United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1998 NY Rulings > NY D82111 - NY D82168 > NY D82116

Previous Ruling Next Ruling
NY D82116




September 23, 1998

CLA-2-20:RR:NC:2:231 D82116

CATEGORY: CLASSIFICATION

TARIFF NO.: 2008.11.6000

Mr. Ray Reynolds
Lee Hardeman Customs Broker, Inc.
P.O. Box 45545
Atlanta, GA 30320-0545

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of thinly coated peanuts from Mexico; Article 509

Dear Mr. Reynolds:

In your letter, dated August 24, 1998, you requested a ruling on the status of thinly coated peanuts from Mexico under the NAFTA, on behalf of your client, John P. Buttress, DBA U.S. Marketing Services, Savannah, GA.

An examination of the samples indicates that the merchandise is comprised of thinly coated individual peanuts.

Peanuts of Mexican, Argentine, or U.S. origin will be exported to Mexico to be further manufactured into peanut snacks. In your correspondence you indicate that there will be no mixture of origins relative to the raw peanuts incorporated in these products. The merchandise is described thus:

1. "Chocolate Cookie Peanuts" will be sold under the "Snack Hoppers" trademark. The ingredients are peanuts, vegetable starch, peanut oil, sugar, cocoa, baking powder, flavoring, egg white, salt, and citric acid. The net weight is 1 3/4 ounce (49 grams).

2. "Cheese Cracker Peanuts" will be sold under the "Snack Hoppers" trademark. The ingredients are peanuts, vegetable starch, peanut oil, egg white, sugar, salt, cheese seasoning, sodium bicarbonate, citric acid, and "Yellow 6 Lake." The net weight is 1 3/4 ounce (49 grams).

3. "Nacho Cracker Peanuts" will be sold under the "Snack Hoppers" trademark. The ingredients are peanuts, vegetable starch, peanut oil, egg white, sugar, salt, "Nacho" seasoning, sodium bicarbonate, citric acid, and "Yellow 6." The net weight is 1 3/4 ounce (49 grams).

The applicable subheading for "Chocolate Cookie Peanuts," "Cheese Cracker Peanuts," and "Nacho Cracker Peanuts" will be will be 2008.11.6000, Harmonized Tariff Schedule of the United States (HTS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together, peanuts (ground-nuts), other, other. The general rate of duty will be 139.5 percent ad valorem.

If the raw peanuts are of Mexican origin, the thinly coated peanuts, 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. Upon compliance with all applicable laws, regulations, and agreements under NAFTA, articles from Mexico classifiable in subheading 2008.11.6000, HTS, are subject to the quota quantity restrictions listed in 9906.20.03, HTS, which limit the amount of peanuts to the quantitative limits specified in U.S. Note 16 to Subchapter VI of Chapter 99. The rate of duty will be free.

Alternately, articles valued not over 65.2 cents per kilogram are classifiable in subheading 9906.20.04, HTS. The rate of duty will be 70.3 cents per kilogram.

Otherwise, articles valued over 65.2 cents per kilogram are classifiable in subheading 9906.20.05, HTS. The rate of duty will be 107.7 percent ad valorem.

The applicable subheading for "Chocolate Cookie Peanuts," "Cheese Cracker Peanuts," and "Nacho Cracker Peanuts" that are not NAFTA eligible (produced from peanuts of Argentine or U.S. origin) will be 2008.11.6000, HTS. The rate of duty will be 139.5 percent ad valorem. In addition, products classified in subheading 2008.11.6000, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.12.01 - 9904.12.19, HTS.

General Note 12(s)(i)(B), HTSUS, articulates the following regarding the North American Free Trade Agreement:

(s) Exceptions to Change in Tariff Classification Rules (i) Agricultural and horticultural goods grown in the territory of a NAFTA party shall be treated as originating in the territory of that party even if grown from seed, bulbs, rootstock, cuttings, skips or other live parts of plants imported from a non-party to the NAFTA, except that goods which are exported from the territory of Mexico and are provided for in
(B) subheading 2008.11, if any material provided for in heading 1202 used in the production of such goods was not harvested in the territory of Mexico shall be treated as nonoriginating goods.

Because the raw material (American or Argentine peanuts), provided for in heading 1202 and used in the production process, was not harvested in the territory of Mexico, the finished products are considered nonoriginating goods. Accordingly, thinly coated peanut snacks sourced from American or Argentine raw peanuts are not NAFTA eligible.

Additional requirements may be imposed on these products by the Food and Drug Administration. You may contact the FDA at:

Food and Drug Administration
Division of Regulatory Guidance
200 C Street, S.W.
Washington, DC 200204

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,

Robert B. Swierupski
Director

Previous Ruling Next Ruling

See also: