CLA-2-04:OT:RR:NC:N5:231
David Morrell, Esq.
Jones Day
51 Louisiana Ave., N.W.
Washington, DC 20001
RE: The tariff classification, country of origin, and eligibility under the United States-Mexico-Canada
Agreement (USMCA) for Shaved or Shredded Parmesan Cheese
Dear Mr. Morrell:
In your letter dated March 27, 2025, you requested a ruling on the tariff classification, country of origin, and
eligibility under the USMCA of Shaved or Shredded Parmesan Cheese on behalf of your client, Saputo
Cheese USA Inc. (Milwaukee, WI). An ingredients breakdown, production description, product
specifications, and representative images of the product container accompanied your inquiry.
The subject merchandise is described as Shaved or Shredded Parmesan Cheese. The ingredients are said to be
pasteurized part skim cow’s milk, cheese cultures, salt, enzymes, powdered cellulose to prevent caking, and
natamycin to protect flavor. The bulk cheese will be produced in a facility in Wisconsin before being
transported in 20-pound cheese wheels to a facility in Canada where the cheese will be shredded or shaved
and packaged into Canadian-origin plastic 5-ounce retail sized cups. A U.S.-origin cellulose-based anticaking
agent will be applied during the packaging process before importation to the United States for retail sale.
Classification:
The applicable subheading for the Shaved or Shredded Parmesan Cheese will be subheading 0406.90.4200,
Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Cheese and curd: other
cheese: Romano made from cow’s milk, Reggiano, Parmesan, Provolone and Provoletti cheeses: Other: made
from cow’s milk: Other.” The rate of duty is ordinarily $2.146 per kilogram.
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.
Country of Origin:
Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” as the country of
manufacture, production, or growth of any article of foreign origin entering the United States. Further work
or material added to an article in another country must effect a substantial transformation in order to render
such other country the “country of origin” within the meaning of the marking laws and regulations.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other
USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in
§§102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to
goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the
country of origin of a good for marking purposes, with the exception of textile goods which are subject to the
provisions of 19 C.F.R. §102.21. See 19 C.F.R. §102.11.
Applied in sequential order, 19 CFR Part 102.11(a) provides that the country of origin of a good is the
country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set
out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable
requirements of these rules are satisfied.
In this case, the Shaved or Shredded Parmesan Cheese is “produced exclusively from domestic materials.”
Therefore, paragraph (a)(2) may be applied to determine the country of origin of the cheese, which in this
case is the United States.
USMCA:
The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30,
2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020 of the
USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (“GN”)
11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is
an originating good for purposes of the USMCA. GN 11(b) states the following:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential
tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the
tariff schedule as a “good originating in the territory of a USMCA country” only if –
(i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA
countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries,
exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries using
non-originating materials, if the good satisfies all applicable requirements set forth in this note
(including the provisions of subdivision (o));
Since all of the ingredients in the cheese are USMCA originating, the product is a good produced entirely in
the territory of one or more USMCA countries, exclusively from originating materials under GN 11(b)(ii).
Therefore, the product, Shaved or Shredded Parmesan Cheese, is eligible for preferential tariff treatment
under the USMCA.
The Shaved or Shredded Parmesan Cheese product from Canada is eligible for duty-free treatment under
subheading 9823.04.01, HTSUS as follows: ?Goods of the United States provided for in note 4(a) to this
subchapter.? Note 4(a) provides that to qualify for duty-free treatment under subheading 9823.04.01,
products classifiable under 0406.90.4200 must be, ?originating goods of the USMCA countries?under the
terms of General Note 11 to the tariff schedule?? As a result, and as described below, to qualify for
duty-free treatment under subheading 9823.04.01 the finished product must qualify as, (i) an ?originating
good of the USMCA countries? within the meaning of General Note 11, and (ii) a ?good of the United
States? within the meaning of subheading 9823.04.01, HTSUS and the Customs regulations. In this instance,
the finished Shaved or Shredded Parmesan Cheese product meets both requirements and is therefore entitled
to duty-free United States entry from Canada.
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.
The question of whether the merchandise at issue may be marked with a phrase such as ?Product of U.S.A.?
is under the jurisdiction of the U.S. Federal Trade Commission, Bureau of Consumer Protection, Division of
Enforcement, which may be contacted for advice at 600 Pennsylvania Avenue N.W., Washington, D.C.
20580, or through the FTC?s website at http://www.ftc.gov.
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 the Web site
www.fda.gov/oc/bioterrorism/bioact.html.
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 Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division