The tariff classification and status under the North American Free Trade Agreement (NAFTA), of mushroom powder from Canada; Article 509

NY D81372 August 25, 1998 CLA-2-7:RR:NC:2:228 D81372 CATEGORY: Classification TARIFF NO.: 0712.30.1000 Mr. Jeff Chilton North American Reishi Box 1780 Gibsons, B.C. V0N 1V0 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of mushroom powder from Canada; Article 509 Dear Mr. Chilton: In your letter dated August 13, 1998 you requested a ruling on the status of mushroom powder from Canada under the NAFTA. Two samples, submitted with your inquiry, were examined and disposed of. Your firm plans to import dried, whole maitake mushrooms (Grifola frondosa), products of China. In Canada, you will sterilize these dried mushrooms, re-dry them, and grind them into a fine powder. The powder will be imported into the United States in bulk form, sold to companies who fill the powder into capsules or incorporate it into tablets, which will then be sold as food supplements in health food stores. The applicable tariff provision for the mushroom powder will be 0712.30.1000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared...mushrooms...air dried or sun dried. The general rate of duty will be 1.8 cents per kilogram plus 2.5 percent ad valorem. The merchandise does not qualify for preferential treatment under the NAFTA because the non-originating material, the mushrooms, used in the production of the powder will not undergo the change in tariff classification required by General Note 12(t)/7, HTSUSA, and does not meet the requirements of General Note 12(f), HTSUSA. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). 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 Stanley Hopard at 212-466-5760. Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division