CLA-2-20:OT:RR:NC:2:228
Ms. Pilar Galvan
Logistics Manager
Agro Sevilla – U.S.A., Inc.
340 Herndon Parkway
Herndon, VA 20170
RE: Eligibility of Stuffed Green Olives, Pitted Green Olives and Sliced Green Olives for duty-free treatment under the Generalized System of Preferences (GSP) from Argentina
Dear Ms. Galvan:
In your letter dated November 16, 2011, you requested for a binding ruling concerning the eligibility of Stuffed Green Olives and Sliced Green Olives from Argentina for duty-free treatment under the Generalized System of Preferences (GSP). Additional information, clarifying the kind of containers and drained weight of the products presented in your November 16th letter, was provided via an e-mail transmission on December 12, 2011. In the e-mail, you added two new products, Gallon Pitted Green Olives, and Alba Stuffed Green Olives, to your ruling request, and added to the names of the first two products.
In your submissions you state that the Argentina-origin Gallon Stuffed Green Olives, Gallon Pitted Green Olives, Gallon Sliced Green Olives and Alba Stuffed Green Olives, are packed in containers weighing, in the order, 2.369 kilograms, 2.060 kilograms, 2.163 kilograms and 0.536 kilograms, drained weight. In order respectively, they are classified in subheading 2005.70.2550, 2005.70.2540, 2005.70.2560 and 2005.70.2550, of the Harmonized Tariff System of the United States (HTSUS).
To hasten the transportation, the products will be shipped from Argentina to the United States through the intermediary country Chile. Your question is whether the prepared or preserved green olives originating in Argentina are eligible for preferential duty treatment under the GSP when they are shipped through an intermediary country to the United States (U.S.).
Title V of the Trade Act of 1974, as amended (19 U.S.C.A. 2461-65), authorizes the President to establish a Generalized System of Preferences to provide duty-free treatment for eligible articles from beneficiary developing countries (BDCs). Articles produced in a BDC may qualify for duty-free treatment under the GSP if the goods are imported directly into the customs territory of the U.S. from the BDC and the sum or value of materials produced in the BDC plus the direct costs of the processing operations performed in the BDC is equivalent to at least 35 percent of the appraised value of the article at the time of entry into the U.S. See 19 U.S.C. 2463(a)(2) and (3).
In the present case, we will assume that the country of origin of the products under consideration is Argentina. Under General Note 4(a), HTSUS, Argentina is designated as a BDC for GSP purposes. General Note 4(b)(ii) and (c), HTSUS, provide, in part, that special tariff treatment under the GSP is indicated in the “Special” subcolumn in the tariff by the symbols "A," "A*" or "A+." It is assumed for the purposes of this ruling that the imported prepared or preserved green olives are correctly classified in the respective subheadings listed above. These tariff provisions are GSP-eligible. We will also assume that the minimum 35 percent local value-content requirement is met. However no evidence was presented with your submissions to support the claim for GSP eligibility.
The remaining issue in this case concerns whether the imported products from Argentina will be considered to be "imported directly" from Argentina to the United States when transshipped through Chile. A detail description of the transportation process from Argentina to the United States via Chile was not provided in your submissions. The "imported directly" requirement is defined in 19 C.F.R. § 10.175, in pertinent part, as follows:
(a) Direct shipment from the beneficiary country to the U.S. without passing through the territory of any other country; or
(b) If the shipment is from a beneficiary developing country to the U.S. through the territory of any other country, the merchandise in the shipment does not enter into the commerce of any other country while en route to the U.S., and the invoice, bills of lading, and other shipping documents show the U.S. as the final destination; or
(c) If shipped from the beneficiary developing country to the U.S. through a free trade zone in a beneficiary developing country, the merchandise shall not enter into the commerce of the country maintaining the free trade zone, and
(1) the eligible articles must not undergo any operation other than:
(i) sorting, grading, or testing,
(ii) packing, unpacking, changes of packing, decanting or repacking into other containers,
(iii) affixing marks, labels, or other like distinguishing signs on articles or their packing, if incidental to operations allowed under this section, or
(iv) operations necessary to ensure the preservation of merchandise in its condition as introduced into the free trade zone.
(d) If the shipment is from any beneficiary developing country to the U.S. through the territory of any other country and the invoices and other documents do not show the U.S. as the final destination, the articles in the shipment upon arrival in the U.S. are imported directly only if they:
(1) remained under the control of the customs authority of the intermediate country;
(2) did not enter into the commerce of the intermediate country except for the purpose of sale other than at retail, and the port director is satisfied that the importation results from the original commercial transaction between the importer and the producer or the latter’s sales agent; and
(3) were not subjected to operations other than loading and unloading, and other activities necessary to preserve the articles in good condition.
The products shipped from Argentina to the United States via Chile will be "imported directly" if the transshipment process is as described in 19 C.F.R. 10.175 (b), (c) or (d). In that case, they may be eligible for the preferential tariff treatment under the GSP assuming they are properly classified in the respective subheadings as noted above, and the minimum local value-content requirement is also met.
Please note that, pursuant to 19 C.F.R. 10.174, the port director may require that appropriate shipping papers, invoices, or other documents be submitted within 60 days of the date of entry as evidence that the articles were "imported directly". In addition, this provision states that any evidence of direct shipment required by the port director shall be subject to such verification as the port director deems necessary. Furthermore, because you have not provided any evidence supporting the claim for the GSP, we cannot determine whether the merchandise, is in fact, entitled to duty-free treatment under the GSP.
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