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NY N019217




November 7, 2007

CLA-2-24:OT:RR:NC:SP:231

CATEGORY: CLASSIFICATION

TARIFF NO.: 2401.20.8520; 2401.20.8720; 2401.20.8320

Mr. George M. Keller
Customs Advisory Services, Inc.
1003 Virginia Ave., Suite 200
Atlanta, GA 30354

RE: The tariff classification of tobacco from Thailand.

Dear Mr. Keller:

In your letter dated October 24, 2007, you requested a tariff classification ruling on behalf of Alliance One International, Inc.

The goods at issue are tobaccos that will be imported for use in the manufacture of cigarettes or other products (in the instant case, pipe tobacco). Samples of the three grades in question were previously submitted for our examination. You describe them as follows:

Grade TBB1 is partly or wholly stemmed/stripped burley tobacco which is machine threshed into strips. It is graded as S-B4F (strip tobacco – leaf stalk position, 4th quality, tan color) by the United States Department of Agriculture (“USDA”). This leaf, prior to processing, is described by the USDA as a medium body, mature, firm, wavy, dull finish, weak color intensity, narrow, 16” or over in length, 80 percent uniform, and 20 percent injury tolerance.

Grade BC-P is partly or wholly stemmed/stripped burley tobacco which is hand threshed into strips. It is graded as S-B4F (strip tobacco – leaf stalk position, 4th quality, tan color) by the USDA. This leaf, prior to processing, is described by the USDA as a medium body, mature, firm, wavy, dull finish, weak color intensity, narrow, 16” or over in length, 80 percent uniform, and 20 percent injury tolerance.

Grade BM is partly or wholly stemmed/stripped burley tobacco which is hand threshed into strips. It is graded as S-B4FR (strip tobacco – leaf stalk position, 4th quality, tannish red color) by the USDA. This leaf, prior to processing, is described by the USDA as fleshy to medium body, mature, firm, wavy, dull finish, weak color intensity, narrow, 16” or over in length, 80 percent uniform, and 20 percent injury tolerance.

All of the samples are small, irregularly shaped pieces of tobacco leaf. Based on your presentation, it is understood that the pieces have been reduced (broken down) to this form either by the manual tearing (“hand threshing”) or machine threshing of large pieces of leaf (lamina) previously separated from the midrib (central stem of the leaf). You state that “hand-threshed” and machine-threshed leaf of the same USDA grade are virtually indistinguishable and can be used interchangeably in the manufacturing process. It is also understood that the subject tobaccos, in their imported condition as described above, are not ready for smoking, since they must undergo additional processing (such as further reduction in size, addition of flavorings, etc.) in order to reach that state.

The applicable subheading for all of the above-described tobaccos to be used in cigarettes, if imported in quantities that fall within the limits described in Additional U.S. Note 5 to chapter 24, will be 2401.20.8520, Harmonized Tariff Schedule of the United States (HTSUS), which provides for unmanufactured tobacco (whether or not threshed or similarly processed); tobacco refuse: tobacco, partly or wholly stemmed/stripped: threshed or similarly processed: other: other: other: described in additional U.S. note 5 to chapter 24 and entered pursuant to its provisions: burley. The rate of duty will be 37.5 cents per kilogram. If the quantitative limits of Additional U.S. Note 5 to chapter 24 have been reached, the tobaccos will be classified in subheading 2401.20.8720, HTSUS, and will be dutiable at 350 percent ad valorem.

The applicable subheading for all of the above-described tobaccos to be used in products other than cigarettes will be 2401.20.8320, HTSUS, which provides for unmanufactured tobacco (whether or not threshed or similarly processed); tobacco refuse: tobacco, partly or wholly stemmed/stripped: threshed or similarly processed: other: other: to be used in products other than cigarettes: burley. The rate of duty will be 37.5 cents per kilogram.

Tobacco entered under subheading 2401.20.8320, HTSUS, is subject to the actual-use requirements set forth in sections 10.131 through 10.139 of Title 19, Code of Federal Regulations (19 CFR 10.131-139). In particular,, sections 10.137 and 10.138 describe, respectively, the records of use that are required to be maintained and the proof of use that must be furnished to Customs and Border Protection within 3 years of the date of entry or withdrawal from warehouse for consumption.

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 on World Wide Web at http://www.usitc.gov/tata/hts/.

This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Nathan Rosenstein at 646-733-3030.

Sincerely,

Robert B. Swierupski
Director,

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