The tariff classification of a snack mix consisting of peanuts (of U.S. origin) and rice crackers (of Japanese origin) to be imported from Japan.

N022978 February 15, 2008 CLA-2-20:OT:RR:E:NC:SP:231 CATEGORY: Classification TARIFF NO.: 2008.11.4500; 2008.11.6000 Mr. Taco Yasumaru Kameida Seika Co., Ltd. 3-1-1 Kameda Kogyodanchi Konan-ward Niigata 950-0198 Japan RE: The tariff classification of a snack mix consisting of peanuts (of U.S. origin) and rice crackers (of Japanese origin) to be imported from Japan. Dear Mr. Yasumaru: In your letter dated January 30, 2008, you requested a tariff classification ruling. You have outlined a scenario in which peanuts, grown, blanched and roasted in the United States, will be sent to Japan, where they will be mixed with Japanese-origin baked rice crackers and packaged for retail sale. The resulting product will be a 6.3-ounce (180 g) packaged snack mix consisting of 40% (72 g) peanuts and 60% (108 g) rice crackers. Other than being mixed with the crackers and packaged together with them, the U.S. peanuts will not have undergone any processing in Japan. Your inquiry concerns the proper tariff classification for the finished snack mix, which will be imported into the United States. You also ask whether, in the event that duty and/or quota apply, any remission or relief can be obtained by virtue of the peanuts’ U.S. origin. In accordance with previous rulings on similar products (e.g., NY F82479 dated Feb. 10, 2000, and HQ 966111 dated July 13, 2006), we find that the finished, packaged snack is, for tariff purposes, a mixture whose essential character cannot clearly be attributed to either of its individual components. We thus turn to General Rule of Interpretation (GRI) 3(c), Harmonized Tariff Schedule of the United States (HTSUS), which provides that in such situations the merchandise will be classified under the heading which occurs last in numerical order among those that equally merit consideration. In this case, the heading for the roasted peanuts (2008) occurs after the heading for the rice crackers (1905). Accordingly, the applicable subheading for the snack mix containing roasted peanuts and baked rice crackers, if entered under quota, will be 2008.11.4500, HTSUS, 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: described in additional U.S. Note 2 to chapter 12 and entered pursuant to its provisions. The rate of duty will be 6.6 cents per kilogram. The applicable subheading for the snack mix containing roasted peanuts and baked rice crackers, if entered outside the quota, will be 2008.11.6000, HTSUS, 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 rate of duty will be 131.8% 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/. With regard to your question about possible quota/duty relief, we note that although U.S.-origin peanuts returned to the United States and entered under subheading 9801.00.10, HTSUS, are not subject to quota and are free of duty, that tariff provision does not apply in this instance. Subheading 9801.00.10, HTSUS, provides for the free entry of U.S. products that are exported and returned without having been advanced in value or improved in condition by any means while abroad. U.S. Customs and Border Protection has previously ruled that the combining (blending) of pre-measured amounts of different ingredients to form a mix creates a new and different commercial article, i.e., a new marketable product. Such blending operations have thus been held to advance the value and improve the condition of the ingredients being combined, thus precluding eligibility for classification in subheading 9801.00.10, HTSUS. (See, e.g., HQ 555519 dated March 12, 1990.) Therefore, the current peanut/cracker mix is subject to the same quota and duty requirements as a wholly-foreign product. 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 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. These goods may be subject to regulations or restrictions administered by the U.S. Department of Agriculture, Animal and Plant Health Division (APHIS), and Agricultural Marketing Service (AMS). You may contact these agencies regarding possible applicable regulations at the following locations: 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 Marketing Order Administration Branch Fruit and Vegetable Programs USDA AMS 4700 River Road, Unit 155, Suite 5D03 Riverdale Park, MD 20737-1227 Telephone: (301) 734-5246 FAX: (301) 734-5275 This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 Nathan Rosenstein at 646-733-3030. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division