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

N018155 October 30, 2007 CLA-2-20:OT:RR:NC:2:228 CATEGORY: Classification TARIFF NO.: 2008.19.9090 Mr. Ben L. Sims Norman G. Jensen, Inc. P.O. Box 3789 Blaine, WA 98231 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of roasted pumpkin seeds from Canada; Article 509 Dear Mr. Sims: In your letter dated September 25, 2007, on behalf of Golden Boy Foods Limited Partnership, Burnaby, BC, Canada you requested a ruling on the status of roasted pumpkin seeds from Canada, under the NAFTA. A description of the manufacturing process and a production flow chart were submitted with your letter. Raw pumpkin seeds will be imported into Canada from the US, China, or another non-NAFTA country. In Canada, the raw pumpkin seeds are cleaned, sorted, roasted, and packed in plastic lined boxes containing 25 lbs, net weight. The applicable tariff provision for the roasted pumpkin seeds will be 2008.19.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved,…nuts, peanuts (ground nuts) and other seeds…other… other...other. The general rate of duty will be 17.9 percent ad valorem. 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/. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if-- (i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein… (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials… General note 12(s)(ii), HTSUS, states: Fruit, nut and vegetable preparations of chapter 20 that have been prepared or preserved merely by freezing, by packing (including canning) in water, brine or natural juices, or by roasting, either dry or in oil (including processing incidental to freezing, packing, or roasting), shall be treated as an originating good only if the fresh good were wholly produced or obtained entirely in the territory of one or more of the NAFTA parties. Based on the facts provided, the roasted pumpkin seeds described above, when made in Canada from United States pumpkin seeds, will qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(i). The product will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. When made in Canada using pumpkin seeds from China or another non-NAFTA country, the roasted pumpkin seeds will not qualify for NAFTA preferential treatment, because they will not meet the requirements of HTSUS General Note 12(b)(ii)(A) and General Note 12(t)/20.4, noting General Note 12(s)(ii). These goods may be subject to regulations or restrictions administered by the U.S. Department of Agriculture, Animal and Plant Health Division (APHIS). You may contact this agency regarding possible applicable regulations at the following location: U.S. Department of Agriculture (APHIS) Plant Protection and Quarantine Permit Unit 4700 River Road, Unit 136 Riverdale, MD 20737-1236 Telephone number: 877-770-5990 This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at telephone number (301) 575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. 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 646-733-3029. 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 and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division