CLA-2-20:OT:RR:NC:2:228
Mr. Charles Gabbert
Atalanta Corporation
Atalanta Plaza
Elizabeth, NJ 07206
RE: The tariff classification of canned artichoke hearts from Egypt; eligibility for duty-free treatment for products of the West Bank, Gaza Strip, or a Qualifying Industrial Zone; General Note 3(a)(v).
Dear Mr. Gabbert:
In your letter dated July 28, 2011 you requested a tariff classification ruling on documentation provided for review and its sufficiency for a duty free entry. You provided copies of the commercial invoice, packing list, Qualifying Industrial Zone (QIZ) certification, Generalized System of Preferences Certificate of Origin Form A and bill of lading for artichoke quarters, product of Egypt, imported into the United States on or about June 23, 2011. The samples provided were examined and disposed of. You stated that there were no issues on this commodity pending before Customs and Border Protection, or any court.
On August 9, 2011 in a telephonic discussion, you confirmed that the documentation was used for a recent importation into the Port of New York/Newark, and that you were seeking a ruling to determine the trade preference eligibility under the United States-Israel Free Trade Area Implementation Act of 1985 (ILFTA) for future importations of the same product. Additionally, you stated that although duty was paid on that importation and the entry had not yet liquidated, your company did not intend to seek a refund of duty based on this ruling.
On August 16, 2011 this office returned your request for a ruling citing the need for additional information, namely, the countries of origin of all ingredients contained therein, a complete description of all operations performed in the QIZ, the cost or value of all ingredients, and the cost of all processing operations. On September 27, 2011 you resubmitted your original request with a letter from the manufacturer with additional information.
Based on the information provided in both submissions, the product is “Del Destino” branded quartered artichoke hearts in a solution of water, salt with citric acid added, packed in a metal can holding five (5) pounds eight (8) ounces, or two and a half (2.5) kilograms, net weight.
The fresh artichokes, water and salt are products of Egypt. The cans are products of Israel, and the citric acid may be a product of China or European countries. The fresh artichokes from Egypt are said to be processed, canned, and labeled in Obour City, QIZ, Egypt; however, the cost or value of all ingredients and the cost of all processing operations were not provided.
The quartered artichoke hearts do not meet the requirement of the Harmonized Tariff System of the United States (HTSUS) General Note (GN) 3(a)(v)(A) that articles which are imported directly from the West Bank, the Gaza Strip, a qualifying industrial zone (QIZ) as defined in subdivision (G) of this subparagraph or Israel and are---(1) wholly the growth, product or manufacture of the West Bank, the Gaza Strip or a QIZ; or (2) new or different articles of commerce that have been grown, produced or manufactured in the West Bank, the Gaza Strip or a QIZ. . . . Further, GN 3(a)(v)(C) explains that the term “new or different articles of commerce” means that articles must have been substantially transformed in the West Bank, the Gaza Strip or a QIZ into articles with a new name, character or use. The fresh artichokes processed, canned and labeled in the QIZ do not result in substantial transformation to become a new product of the QIZ.
Therefore, the applicable subheading for the quartered artichoke hearts will be 2005.99.8000, HTSUS, which provides for other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen. . . other vegetables. . . other. . . artichokes. The rate of duty will be 14.9 percent ad valorem. In accordance with temporary modifications of the HTSUS established pursuant to trade legislation, the rate of duty for this product, if entered on or before December 31, 2012, will be 13.34 percent ad valorem, under subheading 9902.03.89, HTSUS.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
This merchandise is subject to the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at (301) 575-0156, or at their website www.fda.gov/oc/bioterrorism/bioact.html.
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 Bruce N. Hadley, Jr. at (646) 733-3029.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division