CLA-2-16:S:N:N7:229-888793
Mr. David Greenberg, Project Manager
T. Lauzon Lt‚e.
5500 C“te de Liesse
Ville Mont-Royal, Qu‚bec H4P 1A8
Canada
RE: The tariff classification of frozen, seasoned BEEF from
Canada.
Dear Mr. Greenberg:
In your letter dated July 21, 1993, you requested a tariff
classification ruling.
The product in question will be produced from beef cattle
slaughtered in various countries,--namely, in Australia, Canada,
Ireland, New Zealand, Nicaragua, Scotland or in the United States.
From countries other than the United States and Canada, this meat
will be imported into Canada in the form of frozen boneless beef.
Meat from the United States would be imported fresh or frozen.
When processed in Canada, the blocks of frozen beef are placed
on a conveyer belt and fed into a "block breaker," which breaks the
blocks up into smaller pieces for processing. These smaller pieces
are then forced through a grinder plate with holes of one-quarter
inch to three-quarter inch and coarse ground into pieces that will
range from one-quarter inch to three-quarter inches in diameter by
1 « inch to 3 inches in length. These ground pieces will, in turn,
be fed into a mixer (blender) in lots of 3,000 pounds. Seasoning
ingredients, in the amount of 2 percent by weight of salt and 0.5
percent by weight of pepper will be added to the mixer with the
meat pieces; and all ingredients will be vacuum blended to assure
that the seasonings will be fully dispersed on, and thoroughly
absorbed by, the individual meat pieces. After mixing, the
seasoned meat pieces are discharged into waxed boxes holding up to
60 pounds each. These boxes are then moved into a freezer and
frozen to a temperature of 10o Fahrenheit. Finally, these cartons
will be palletized and shrink wrapped for export in truckloads of
about 42,000 pounds.
During processing, the meat is maintained at a temperature of
26o Fahrenheit, or below, in order to prevent bacterial growth and
oxidation of the hemoglobin.
The classification of merchandise under the Harmonized Tariff
Schedule of the United States, Annotated, is governed by the
General Rules of Interpretation. The first General Rule requires
that the classification of goods be determined according to the
terms of the headings and any relative section or chapter notes.
The Explanatory Notes to the Harmonized Commodity Description and
Coding System, which represent the official interpretation of the
tariff at the international level, facilitate classification under
the Harmonized Tariff by offering guidance in understanding the
scope of the headings and the General Rules.
The "General" notes to Chapter 16 in the Explanatory Notes to
the Harmonized Tariff describe various products within the scope of
this chapter:
"This Chapter covers prepared foodstuffs obtained by processing
meat, meat offal, (e.g., feet, skins, hearts, tongues, livers,
guts, stomachs), blood, fish (including skins thereof),
crustaceans, molluscs or other aquatic invertebrates. The
Chapter covers such products which have been prepared or
preserved by processes not provided for in Chapter 2 or 3,
for example, products which have been:
...
(3) Prepared or preserved in the form of extracts, juices or
marinades, prepared from fish eggs as caviar or caviar
substitutes, merely covered with batter or bread crumbs,
truffled, seasoned (e.g., with both pepper and salt), etc."
Bold-face supplied for emphasis.
In our opinion, the addition and blending of 2 percent, by weight,
of salt and one-half percent, by weight, of pepper with 50 pounds
of ground beef pieces, as described, constitutes a processing of
this frozen beef beyond the levels permitted by the headings of
chapter 2 in that it creates a "seasoned" product, as ennumerated
in the "General" notes, cited above. Accordingly, this seasoned
beef is properly classifiable as a product of chapter 16.
The applicable subheading for this frozen, seasoned BEEF will
be 1602.50.6000, Harmonized Tariff Schedule of the United States
(HTS), which provides for Other prepared or preserved meat, meat
offal or blood:...Of bovine animals:...Other:...Not containing
cereals or other vegetables:...Other:...Other. The rate of duty
rate will be 4 percent ad valorem.
Goods classifiable under subheading 1602.50.6000, HTS, which
have originated in the territory of Canada, will be entitled to a
FREE rate of duty under the United States-Canada Free Trade
Agreement (FTA) upon compliance with all applicable regulations.
Eligibility for preferential duty treatment under the United
States-Canada FTA, in cases where goods classified in Chapter 16
contain non-originating materials, is conferred by a change from
one chapter to another [General Note 3(c)(vii)(R)(4)(aa), General
Notes to the Harmonized Tariff Schedule of the United States,
Annotated]. In the instant case, non- qualifying frozen, boneless
beef, a product of Chapter 2 when imported into Canada and, there,
processed into seasoned beef of Chapter 16, has undergone a change
in classification from one chapter to another and would be
considered qualifying goods.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport