Concentrated Apple Juice

HQ 952453 December 17, 1992 CLA-2 CO:R:C:F 952453 ALS CATEGORY: Classification TARIFF NO.: 2009.70.0020 Mr. Herbert E. Harris II Harris and Ellsworth 2600 Virginia Ave., NW Suite 1113 Washington, DC 20037-1905 RE: Concentrated Apple Juice Dear Mr. Harris: This is in reference to your inquiry regarding concentrated apple juice of East European origin which is processed in a member country of the European Economic Community (EEC) and subsequently shipped to the United States. You ask us to confirm that the processed apple juice concentrate remains a product of the country(ies) where the apple juice concentrate originated. FACTS: The product is concentrated apple juice which is produced in East European countries, e.g. Poland and Hungary, from apples grown in those countries, it is sent to an EEC country where it is reconstituted and mixed. No products of EEC origin are added to the apple juice as part of the mixing process. Subsequent thereto, the product is dehydrated and packaged for export to the United States. ISSUE: What is the classification of the concentrated apple juice and does the processing in an EEC country without the addition of any EEC product constitute a substantial transformation altering the country of origin of the product? - 2 - LAW AND ANALYSIS: Classification of merchandise under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) is governed by the General Rules of Interpretation (GRI's) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes. If GRI 1 fails to classify the goods and if the heading and legal notes do not otherwise require, the remaining GRI's are applied taken in order. The product under consideration is concentrated apple juice which is not frozen. In considering the classification of the product, we noted that the HTSUSA specifically provides for concentrated apple juice in subheading 2009.70.00, HTSUSA. A breakout is provided thereunder for frozen concentrate and a second breakout is provided for other concentrate. Since the product is not frozen, it is clear that it should be classified under the latter breakout. A question remains as to the country of origin of the product. In considering this matter we noted that the apple juice originates in East European countries such as Poland and Hungary, i.e., it is produced from apples grown in those countries which are processed and the juice initially concentrated in those countries. These concentrated apple juices are then shipped to an European Economic Community (EEC) country where they are reconstituted, mixed and then dehydrated in evaporators, packaged and exported to the U.S. The processing in the EEC consists of adding and removing water and mixing the concentrated juices originating in various East European countries. Save for water which is added then removed from the concentrate, no products from the EEC countries are added to the mix. Since the processing does not alter the nature of the product and nothing is added to the mix in the EEC, we have concluded that the EEC processing does not result in a substantial transformation of the product. Accordingly, the imported concentrated apple juice remains a product of the East European country or countries from which the concentrated apple juice(s) originated. HOLDING: Concentrated apple juice which originates in eastern European countries, is shipped to an EEC country where it is - 3 - rehydrated, mixed and then reconcentrated prior to packaging and shipment to the U.S. is considered a product of the country or countries where the juices originated, is classifiable in subheading 2009.70.0020, HTSUSA, and is subject to a free rate of duty. Sincerely, John Durant, Director Commercial Rulings Division