Classification under subheading 9802.00.50, HTSUS, of diced, frozen U.S. chicken which is freeze dried in Canada and returned to the U.S.

HQ 084353 June 2, 1989 CLA-2 CO:R:C:G 084353 JGH CATEGORY: Classification TARIFF NO.: 9802.00.50 Mr. Alan Litwin F.W. Myers & Co., Inc. 69 Delaware Avenue Buffalo, N.Y. 14202 RE: Classification under subheading 9802.00.50, HTSUS, of diced, frozen U.S. chicken which is freeze dried in Canada and returned to the U.S. Dear Mr. Litwin: Your letter of February 9, 1989, concerns the classification of diced, frozen chicken of U.S. origin which is sent to Canada for freeze drying and returned to the United States. FACTS: Diced, frozen chicken from the U.S. is sent to Canada, where the water is removed and it is freeze dried. It is then returned to the United States. ISSUE: Whether the freeze-dry processing in Canada qualifies as an alteration, within the meaning of subheading 9802.00.50, HTSUS. LAW AND ANALYSIS: Under this provision a duty is assessed upon the value of alterations that are made on the articles exported for that purpose. Alterations may result in an advancement in value or an improvement in condition. However, the application of this tariff provision is precluded in circumstances where the operations performed abroad destroy the identity of the articles or create new or commercially different articles. Subheading 9802.00.50, HTSUS, treatment also is precluded where the exported articles are incomplete for their intended use and the foreign processing operation is a necessary step in the preparation of manufacture of finished articles. - 2 - In the processing described, the exported diced, frozen chicken does not lose its identity as a finished food. Therefore, whether in the frozen or freeze-dried state, they have essentially the same characteristics. Accordingly, the described Canadian processing is considered an alteration within the scope of subheading 9802.00.50, HTSUS. Imported freeze dried chicken is classifiable under the provision for other meat or poultry in subheading 0210.90.20, HTSUS, dutiable at 5 percent ad valorem. HOLDING: Frozen, diced chicken of U.S. origin which is sent to Canada for freeze drying and then returned to the United States, is classifiable in subheading 9802.00.50, HTSUS, upon compliance with Section 10.8, Customs Regulations ( 19 CFR 10.8). Sincerely, John Durant, Director Commercial Rulings Division hurley library 084353 6cc: Area Director, New York Seaport JGHurley:jaj:5/16/89