CLA-2-20:OT:RR:NC:N5:228
PAULO FEOLI CARRANZA
Chiquita Tropical ingredients SA
Intersección Ruta 32, Calle 6 70202 70202 Costa Rica
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of banana purees from Costa Rica.
Dear Mr. Feoli Carranza:
In your letters dated August 19, 2024, and September 19, 2024, you requested a ruling on the tariff classification and status under the DR-CAFTA of five varieties of banana purees on behalf of your client, Citrus Products Inc.
An ingredients breakdown, a description of the manufacturing process, manufacturing flow charts, product specification sheets and pictures of the products accompanied your inquiry.
The subject merchandise is described as five varieties of banana puree made from fresh Cavendish bananas which are ripened to full flavor, peeled, mashed, thermally processed, aseptically cooled and packaged to assure commercial sterility. The color, texture, and flavor are said to be uniform and there is no sugar added to the “purees.” The first product, “Chiquita Deseeded Banana Puree,” and second product, “Chiquita Banana Puree with seeds,” is said to contain bananas and ascorbic acid. The third product, “Chiquita Deseeded Acidified Banana Puree,” and fourth product, “Chiquita Acidified Banana Puree with seeds,” is said to contain bananas, citric acid and ascorbic acid. The fifth product, “Chiquita Deseeded Acidified Banana Puree,” is said to contain bananas and lemon juice concentrate. The bananas are said to be sourced from Costa Rica and Panama, the ascorbic acid and citric acid are said to be sourced from China, and the lemon juice is said to be sourced from Brazil.
The “purees” are said to be prepared in Costa Rica by the following manufacturing processes: First, the ripened bananas are washed with chlorinated water and then they are pushed into the peeling area. The fruit is then mashed, screened and transported by pipeline to the enzymatic inactivation stage in which the product is subjected to heating by heat exchangers. Following this phase, the “purees” continue via pipeline to the deseeding step, where per the screen used, the “puree” is fully deseeded as required. Ascorbic acid is added as an antioxidant when the formula requires.
Following these steps, the “puree” is driven by a transfer pump and is subjected to vacuum, enabling the air extraction. After that, the “puree” passes immediately to a holding tank which allows enough product to accumulate to maintain a constant flow rate. Next, the “puree” passes through a homogenizer, thermal processing, a final filter and the metal detector. Thermal processing is said to occur at temperatures between 241 and 271 degrees Fahrenheit for approximately 3 and a half seconds. The products are aseptically filled into a sterile bag, which is placed inside of a cardboard box or a metallic drum and stored and transported in containers at room temperature. The brix value for each product is said to be between 20 and 25.
The applicable tariff provision for the products, “Chiquita Deseeded Banana Puree,” “Chiquita Banana Puree with seeds,” “Chiquita Deseeded Acidified Banana Puree,” “Chiquita Acidified Banana Puree with seeds,” and “Chiquita Deseeded Acidified Banana Puree,” will be 2008.99.1300, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fruits, nuts and other edible parts of plants, otherwise prepared or preserved…other…other…bananas…pulp. The general rate of duty will be 3.4 percent ad valorem.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states:
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if-
(i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and-
(A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
Here, the products contain bananas sourced from Panama (or Costa Rica), ascorbic acid and citric acid from China, and lemon juice from Brazil, and as such are non-originating ingredients. Since the products contain non-originating ingredients, they are not considered a good wholly obtained or produced entirely in a DR-CAFTA country under GN 29(b)(i). Thus, we must determine whether the products qualify under GN 29(b)(ii). As previously noted, the products are classified under subheading 2008.99.1300, HTSUS. The applicable rule of origin for goods classified under subheading 2008.99.1300, HTSUS, is in GN 29(n)/20.22, HTSUS, which provides:
“A change to subheading 2008.99 from any other chapter, except that a good that has been prepared by packing (including canning) in water, brine or natural juices (including processing incidental to packing) shall be treated as originating only if the fresh good was wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement.”
As mentioned above, the products, depending on the variety, contain the following non-originating ingredients that need to undergo the tariff shift: ascorbic acid and citric acid (China), lemon juice (Brazil), and bananas, only when sourced from Panama. In the case of the first four products, “Chiquita Deseeded Banana Puree,” “Chiquita Banana Puree with seeds,” “Chiquita Deseeded Acidified Banana Puree,” and “Chiquita Acidified Banana Puree with seeds,” since the non-originating ingredients in the products are all classified in a Chapter other than Chapter 20, HTSUS, the tariff shift rule is met.
Additionally, we note that the second part of the tariff shift rule does not apply to these products as they would not be ‘prepared by packing in water, brine or natural juices.” Therefore, the first four products, “Chiquita Deseeded Banana Puree,” “Chiquita Banana Puree with seeds,” “Chiquita Deseeded Acidified Banana Puree,” and “Chiquita Acidified Banana Puree with seeds,” are eligible for preferential tariff treatment under the DR-CAFTA because they will meet the requirements of HTSUS, General Note 29(b)(ii) and GN 29(n)/20.22. The goods will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
The fifth product, “Chiquita Deseeded Acidified Banana Puree,” is said to contain bananas and lemon juice concentrate. Lemon juice concentrate is classified in heading 2009, HTSUS. Accordingly, the product would not satisfy the requirement of GN 29(n)/20.22, HTSUS.
GN 29(e)(i), HTSUS, provides, in pertinent part, that a good that does not undergo a change in tariff classification pursuant to subdivision (n) of this note is an originating good if— the value of all non-originating materials that— are used in the production of the good, and do not undergo the applicable change in tariff classification set out in subdivision (n) of this note, does not exceed 10 percent of the adjusted value of the good. (B) the value of such non-originating materials is included in the value of non-originating materials for any applicable regional value requirement for the good.
Based on the additional information provided, the bananas account for 99.80 percent of the value of the product while the lemon juice concentrate represents 0.20 percent of the value. Therefore, the fifth product, “Chiquita Deseeded Acidified Banana Puree,” is eligible for preferential tariff treatment under the DR-CAFTA because it will satisfy the requirements of HTSUS, GN 29(e)(i).
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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Timothy Petrulonis at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division