The tariff classification and status under the United States-Colombia Trade Promotion Agreement of prepared peanuts from Colombia

N253442 June 12, 2014 CLA-2-20:OT:RR:E:NC:N2:231 CATEGORY: Classification TARIFF NO.: 2008.11.4500; 2008.11.6000 Mr. Gustavo A. Llano Dominguez Manitoba Ltda Cra 8 No. 34-56 Cali Valle del Cauca 579986 Colombia RE: The tariff classification and status under the United States-Colombia Trade Promotion Agreement of prepared peanuts from Colombia Dear Mr. Llano Dominguez: In your letter dated May 14, 2014, you requested a ruling on the status of prepared peanuts from Colombia under the U.S.-Colombia Trade Promotion Agreement. In your letter, you state that your company will import U.S.-origin “blanched jumbo peanuts raw” from Birdsong Peanut Company located in the United States into Colombia, where they will be processed and combined with other ingredients (i.e. covered with baked dough). You did not indicate the origin of the other ingredients. The finished, “Japanese Style” coated peanuts will then be imported into the United States. As you noted in your letter, this office previously issued New York Ruling N239126, dated March 4, 2013, in which we provided a merchandise description, tariff classifications and general rates of duty applicable to the finished peanuts when imported into the U.S. The following three paragraphs are excerpted from that ruling: The goods in question are “Japanese Style Peanuts” put up for retail sale in a sealed, 40-gram metallized-plastic pouch. These are individual peanut kernels, each with a thin, crunchy, baked-dough coating having a salty flavor. Examination of samples randomly selected from those you submitted discloses that the peanut kernel itself generally comprises about 80% of each coated piece’s overall diameter (cross-section). The stated ingredients of the product are peanuts, fortified wheat flour, sugar, salt, corn syrup, hydrolyzed vegetable protein, monosodium glutamate and BHA (antioxidant).The applicable subheading for the “Japanese Style Peanuts,” if imported while the tariff-rate quota remains open, will be 2008.11.4500, Harmonized Tariff Schedule of the United States (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 general rate of duty will be 6.6 cents per kilogram.The applicable subheading for the “Japanese Style Peanuts,” if imported after the tariff-rate quota has closed, 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 general rate of duty will be 131.8% ad valorem. General Note 34(b), HTSUS, sets forth the criteria for determining whether a good is originating under the U.S.-Colombia TPA, as follows: For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of Colombia or of the United States under the terms of this note if– (i) the good is wholly obtained or produced entirely in the territory of Colombia or of the United States, or both; (ii) the good is produced entirely in the territory of Colombia or of the United States, or both, and-- (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or (iii) the good is produced entirely in the territory of Colombia or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above. For the purposes of subdivision (b)(ii)A), the term “used” means utilized or consumed in the production of the goods. Based on the facts provided, the finished prepared peanuts qualify for preferential treatment under the U.S.-Colombia TPA because they will meet the requirements of HTSUS General Note 34(b)(i) (if all ingredients/“materials used” are of U.S. and/or Colombian origin), or General Note 34(b)(ii) (if any of the non-peanut ingredients/“materials used” are not of U.S. or Colombian origin). Therefore, when the quota is open and the peanuts are entered under subheading 2008.11.4500, HTSUS, they will be entitled to a preferential free rate of duty under the U.S.-Colombia TPA upon compliance with all applicable laws, regulations and agreements. When the quota is closed and the peanuts are entered under subheading 2008.11.6000, they will be entitled to a preferential 105.4 % rate of duty under the U.S.-Colombia TPA upon compliance with all applicable laws, regulations and agreements. 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/. 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. 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 the email address Nathan.Rosenstein@cbp.dhs.gov. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division