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

NY I86976 October 11, 2002 CLA-2-20:RR:NC:2:231 I86976 CATEGORY: Classification TARIFF NO.: 2008.11.6000 Mr. Peter Mento Expeditors Tradewin, LLC 1015 Third Avenue, 12th Floor Seattle, WA 98104 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of flavored and thinly coated, roasted peanuts from Mexico; Article 509 Dear Mr. Mento: In your letter, dated October 2, 2002, on behalf of your client, Reckitt Benckiser, Inc., Wayne, NJ, you requested a ruling on the status of flavored and thinly coated, roasted peanuts from Mexico under the NAFTA. The merchandise is described thus: “Freakin’ Nuts” brand “Blazin’ BBQ.” An examination of the sample indicates that the merchandise is comprised of flavored and thinly coated, roasted, individual peanuts in a retail plastic bag. The ingredients are peanuts, wheat flour, modified corn starch, dehydrated potato, palm oil, barbecue seasoning (comprised of maltodextrin, salt, corn starch, monosodium glutamate, chili powder, citric acid, natural beef and smoke flavors, spices, tomato powder, yellow 5, and yellow 6), sugar, baking powder (sodium bicarbonate, aluminum sodium sulfate, corn starch, sodium carbonate, calcium sulfate, and monocalcium phosphate), niacin, iron, zinc, thiamin, riboflavin, and folic acid. The net weight is 50 grams. “Freakin’ Nuts” brand “Cha Cha Chili.” An examination of the sample indicates that the merchandise is comprised of flavored and thinly coated, roasted, individual peanuts. The ingredients are peanuts, wheat flour, modified corn starch, dehydrated potato, palm oil, chipotle seasoning (iodized salt, chili pepper blend, wheat flour, citric acid, vinegar powder, spices, monosodium glutamate, onion powder, soybean oil, garlic powder, artificial flavoring, red 40 lake, disodium guanylate, and disodium inosinate), sugar, baking powder (sodium bicarbonate, aluminum sodium sulfate, corn starch, sodium carbonate, calcium sulfate, and monocalcium phosphate), niacin, iron, zinc, thiamin, riboflavin, and folic acid. The net weight is 50 grams. “Freakin’ Nuts” brand “Salsa Verde.” An examination of the sample indicates that the merchandise is comprised of flavored and thinly coated, roasted, individual peanuts. The ingredients are peanuts, wheat flour, modified corn starch, dehydrated potato, palm oil, jalapeno seasoning [salt, whey (from milk), monosodium glutamate, sugar, natural and artificial flavoring, onion powder, citric acid, sodium diacetate, and natural chili extract], sugar, baking powder (sodium bicarbonate, aluminum sodium sulfate, corn starch, sodium carbonate, calcium sulfate, and monocalcium phosphate), niacin, iron, zinc, thiamin, riboflavin, and folic acid. The net weight is 50 grams. In your correspondence you indicate that all ingredients are grown and sourced in Mexico. The applicable subheading for flavored and thinly coated, roasted peanuts (items 1, 2, and 3) 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 131.8 percent ad valorem. However, prepared peanuts which are of Mexican origin are subject to duty rates listed in subheadings 9906.20.03-9909.20.05, HTS. Further, while products classified in subheading 2008.11.6000, HTS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.12.01 – 9904.12.19, HTS, subchapter IV, chapter 99, goods classified therein which are the product of Mexico are exempted from such duties under the provisions of U.S. Note 1, subchapter IV in chapter 99. Accordingly, if a product of Mexico, the safeguard duties will not apply. Goods classifiable in subheading 2008.11.6000, HTS, 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 preferential duty treatment under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Such goods.11.6000, HTS, when imported in quantities that fall within the quantitative limits described in U.S. Note 16 to subchapter VI of chapter 99, HTS, will be free of duty pursuant to subheading 9906.20.03, HTS. The quantitative limits established under U.S. note 16 for calendar year 2002 are 4,278,000 kilograms. If the quantitative limits of U.S. Note 16 to subchapter VI of chapter 99 have been reached, and if the product is valued not over 65.2 cents per kilogram, it will be dutiable at the rate of 45.5 cents per kilogram, in subheading 9906.20.04, HTS. If valued over 65.2 cents per kilogram, the rate of duty will be 69.8 percent ad valorem, pursuant to subheading 9906.20.05, HTS. Additional regulations or requirements, administered by the U.S. Food and Drug Administration may apply to these products. You may contact the FDA at: Food and Drug Administration Division of Import Operations and Policy 5600 Fishers Lane Rockville, MD 20857 This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR 181). This ruling 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 Thomas Brady at (646) 733-3030. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division