CLA-2 CO:R:C:F 957419 ALS
0201.30.8000; 0202.20.5000; 0202.20.8000;
0202.30.5000; 0202.30.8000; 9903.23.00;
9904.02.01-9904.02.37
Mr. Frank Pulley
Bar-B-Que Specialist, Inc.
1100 Cesery Blvd.
Suite 20
Jacksonville, FL 32211
RE: Reconsideration of New York Ruling Letter (NYRL) 801864 as
to Fresh Boneless Veal from the Netherlands, a Member
Country of the European Union (EU)
Dear Mr. Pulley:
This is in reconsideration of that portion of NYRL 801864
regarding fresh boneless veal from the Netherlands, a member
country of the European Union (EU). That ruling held that fresh
bone-in veal from the Netherlands was classifiable in subheading
0201.20.6000, Harmonized Tariff Schedule of the United States
(HTSUSA) (currently 0201.20.5000 or 0201.20.8000, HTSUSA). As
herein pertinent, it held that fresh boneless veal from the
Netherlands was classifiable in 0201.30.6000, HTSUSA (currently
0201.30.5000 or 0201.30.8000, HTSUSA). NYRL 801864 noted that
both categories of veal were generally subject to a rate of duty
of 4.4 cents per kilogram. That ruling, however, noted that
boneless veal of the EU was subject to a 100 percent duty
pursuant to 9903.23.00, HTSUSA.
FACTS:
The items under consideration, as noted in NYRL 801864, are
various primary cuts of fresh veal. These cuts range in size
from 2+ pounds to 10+ pounds. These cuts may include boneless
veal ribeye, topside, shortloin, legs, etc. These cuts of veal
are destined to hotel and restaurant supply companies as well as
hotels and restaurants and are shipped, as packed at the foreign
slaughter house, to those consignees without intermediate - 2 -
unpacking or processing, and are considered wholesale
transactions. Those companies prepare the veal for their
customers who may be the ultimate consumers of the veal or
another company, e.g., an airline, which will serve the veal to
its customers.
ISSUE:
What is the classification of fresh boneless veal from the
Netherlands, a member country of the EU?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's) taken in order.
GRI 1 provides that the classification is determined first in
accordance with the terms of the headings and any relative
section and chapter notes. If GRI 1 fails to classify the goods
and if the headings and legal notes do not otherwise require, the
remaining GRI's are applied, taken in order.
In considering the classification of the subject boneless
fresh veal we noted that meat for human consumption is
classifiable in Chapter 2, HTSUSA. We also noted that meat of
bovine animals, fresh or chilled, is classifiable in heading
0201, HTSUSA, depending on whether it is a cut which includes
carcasses and half-carcasses, other cuts with bone-in or
boneless. Heading 0202 similarly applies to the meat of bovine
animals when frozen. We further noted that the Explanatory Notes
to the Harmonized System (EN), which represents the opinion of
the international classification experts, specifies, in EN 01.02,
that all animals of the sub-family Bovinae and, among others, of
the genus Bos, are included in the term bovine animals.
Consultation with various dictionaries confirms that the meat
under consideration comes from such animals. Further, as
confirmed with the inquirer and government, the terms veal and
beef both refer to the meat of the same animal with veal coming
from the young animal and beef coming from the full grown animal.
We considered the proper classification of the boneless meat
of bovine animals whether fresh, chilled or frozen. As noted in
the above paragraph, meat of bovine animals is initially
classified in heading 0201 or 0202, HTSUSA, depending on whether
it is fresh, chilled or frozen. It is next divided into 3 broad
categories depending on whether it comes in as a carcass or half-
carcass, with the bone in or boneless. The subject boneless - 3 -
veal, insofar as it is not processed as described in Additional
U.S. Note 1(a) to Chapter 2, HTSUSA,, would come under the
provision for other boneless meat of bovine animals.
We next considered the applicability of subheading
9903.23.00, HTSUSA, to the instant product. That subheading, as
currently modified, which was inserted in the HTSUSA by
Presidential Proclamation 5759 of December 24, 1987, and was
effective on January 1, 1989, imposed a duty of 100 percent ad
valorem on "Beef, without bone (except offal), fresh, chilled or
frozen (provided for in subheadings 0201.30.5000, 0201.30.8000,
0202.30.5000, and 0202.30.8000)" from the member countries of
the European Community (EU).
Since veal and beef, while coming from the same animal, are
marketed as separate commodities and since the tariff provision
imposing the 100 percent duty on EU products only specifies beef,
although it references subheading which cover all boneless bovine
animals, a question arose as to the coverage of subheading
9903.23.00, HTSUSA. We informally consulted the U.S. Trade
Representative and the U.S. Department of Agriculture which were
involved in the application of the 100 percent duty and the
issuance of the aforementioned proclamation relative thereto.
Representatives of those offices advised us that it was not
intended that veal be excluded from coverage by the 100 percent
duty provision. Thus, the Presidential Proclamation did not
intend to create a tariff distinction among the boneless meats of
various bovine animals and, particularly, between the meats
coming from the same animal.
HOLDING:
Boneless veal other than that considered processed as that
term is defined in Additional U.S. Note 1(a) to Chapter 2,
HTSUSA, is classifiable in subheading 0201.30.5000, HTSUSA, if it
meets the requirements of U.S. Note 3 to Chapter 2, HTSUSA,
regarding a tariff rate quota, or 0201.30.8000, HTSUSA,
otherwise, if fresh or chilled. Boneless veal, if frozen, is
classifiable in subheading 0202.30.5000 or 0202.30.8000, HTSUSA,
depending on whether it meets the requirements of U.S. Note 3 to
Chapter 2, HTSUSA, regarding a tariff rate quota. Meat
classifiable in subheading 0201.30.5000 or 0202.30.5000, HTSUSA,
is subject to a general rate of duty of 4.4 cents per kilogram.
Meat classifiable in subheading 0201.30.8000 or 0202.30.8000,
HTSUSA, is subject to a general rate of duty of 30.3 percent ad
valorem.
- 4 -
Pursuant to subheading 9903.23.00, HTSUSA, veal classifiable
in subheading 0201.30.50 or 0202.30.50, HTSUSA, is subject to a
general rate of duty of 100 percent ad valorem if the article is
a product of a member country of the EU.
Pursuant to subheadings 9904.02.01-9904.02.37, HTSUSA, veal
classifiable in suheading 0201.30.80 or 0202.30.80, HTSUSA, which
is the product of a member state of the EU, is subject to varying
additional safeguard duties depending on its value or quantity.
Since the veal which is the subject of this ruling is a
product of the Netherlands, a member country of the EU, it is
subject to the provisions of subheading 9903.23.00 or 9904.02.01-
9904.02.37, HTSUSA.
NYRL 801864, as to fresh boneless veal from the Netherlands,
with the subheading changes, as noted above, introduced by the
Harmonized Tariff Schedule of the United States Annotated (1995),
is hereby affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division