CLA-2-23:RR:NC:FC:231 A88083
Mr. Adam Benado
Comet Rice Ingredients Company
P.O. Box 1055
Freeport, TX 77541
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of oilcake from Mexico; Article 509
Dear Mr. Benado:
In your letter dated September 25, 1996, you have requested a ruling on the status of oilcake from Mexico under the NAFTA.
The product, "Peanut Meal," is comprised of pressed oilcake. During the manufacturing process, peanuts are cleaned, deshelled, dehulled, and heated, either in a roasting oven or by roasting in peanut oil. Afterwards the roasted peanuts are pressed and 75-90 percent of the oil is removed. This process results in peanut oil and press-cake. The press-cake is subjected to a clump-breaking and pelleting operation in preparation for extraction. Afterwards the pelleted press-cake is subjected to solvent extraction to remove oil. The pelleted press-cake is submitted to a mixture of propane, butane and isobutane, and to elevated pressure, to remove any remaining oil. The product from this extraction is called, "Peanut Meal."
The Peanut Meal will contain 1.5-3.0 percent oil. The yield will be 54 percent or less of the raw peanut weight. It will be in the form of pellets (1/8 to 1/4 inch) or powder. The color will be pale yellow to deep red, depending on the variety feedstock and heat treatment.
The factory is located in Mexico. The peanuts to be processed will be grown in Mexico.
The applicable tariff provision for the "Peanut Meal" will be 2305.00.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for oilcake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of peanut (ground-nut) oil. The general rate of duty will be 0.57 cents per kilogram.
The Peanut Meal, being wholly obtained or produced entirely in the territory of Mexico, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR 181).
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
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 Ralph Conte at (212) 466-5759.
Sincerely,
Roger J. Silvestri
Director
National Commodity
Specialist Division