[Federal Register Volume 86, Number 152 (Wednesday, August 11, 2021)]
[Notices]
[Pages 44033-44034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17140]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
[Docket No. USCBP-2020-0023]
Receipt of Domestic Interested Party Petition Concerning the
Tariff Classification of Mixtures of Dried Garlic and Dried Onion
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice of receipt of domestic interested party petition;
solicitation of comments.
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SUMMARY: U.S. Customs and Border Protection (CBP) has received a
petition submitted on behalf of a domestic interested party requesting
the reclassification, under the Harmonized Tariff Schedule of the
United States (HTSUS), of certain dried garlic and dried onion
mixtures. CBP currently classifies the subject dried garlic and dried
onion mixtures under subheading 0712.90.85, HTSUS, as mixtures of dried
vegetables. Petitioner contends that the proper classification for the
subject dried garlic and dried onion mixtures is under subheading
0712.90.40, HTSUS, as dried garlic. This document invites comments with
regard to the correctness of the current classification.
DATES: Comments must be received on or before October 12, 2021.
ADDRESSES: You may submit comments, identified by docket number, by the
first method listed below:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments via docket number
USCBP-2020-0023.
Mail: Due to COVID-19-related restrictions, CBP has
temporarily suspended its ability to receive public comments by mail.
Instructions: All submissions received must include the agency name
and docket number for this notice of domestic interested party petition
concerning the tariff classification of dried garlic and dried onion
mixtures. All comments received will be posted without change to http://www.regulations.gov, including any personal information provided.
Docket: For access to the docket to read background documents,
exhibits, or comments received, go to http://www.regulations.gov. Due
to the relevant COVID-19-related restrictions, CBP has temporarily
suspended on-site public inspection of public comments.
FOR FURTHER INFORMATION CONTACT: Tanya Secor, Food, Textiles and
Marking Branch, Regulations and Rulings, Office of Trade, U.S. Customs
and Border Protection, at (202) 325-0062, or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
Background
A petition has been filed under section 516 of the Tariff Act of
1930, as amended (19 U.S.C. 1516), on behalf of Olam West Coast Inc.
(Petitioner or Olam), which is an agri-business and
[[Page 44034]]
supplier of food, ingredients, and raw materials, based in Fresno,
California. Olam manages a wide range of production, processing, and
supply of agricultural products in twelve states, with a majority of
its operations in California. Olam's largest onion and garlic plant is
in Gilroy, California. Olam meets all of the requirements of a domestic
interested party set forth in 19 U.S.C. 1516(a)(2) and section 175.3(a)
in title 19 of the Code of Federal Regulations (19 CFR 175.3(a)).
In New York Ruling Letter (NY) N276018 (November 23, 2016), NY
N276015 (November 23, 2016), NY N267292 (August 27, 2015), NY N259557
(November 28, 2014), and NY N256957 (September 23, 2014), CBP
classified various mixtures of dried (also referred to as dehydrated)
garlic and dried onions as mixtures of dried vegetables in subheading
0712.90.85 of the Harmonized Tariff Schedule of the United States
(HTSUS), which provides for ``Dried vegetables, whole, cut, sliced,
broken or in powder, but not further prepared: Other vegetables;
mixtures of vegetables: Other vegetables; mixtures of vegetables.''
Petitioner contends that the proper classification for the dried garlic
and dried onion mixtures is dried garlic in subheading 0712.90.40,
HTSUS, which provides for ``Dried vegetables, whole, cut, sliced,
broken or in powder, but not further prepared: Other vegetables;
mixtures of vegetables: Garlic.''
Applicable Legal Principles
Classification under the HTSUS is determined in accordance with the
General Rules of Interpretation (GRIs) and, in the absence of special
language or context which otherwise requires, by the Additional U.S.
Rules of Interpretation (ARIs). GRI 1 provides that the classification
of goods shall be determined according to the terms of the headings and
any relative section or chapter notes. In the event that the goods
cannot be classified solely on the basis of GRI 1, and if the headings
and legal notes do not otherwise require, GRIs 2 through 6 may be
applied in order.
The Explanatory Notes (ENs) to the Harmonized Commodity Description
and Coding System represent the official interpretation of the tariff
at the international level. While neither legally binding nor
dispositive, the ENs provide a commentary on the scope of each heading
of the HTSUS and are generally indicative of the proper interpretation
of these headings. See Treasury Decision (T.D.) 89-80, 54 FR 35127,
35128 (August 23, 1989). The EN for heading 07.12, states, in pertinent
part, that the heading also covers dried vegetables, broken or
powdered, such as asparagus, cauliflower, parsley, chervil, onion,
garlic, celery, generally used either as flavouring materials or in the
preparation of soups.
Elaboration of the Petitioner's Views
Petitioner contends that the proper classification for the subject
dried garlic and dried onion mixtures is subheading 0712.90.40, HTSUS,
which provides for ``Dried vegetables, whole, cut, sliced, broken or in
powder, but not further prepared: Other vegetables; mixtures of
vegetables: Garlic.'' Petitioner contends that the subject dried garlic
and dried onion mixtures are not ``mixtures of vegetables'' because
they are ``overwhelmingly composed of dried garlic'' and therefore are
``appropriately classified as dried garlic under'' subheading
0712.90.40, HTSUS, pursuant to GRI 3(b).
Petitioner argues that whether a given product is to be considered
a ``mixture of vegetables'' depends on the specific vegetables included
in the mixture, the relative quantities of such vegetables, and the
impact that the non-predominant vegetables have on the product's
essential character. Petitioner also urges CBP to consider how a given
product is marketed to determine whether industry standards and/or
consumers consider the product in question to be a ``mixture of
vegetables.'' Based on these factors, Petitioner urges CBP to find that
the subject dried garlic and dried onion mixtures are not ``mixtures of
vegetables,'' but rather dried garlic products. It is Petitioner's view
that dried garlic imparts the essential character. In support of its
argument, Petitioner relies on a ruling where dried garlic mixed with
chemical substances is classified as ``dried garlic'' in subheading
0712.90.40, HTSUS. See, e.g., NY N270709 (December 15, 2015) (dried
garlic mixed with calcium stearate and dried garlic mixed with silicon
dioxide).
Analysis Used by CBP in Prior Rulings
Subheading 0712.90.85, HTSUS, provides for ``Dried vegetables,
whole, cut, sliced, broken or in powder, but not further prepared:
Other vegetables; mixtures of vegetables: Other vegetables; mixtures of
vegetables.'' There are no specifications or requirements to qualify as
a mixture in the section notes, chapter notes, or ENs. The EN for
heading 07.12 provides guidance that both garlic and onion are
vegetables. ``Mixture'' is not defined in the HTSUS.
In the rulings at issue, the mixtures of dried vegetables are
comprised of varying combinations of the components dried garlic and
dried onion. Specifically, NY N256957 classifies a mixture of 50
percent dried garlic and 50 percent dried onion; NY N259557 also
classifies a 50-50 percent dried garlic and dried onion mixture; NY
N267292 classifies three dried garlic and dried onion mixtures covering
90 percent dried garlic and 10 percent dried onion, 95 percent dried
garlic and 5 percent dried onion, 99 percent dried garlic and 1 percent
dried onion; NY N276015 also classifies three vegetable mixtures, one
of 64 percent dried garlic and 36 percent dried onion, one of 87
percent dried garlic and 13 percent dried tomatoes, one of 80 percent
dried onion and 20 percent dried celery; NY N276018 classifies two
dried garlic and dried onion mixtures, one of 99 percent dried garlic
and 1 percent dried onion and the other of 1 percent dried garlic and
the 99 percent dried onion. All of these various dried vegetable
mixtures are classified in subheading 0712.90.85, HTSUS, as mixtures of
dried vegetables, notwithstanding the amount of the component dried
garlic. These rulings classified the mixtures of dried garlic and dried
onion under GRIs 1 and 6, because the subject merchandise are all
mixtures of dried vegetables and there are no requisite amounts to
qualify as a mixture.
Comments
Pursuant to section 175.21 of the CBP Regulations (19 CFR 175.21),
before making a determination on this matter, CBP invites written
comments on the petition from interested parties.
The domestic interested party petition concerning the tariff
classification of certain dried garlic and dried onion mixtures, as
well as all comments received in response to this notice, will be
available for public inspection on the docket at www.regulations.gov.
Authority: This notice is published in accordance with 19 U.S.C.
1516 and section 175.21 of the CBP Regulations (19 CFR 175.21).
Troy A. Miller, the Acting Commissioner, having reviewed and
approved this document, is delegating the authority to electronically
sign this document to Robert F. Altneu, who is the Director of the
Regulations and Disclosure Law Division for CBP, for purposes of
publication in the Federal Register.
Dated: August 6, 2021.
Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings,
Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2021-17140 Filed 8-10-21; 8:45 am]
BILLING CODE 9111-14-P