CLA-2-08:OT:RR:E:NC:2:228
Mr. Michael McCullough
Vandegrift Forwarding Co., Inc.
9317 Cheshire Road
Sunbury, OH 43074
RE: The tariff classification and status under the United States-Chile Free Trade Agreement (UCFTA), of freeze dried strawberries grown in Chile and further processed in China.
Dear Mr. McCullough:
In your letter dated September 10, 2009, on behalf of Chaucer Foods Inc., Syosset, NY, you requested a ruling on the status of freeze dried, sliced strawberries from China under the UCFTA.
The factual situation you present is the same one described in ruling N052803, issued to you on behalf of Chaucer Foods, on March 10, 2009. Whole or sliced strawberries, grown and frozen in Chile, will be exported to China, where they will be freeze dried or sliced and freeze dried. After processing in China, the dried strawberries will be shipped to the United States. Ruling N052803 stated the freeze dried sliced strawberries were classified in subheading 0813.40.2060, Harmonized Tariff Schedule of the United States (HTSUS), the provision for other dried berries, dutiable at 1.4 cents per kilogram. The ruling also stated the freeze dried berries were not substantially transformed in China, and were products of Chile for marking purposes. In your current letter you state the frozen strawberries will be imported into China in bond and remain under Chinese Customs supervision, and ask if the finished good, the freeze dried strawberries, qualify for reduced duty under the United States-Chile Free Trade Agreement.
General Note 26(b), HTSUS, sets forth the criteria for determining whether a good is originating under the UCFTA. General Note 26(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, goods imported into the customs territory of the United States are eligible for treatment as originating goods of a UCFTA country under the terms of this note only if they–
(i) were wholly obtained or produced entirely in the territory of Chile or of the United States, or both;
(ii) were produced entirely in the territory of Chile or of the United States, or both, and--
(A) each nonoriginating material used in the production of the good undergoes an applicable change in tariff classification set out in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (n); and satisfies all other applicable requirements of this note and of applicable regulations; or
(iii) the good is produced entirely in the territory of Chile or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.
Based on the facts provided, the merchandise does not qualify for preferential treatment under the UCFTA because none of the above requirements are met.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Stanley Hopard at (646) 733-3029.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division