OT:RR:CTF:FTM H334497 BJK
Center Director
Agriculture and Prepared Products Center of Excellence and Expertise
U.S. Customs and Border Protection
6601 NW 25th Street
Miami, Florida 33122
ATTN: Joel Mascobetto, Supervisory Import Specialist
RE: Request for Internal Advice; Tariff Classification of Frozen Acai Juice
Dear Center Director:
This letter is in response to the internal advice request, dated September 18, 2023, initiated by Amafruits, LLC, concerning the tariff classification of frozen acai juice under the Harmonized Tariff Schedule of the United States (“HTSUS”). The subject merchandise was entered into the United States between November 30, 2022 to December 9, 2022 and classified as a fruit juice under heading 2009, HTSUS, specifically subheading 2009.89.7091, HTSUS Annotated (“HTSUSA”), which provides for “Fruit or nut juices (including grape must and coconut water) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Other: Other: Other.”
FACTS:
The merchandise at issue is described as “Organic Pasteurized 12% Acai.” The product contains 99.8% organic acai juice and 0.2% citric acid. It is pasteurized with 12% solids. The citric acid is for color preservation. The product contains more than 95% water and does not contain added sugar or other additives, such as vitamins or sweeteners. The product is sold in single strength form.
The acai juice is produced by washing and then soaking the acai fruit (i.e., acai berries) in water to loosen the fruit flesh from the core. The fruit is then placed into machines that separate the seeds from the fruit flesh. Once deseeded, the fruit (now just fruit flesh and juice) is processed with more water to thin the final product into a more juice-like consistency. The product is then placed into tanks where citric acid is mixed in to preserve the color. From these tanks, the product is transported via lines to be pasteurized, cooled, refrigerated, and then pumped into a final tank for packaging. To package the product, the acai juice is pumped from the final tank into a five-gallon pale lined with plastic, and then frozen. The acai juice in these five-gallon pales is imported frozen and sold frozen to customers that buy the product in bulk to reprocess into juice, sorbet, or other products as an ingredient.
A sample was submitted to the CBP Laboratory for analysis. The CBP Laboratory determined that the sample had a Brix value of 3.24 degrees. Per the U.S. Customs Laboratory Methods, USCL Method 20-08, Fruit Juices and Fruit Syrups: Identity and Degree of Concentration, fruit juices with a Brix value of 3.24 degrees are unconcentrated, i.e., in single strength form.
ISSUE:
What is the tariff classification of the frozen acai juice?
LAW AND ANALYSIS:
Classification decisions under the HTSUS are 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. GRI 6 states that for legal purposes, the classification of goods in subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable.
The 2022 HTSUS provisions under consideration are as follows:
0811 Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter:
0811.90 Other:
* * *
2008 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:
* * *
2009 Fruit or nut juices (including grape must and coconut water) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter:
2009.89 Juice of any other single fruit, nut or vegetable: Other:
2009.89.70 Other:
* * *
Chapter 20, HTSUS, Note 1 states that:
This chapter does not cover: (a) Vegetables, fruits or nuts, prepared or preserved by the processes specified in chapter 7, 8, or 11; . . . .
* * *
In addition, in interpreting the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
EN 08.11 states, in pertinent part, that:
Fruits and nuts which have been cooked by steaming or boiling in water before freezing remain classified in this heading. Frozen fruit and nuts cooked by other methods before freezing are excluded (Chapter 20).
* * *
General Note to Chapter 20 states, in pertinent part, that:
This Chapter includes:
Vegetables, fruit, nuts and other edible parts of plants prepared or preserved by vinegar or acetic acid.
. . . .
* * *
EN 20.08 states, in pertinent part, that:
This heading covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters, or in the preceding headings of this Chapter.
It includes, inter alia:
. . .
(3) Fruit (including fruit-peel and seeds) preserved in water, in syrup, in chemicals or in alcohol.
(4) Fruit pulp, sterilised, whether or not cooked
. . . .
* * *
EN 20.09 states, in pertinent part, that:
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 “extractor” 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.
. . .
As a result of these various treatments the fruit or vegetable juices may consist of clear, unfermented liquids. Certain juices, however (in particular those obtained from pulpy fruits such as apricots, peaches and tomatoes) still contain part of the pulp in finely divided form, either in suspension or as a deposit.
. . .
The juices of this heading may be concentrated (whether or not frozen) or in the form of crystals or powder provided, in the latter case, that they are entirely or almost entirely soluble in water.
. . .
Provided they retain their original character, the fruit, nut or vegetable juices of this heading may contain substances of the kinds listed below, whether these result from the manufacturing process or have been added separately:
. . .
(4) Standardizing agents (e.g., citric acid, tartaric acid) and products added to restore constituents destroyed or damaged during the manufacturing process (e.g., vitamins, coloring matter), or to “fix” the flavor (e.g., sorbitol added to powdered or crystalline citrus fruit juices). However, the heading excludes fruit juices in which one of the constituents (citric acid, essential oil extracted from the fruit, etc.) has been added in such quantity that the balance of the different constituents as found in the natural juice is clearly upset, in such case the product has lost its original character.
* * *
The product in question is frozen acai juice, of which 99.8% of the ingredients are juice derived from acai berries and 0.2% is citric acid used to preserve the acai berry color. In light of the high concentration of acai berries, we must first examine whether the product is classified under heading 0811, HTSUS, as “Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter.” EN 08.11 states, in pertinent part, that “Fruits and nuts which have been cooked by steaming or boiling in water before freezing remain classified in this heading. Frozen fruit and nuts cooked by other methods before freezing are excluded (Chapter 20)” (emphasis added). Here, the product undergoes a multiple step process and pasteurization that places washed and soaked acai berries into machines that separate the seeds from the fruit flesh. Once deseeded, the fruit, consisting of fruit flesh and juice are processed with more water to thin the final product into a more juice-like consistency. The product is then placed into tanks where citric acid is mixed in to preserve the color. From these tanks, the product is transported via lines to be pasteurized, cooled, refrigerated, and then pumped into a final tank for packaging. The multi-step production process goes beyond “steaming or boiling in water before freezing” as described in EN 08.11 and precludes the product from classification under heading 0811, HTSUS.
We next consider whether the product is classified in Chapter 20, HTSUS, and specifically whether the frozen acai juice is a prepared fruit under heading 2008, HTSUS, or a fruit juice under heading 2009, HTSUS, as imported. The General Note to Chapter 20 states, in pertinent part, that “This Chapter includes: . . . Vegetables, fruit, nuts and other edible parts of plants prepared or preserved by vinegar or acetic acid.” Here, the product consists of acai berries that, in addition to being processed, are also preserved with citric acid. Thus, the product can be classified in Chapter 20, HTSUS.
In discerning whether the product is a prepared fruit under heading 2008, HTSUS, or heading 2009, HTSUS, CBP looks to the Explanatory Notes for each heading. EN 20.08 provides that “[t]his heading covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters, or in the preceding headings of this Chapter.” Further, EN 20.08 states that included in heading 2008, HTSUS, are “Fruit (including fruit-peel and seeds) preserved in water, in syrup, in chemicals or in alcohol” and “Fruit pulp, sterilised, whether or not cooked.” Alternatively, EN 20.09 provides that “fruit and vegetable juices of this heading are generally obtained by mechanically opening or pressing fresh, healthy and ripe fruit or vegetables.” EN 20.09 states that “[a]s a result of these various treatments the fruit or vegetable juices may consist of clear, unfermented liquids. Certain juices, however . . . still contain part of the pulp in finely divided form, either in suspension or as a deposit.” EN 20.09 also states that the fruit juices of this heading may contain citric acid, so long as the citric acid has been added in a limited quantity such that the natural juice retains its original character. Finally, EN 20.09 provides for juices “whether or not frozen.”
The subject frozen acai juice is produced by washing and then soaking the acai fruit in water to loosen the fruit flesh from the core. The fruit is then placed into machines that separate the seeds from the fruit flesh. Once deseeded, the fruit flesh and juice are processed with more water to thin the final product into a juice-like consistency. The product is then placed into tanks where citric acid is mixed in to preserve the color. The final product contains 99.8% organic acai juice and 0.2% citric acid. While it is pasteurized with 12% solids, it contains more than 95% water and thus the limited solid content is best described as pulp content within a juice rather than solid fruit content. As discussed above, the production process for the acai juice coincides with the description of fruit juice production under EN 20.09. Further, the final product is best described as a frozen fruit juice, and EN 20.09 specifically provides for juices “whether or not frozen.” By application of GRI 1, the appropriate heading for the product is as a fruit juice under heading 2009, HTSUS, rather than a prepared fruit under heading 2008, HTSUS.
CBP next examines the appropriate subheading under heading 2009, HTSUS, to classify the frozen acai juice. Subheading 2009.89.70, HTSUS, provides for “Fruit or nut juices (including grape must and coconut water) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Juice of any other single fruit, nut or vegetable: Other: Other.” The subheadings preceding 2009.89.70, HTSUS, are specific to individual fruits that do not include acai berries, or berries generally. Subheading 2009.89.70, HTSU provides for “Other” types of juices, specifically Berry Juice, Mango Juice, and “Other.” Because the final product is composed of 99.8% organic acai berry juice, by application of GRI 6, the product is best classified under subheading 2009.89.70, HTSUS, as a “juice of any other single fruit, nut or vegetable: Other: Other: Berry Juice.”
HOLDING:
By application of GRI 1 and 6, the frozen acai juice is classified under heading 2009, HTSUS, and specifically under subheading 2009.89.70, HTSUS, which provides for “Fruit or nut juices (including grape must and coconut water) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Juice of any other single fruit, nut or vegetable: Other: Other: Berry Juice.” The 2022 general, column one rate of duty is 0.5¢ per 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 https://hts.usitc.gov/.
You are to mail this decision to the requestor (Amafruits) no later than 60 days from the date of the decision. At that time, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and to the public on the Customs Rulings Online Search System (“CROSS”), at https://rulings.cbp.gov/, and other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division