CLA-2 CO:R:C:S 556228 SER
Mr. James P. Ruff, Jr.
Belize Deep Water Fishing and Processing, LTD.
850 S. Vincent Ave., #57
Azusa, CA 91702
RE: Eligibility of fresh fish from Belize for duty-free
treatment under the CBI
Dear Mr. Ruff:
This is in reference to your letter of September 24, 1991,
concerning the eligibility of fresh fish for duty-free treatment
under the Caribbean Basin Initiative (CBI)(19 USC 2701-2706).
FACTS:
Under an agreement with the government of Belize, U.S.
commercial fishing operations will fish the territorial waters of
Belize. After the fish are caught, they are cleaned, gutted,
packed in ice and then delivered to the port of Belize City. In
Belize City, the fish are repacked in U.S.-origin insulated
containers and shipped to the U.S.
ISSUE:
Whether the fresh fish is eligible for duty-free treatment
under the CBI.
LAW AND ANALYSIS:
Under the CBI, eligible articles the growth, product, or
manufacture of designated beneficiary countries (BC's), may enter
the U.S. free of duty if such articles are imported directly to
the U.S. from the BC, and if the sum of 1) the cost or value of
the materials produced in a BC or BC's, plus 2) the direct cost
of processing operations performed in a BC or BC's, is not less
than 35% of the appraised value of the article at the time it is
entered into the U.S. See 19 U.S.C. 2703(a). The cost or value
of materials produced in the U.S. may be applied toward the 35%
value-content minimum in an amount not to exceed 15% of the
imported article's appraised value. See, section 10.195(c),
Customs Regulations (19 CFR 10.195(c)).
Belize is a BC, see General Headnote 3(c)(v)(A), Harmonized
Tariff Schedule of the United States Annotated (HTSUSA), however,
without further information we cannot determine the exact
classification, and, therefore, the eligibility under CBI cannot
be determined. It should be noted that many classification
subheadings for fresh fish are duty-free. The classification
subheadings which do not provide for duty-free treatment are
generally CBI eligible provisions.
Since you state that the fish will be imported directly to
the U.S. from Belize, the merchandise will receive duty-free
treatment if it is the growth, product, or manufacture of Belize,
and the 35% value-content requirement is met. Clearly, the fresh
fish at issue are a "product of" Belize. In addition, any
article which is wholly the growth, product, or manufacture of a
BC, shall normally be presumed to meet the 35% value-content
requirement. 19 CFR 10.195(d). Therefore, the fish classified
in CBI eligible tariff provisions will receive CBI duty-free
treatment. The U.S.-origin containers also will be duty-free
upon entry into the U.S.
HOLDING:
The fresh fish at issue is considered a "product of" Belize
and, therefore that fish which is classifiable in a CBI eligible
tariff provision will receive duty-free treatment. Fish which is
not classifiable in a CBI eligible tariff provision should be
examined to determined to see if it is classified in a provision
which provides for no duty.
Sincerely,
John Durant, Director