your client will not have the export certificate for the subject beef and ask under those circumstances whether the beef can be imported at the over-quota rate. In addition you ask if the over-quota rate is paid whether the in-quota rate must also be paid. Other questions you pose are if the over-quota rate is paid are the safeguard duties also applicable, and if the over-quota rate is paid will the quota be charged.
ISSUE:
Whether beef subject to a tariff-rate quota may be imported at the over-quota rate when the importer does not possess an export certificate.
LAW AND ANALYSIS:
Concerning whether the subject beef may be imported at the over-quota rate,
19 CFR § 132.15(a) provides, in pertinent part, the following:
In order to claim the in-quota tariff rate of duty on beef, defined in 15 CFR 2012.2(a), that is the product of a participating country, defined in 15 CFR 2012.2(e), the importer must possess a valid export certificate at the time that such beef is entered, or withdrawn from warehouse for consumption.
It is clear from the language of 19 CFR § 132.15 that an export certificate is only required to claim the in-quota tariff rate on beef. Consequently, the subject beef can be imported without an export certificate at the over-quota rate.
You ask if the over-quota rate is paid must the in-quota rate be paid also. Subheading 0202.30.5000, HTSUS, the in-quota rate for the subject merchandise, provides a duty rate of 4.4¢ per kilogram. Subheading 0202.30.8000, HTSUS, the over-quota rate for the subject merchandise, provides a duty rate of 27.2% ad valorem.
One, not both, of these subheadings can be applicable to the same merchandise. Thus, if merchandise is entered under the over-quota rate in subheading 0202.30.8000, HTSUS, it can not be subject in addition to the duties due under that subheading the duty rate of 4.4¢ per kilogram, the in-quota rate.
Merchandise subject to the over-quota rate may also be subject to safeguard duties under Subchapter IV to Chapter 99, subheadings 0202.30.8000/9904.02.27 thru .37, HTSUS. Notes 1 and 2 to Subchapter IV, Chapter 99, HTSUS, state that certain agricultural goods subject to the over-quota rate are also subject to safeguard duties. This would include beef subject to the over-quota rate under subheading 0202.30.8000, HTSUS. The safeguard duties are based on either the value of the goods or the quantity. Normally, the safeguard duties are based on the value of the goods, but they can be based on quantity if the Department of Agriculture publishes a notice in the Federal Register to that effect. Consequently, since your client contemplates importing the beef under the over-quota rate under subheading 0202.30.8000, HTSUS, the goods will be subject to duty at the rate of 27.2% ad valorem plus safeguard duties pursuant to subheadings 0202.30.8000/9904.02.27 thru .37, HTSUS, based on either the value or quantity.
Finally, we note that the quota will not be charged for beef entered under the over-quota rate.
HOLDING:
Beef subject to a tariff-rate quota may be imported at the over-quota rate when the importer does not possess an export certificate.
Sincerely,
Jerry Laderberg
Chief
Entry Procedures and Carriers Branch