HQ H284220
CLA-2 OT:RR:CTF:FTM H284220 TSM
Mr. John E. Staib
J. E. S. Forwarding Inc.
30 Montgomery Street
Suite 620
Jersey City, NJ 07302
RE: Revocation of NY N171621, NY 816865 and NY N128316; Modification of NY N258785 and NY N188787; The tariff classification of coconut water.
Dear Mr. Staib:
This is in reference to NY N171621, dated July 8, 2011, concerning the tariff classification of coconut water. This is also in reference to NY N188787, dated October 28, 2011, NY 816865, dated December 14, 1995, NY N128316, dated November 5, 2010 and NY N258785, dated November 24, 2014. In those rulings, U.S. Customs and Border Protection (“CBP”) classified the coconut water products under heading 2202, HTSUS, which provides for “Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored, and other nonalcoholic beverages, not including fruit or vegetable juices of heading 2009.” Upon additional review, we have found this classification to be incorrect. For the reasons set forth below we hereby revoke NY N171621, NY 816865 and NY N128316, and modify NY N188787 (coconut water with pulp) and NY N258785 (coconut water with pineapple and coconut water with pomegranate).
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625 (c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice was published in the Customs Bulletin, Volume 51, No. 29, on July 19, 2017, proposing to revoke NY N171621, NY 816865, and NY N128316, modify NY N258785 and NY N188787, and revoke any treatment accorded to substantially identical transactions. No comments were received in response to this notice.
FACTS:
NY N171621, issued to J. E. S. Forwarding Inc. on July 8, 2011, describes the subject merchandise as follows:
The subject merchandise is 100 percent young coconut water, and coconut water concentrate derived from coconut, separated from any solid materials, filled, weighed and stored in an ultra high temperature chiller prior to being packed into individual cartons. You have stated that the article will be imported frozen or aseptically packed in 20kg, 180kg and 1000kg bags, respectively.
ISSUE:
What is the tariff classification of the coconut water at issue?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
2009 Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter
Juice of any other single fruit or vegetable:
* * *
2009.89 Other:
* * *
2009.89.60 Other
* * *
2009.90 Mixture of juices:
* * *
2009.90.40 Other
* * *
2202 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored, and other nonalcoholic beverages, not including fruit or vegetable juices of heading 2009
In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
EN 20.09 provides, in pertinent parts, the following:
The fruit and vegetable juices of this heading are generally obtained by mechanically opening or pressing fresh, healthy and ripe fruit or vegetables. This may be done (as in the case of citrus fruits) by means of mechanical “extractors” operating on the same principle as the household lemon-squeezer, or by pressing which may or may not be preceded either by crushing or grinding (for apples in particular) or by treatment with cold or hot water or with steam (e.g., tomatoes, blackcurrants and certain vegetables such as carrots and celery). The juices of this heading also include coconut water.
* * *
Similarly, intermixtures of the juices of fruits or vegetables of the same or different types remain classified in this heading, as do reconstituted juices (i.e., products obtained by the addition, to the concentrated juice, of a quantity of water not exceeding that contained in similar non concentrated juices of normal composition).
* * *
Historically, CBP has classified coconut water as “waters … or other non-alcoholic beverages” of heading 2202, HTSUS. However, we note that fruit and vegetable juices are excluded from the heading by the text of 2202, HTSUS. Therefore, we must first determine whether the coconut water is a fruit juice. A coconut is the fruit, or seed, of a coconut tree. Coconut water is extracted by mechanically opening and draining the coconut. Therefore, we find that coconut water is a fruit juice of heading 2009, HTSUS. This conclusion is supported by the Explanatory Notes to heading 2009, which state that “The juices of this heading also include coconut water.”
Therefore, the coconut water products at issue in NY N171621, NY 816865, NY N128316, NY N258785 and NY N188787, are classified in heading 2009, HTSUS, which provides for “Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter.” Specifically, we find that the products at issue in NY N171621, NY 816865, and NY N128316, consisting of 100 percent coconut water, and NY N188787 (coconut water with pulp), are classified in subheading 2009.89.60, HTSUS, which provides for “Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Juice of any other single fruit or vegetable: Other: Fruit juice: Other.” Moreover, we find that the relevant products at issue in NY N258785 (coconut water with pineapple juice and coconut water with pomegranate juice), are classified in subheading 2009.90.40, which provides for “Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Mixtures of juices: Other.”
HOLDING:
By application of GRIs 1 and 6, we find that the subject merchandise is classified under heading 2009, HTSUS. Specifically, the products at issue in NY N171621, NY 816865, NY N128316 and NY N188787, are classified in subheading 2009.89.60, HTSUS, which provides for “Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Juice of any other single fruit or vegetable: Other: Fruit juice: Other.” The 2017 column one, general rate of duty is 0.5?/liter.
Moreover, the products at issue in NY N258785, are classified in subheading 2009.90.40, HTSUS, which provides for “Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Mixtures of juices: Other.” The 2017 column one, general rate of duty is 7.4?/liter.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the Internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N171621, dated July 8, 2011; NY 816865, dated December 14, 1995; NY N128316, dated November 5, 2010, are REVOKED. NY N258785, dated November 24, 2014 (coconut water with pineapple juice and coconut water with pomegranate juice), and NY N188787, dated October 28, 2011 (coconut water with pulp), are MODIFIED.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division