HQ 0556228 - Eligibility of fresh fish from Belize for duty-free treatment under the CBI - United States International Trade Commision Rulings

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HQ 556228

January 21, 1992

CLA-2 CO:R:C:S 556228 SER

CATEGORY: CLASSIFICATION

Mr. James P. Ruff, Jr.
Belize Deep Water Fishing and Processing, LTD. 850 S. Vincent Ave., #57
Azusa, CA 91702

RE: Eligibility of fresh fish from Belize for duty-free treatment under the CBI

Dear Mr. Ruff:

This is in reference to your letter of September 24, 1991, concerning the eligibility of fresh fish for duty-free treatment under the Caribbean Basin Initiative (CBI)(19 USC 2701-2706).

FACTS:

Under an agreement with the government of Belize, U.S. commercial fishing operations will fish the territorial waters of Belize. After the fish are caught, they are cleaned, gutted, packed in ice and then delivered to the port of Belize City. In Belize City, the fish are repacked in U.S.-origin insulated containers and shipped to the U.S.

ISSUE:

Whether the fresh fish is eligible for duty-free treatment under the CBI.

LAW AND ANALYSIS:

Under the CBI, eligible articles the growth, product, or manufacture of designated beneficiary countries (BC's), may enter the U.S. free of duty if such articles are imported directly to the U.S. from the BC, and if the sum of 1) the cost or value of the materials produced in a BC or BC's, plus 2) the direct cost of processing operations performed in a BC or BC's, is not less than 35% of the appraised value of the article at the time it is entered into the U.S. See 19 U.S.C. 2703(a). The cost or value of materials produced in the U.S. may be applied toward the 35% value-content minimum in an amount not to exceed 15% of the imported article's appraised value. See, section 10.195(c), Customs Regulations (19 CFR 10.195(c)).

Belize is a BC, see General Headnote 3(c)(v)(A), Harmonized Tariff Schedule of the United States Annotated (HTSUSA), however, without further information we cannot determine the exact classification, and, therefore, the eligibility under CBI cannot be determined. It should be noted that many classification subheadings for fresh fish are duty-free. The classification subheadings which do not provide for duty-free treatment are generally CBI eligible provisions.

Since you state that the fish will be imported directly to the U.S. from Belize, the merchandise will receive duty-free treatment if it is the growth, product, or manufacture of Belize, and the 35% value-content requirement is met. Clearly, the fresh fish at issue are a "product of" Belize. In addition, any article which is wholly the growth, product, or manufacture of a BC, shall normally be presumed to meet the 35% value-content requirement. 19 CFR 10.195(d). Therefore, the fish classified in CBI eligible tariff provisions will receive CBI duty-free treatment. The U.S.-origin containers also will be duty-free upon entry into the U.S.

HOLDING:

The fresh fish at issue is considered a "product of" Belize and, therefore that fish which is classifiable in a CBI eligible tariff provision will receive duty-free treatment. Fish which is not classifiable in a CBI eligible tariff provision should be examined to determined to see if it is classified in a provision which provides for no duty.

Sincerely,

John Durant, Director

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