CLA-2-02:RR:NC:2:231 H86586
Ms. Janette Ashton
Centennial Foods
4043 Brandon Street S.E.
Calgary, Alberta T2G 4A7
Canada
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of ground beef tiles manufactured in Canada from beef originating in Australia; Article 509
Dear Ms. Ashton:
In your letter, dated December 7, 2001, you requested a ruling on the status of ground beef tiles manufactured in Canada from beef originating in Australia under the NAFTA.
The merchandise is comprised of organic, lean ground beef tiles that are manufactured in Canada from organic beef of Australian origin. The raw material is Australian, organic, frozen beef trim that is shipped to Canada in 60 pound boxes. The frozen, organic beef is tempered and then course ground using a 4 blade knife on a one inch grinding plate. It is then mixed for a specific period of time to achieve a homogenous consistency. It is then chilled to 27o Fahrenheit with CO 2 to aid in the forming process. It is then further ground using a 4 blade knife on a 1/8 inch grinding plate and a bone removal system. The organic ground beef is then passed through a Formax® forming machine that uses a Tender-Form® fill system, a stacked breather and a tile shaped forming plate. The resulting 8 ounce product is a tile that measures 3.307 inches by 5.549 inches by 0.748 inch. The specialized fill and breather system allows air to be removed from the product. The system forms the meat in a columnar form that creates a chimney effect when the product is defrosted; the process also reduces cooking loss and cooking time. Then the product is passed through a quick freeze nitrogen tunnel that permits the product to retain its fresh, red color and allows the product to be packed without the occurrence of deformations. The product is vacuum packed in a 3 millimeter bag that reduces the oxygen level and provides protection for a longer shelf life. The bag also contains a light barrier that protects the product against color deterioration. The vacuum packed product is packed, 2 tiles per retail box and 12 retail boxes per master case.
The applicable subheading for ground beef tiles, if entered under quota, will be 0202.30.3000, Harmonized Tariff Schedule of the United States (HTS), which provides for meat of bovine animals, frozen, boneless, described in additional U.S. note 3 chapter 2 and entered pursuant to its provisions, processed, other. The general rate of duty will be 10 percent ad valorem. In 2002 the rate of duty will remain the same.
The applicable subheading for ground beef tiles, if entered outside the quota, will be 0202.30.8000, HTS, which provides for meat of bovine animals, frozen, boneless, other. The general rate of duty will be 26.4 percent ad valorem. In 2002 the rate of duty will remain the same. In addition, products classified in subheading 0202.30.8000, HTS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.02.01 – 9904.02.37, subchapter IV, chapter 99. However, U.S. Note 1 to subchapter IV in chapter 99 states, “Goods of Canada or Mexico imported into the United States shall not be subject to any of the provisions, duties or limitations of this subchapter.” Accordingly, if a product of Canada, the safeguard duties will not apply.
Ground beef tiles that are manufactured in Canada from beef originating in Australia do not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials (the beef) used in the production of the goods will not undergo the change in tariff classification required by HTSUSA General Notes 12(b)(ii)(A) and 12(t)/2.
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 Thomas Brady at (646) 733-3030.
Sincerely,
Robert B. Swierupski
Director
National Commodity
Specialist Division