WEBVTT

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>> CALENTHIA BANKS: Good afternoon,
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ladies and gentlemen. My name is Lynn
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banks with Office of Trade relations.
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Today's webinar is the world of pasta,
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history and tariff classification. And
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it is part of the education commodity
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specific 2023 webinar series. We have
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an anticipated duration of one hour for
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today's webinar. We do have a few
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housekeeping items. Everyone will be
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kept on mute during the presentation so
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that we can keep the line clear of any
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background noise. If you have any
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questions or comments, we invite you to
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type them into the chat box at any time
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during the presentation. And we will
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try to answer as many questions as we
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can from the chat box at the end of the
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presentation.
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The Continuing Education credit code
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will be placed in the chat box
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throughout the presentation. So you can
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collect that information there. And
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today's webinar is being recorded and it
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will be posted to CBP.gov in the coming
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weeks. Our presenter today is National
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Import Specialist, Mr. Timothy
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Petrulonis. And Mr. Timothy Petrulonis,
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over to you, thank you.
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>> TIMOTHY PETRULONIS: Thank you
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very much. Good morning, good
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afternoon, and welcome, everybody. My
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name is Timothy Petrulonis also known as
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National Import Specialist are 228. I'm
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one of four food analyst who oversee the
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cultural food tariff heading chapters 1
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through 4. Today, I plan to provide an
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overview of tariff classification of
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pasta. On this screen, you'll see my
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contact information on this page. And
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I'll be putting up again at the end of
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this presentation. At any point, please
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do not hesitate to reach out to us with
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any questions or concerns that you may
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have. Please take a moment to read the
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CBP and Office of Trade directorate.
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It's one of 11 program offices within
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Customs and board of protection. And
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field ops, air, marine, and United
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States border patrol just to name a few.
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Office of Trade facilitates legitimate
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trade and enforce U.S. laws and protects
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the American economy to ensure consumer
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safety and to create a level playing
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field for American businesses.
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I do need to briefly go over this
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disclaimer, the material contained in
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this presentation is for general
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information purposes and intended to
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provide guidance and information to the
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trade commission. Because there are
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many complicated factors that may be
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involved in Customs issues, and reporter
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or anybody in the trade that wish to
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obtain a ruling under CBP ruling under
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C.F.R. part 177 or obtain guidance from
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product experts and matters such as
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license and license broker, attorney, or
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U.S. consultants. Any audio-visual
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media, including images, video, or sound
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contained within this presentation is
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either public domain or was obtained
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through the appropriate Copyright
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license and is included solely to
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provide context for the content
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provided. Audio-visual media is
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provided for educational purposes only
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and does not represent endorsement or
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approval by Customs or any creators or
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products. Further copying or
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distribution of any Copyright material
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may require permission from the original
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creator. Once again, I bring this up at
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every webinar. But this is reminder
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that member of the trade community may
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consider obtaining a binding ruling
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under 19 C.F.R. part 177., they're free
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service that Customs provides that
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offers the official position of Customs
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with respect to a particular set of
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fabricates for a perspective transition
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or issue.
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The national commodity specialist
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division offers binding rulings for
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classification, marking, country of
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origin and trade agreement. And
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generally provide a response within 30
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days from the date of submission of each
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request. But many of these requests are
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responded to sooner.
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Please see the link at the bottom of
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the slide. E-rulings link for further
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information that will take you to the
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e-rulings portal. At the end of this
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presentation, I'm going to provide a
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list of the common questions that the
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food NIS, specifically myself, may need
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as part of the submission process that
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will help us expedite any request you
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may submit in the future.
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The link to this webinar and all the
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webinars conducted by my peers for the
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respective commodities will be posted at
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this link. It generally takes the web
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masters in our office few weeks to vet
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and post for approval. And lastly, as
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questions arise, the Customs online
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search system known as CROSS is updated
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regularly and is a good resource for
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classification. CROSS is the official
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location for perspective to facts and
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transactions, once a ruling is issued,
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it is binding until modified or revoked.
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However, I always recommend apply the
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general rules of interpretation to the
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specific set of facts that you are
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reviewing first and use CROSS as a tool
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for research to support your decision
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after the fact. Please feel free to
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enter any questions in the chat box as
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you think of them, as we move forward in
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this presentation. And at the end of
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this webinar, I will try to answer them
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as best I can in the order that they
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were received.
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Alternatively, you can always send
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me an email to have a more product
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specific individualized conversation.
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And once again, I'll put that link up
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with our contact information at the end
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of the presentation. So today, today's
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topic will first include discussing
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high-level overview of the sections and
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chapters of the agricultural areas of
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the tariff in which pasta and related
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products may be classified. Next, I'm
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going to delve into a brief history of
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pasta for background purposes, followed
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by discussing the 4 digit heading that
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provides for pasta EO nom anyway and
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heading. And summarize antidumping and
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duties associated with pasta. The U.S.
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and EU Pasta Certification Program and
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not a pasta, and lastly, I'm going to
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finish up with hopefully considered a
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tariff classification knowledge check,
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which will, I hope will be fun.
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This slide, I'm going to go over the
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structure of the harmonized tariff
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system specifically sections 1 through
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4. Chapters 1 through 24, which the
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food NIS and including myself oversee.
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I'm sure on this presentation, we have
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people very skilled with the harmonized
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tariff, and those who are not, so I
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wanted to cover some basics. So as I've
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said, sections 1 through 4 make up the
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whole agricultural and prepared products
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area and they're divided into chapters
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as you see here. 24 in total. Chapters
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are first grouped into sections based on
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similar material and organized
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according to the level of processing.
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They progress from primary or basic
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articles to more technically complex
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articles. So for example, the
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vegetable's name in the initial heading
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provided for within section 2, Chapter 7
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provide for those named vegetable in a
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fresh or chilled condition as heading in
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the chapter specifically Chapter 7
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progress, the evolution of a vegetable
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advances from what's considered a
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primary article to one that is slightly
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more technically complex. The headings
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representing some of the concluding ones
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of Chapter 7, for example, heading 07,
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12, and 0713 provide for quote-unquote
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"technically advanced variation" of
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those products within the limits of the
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allowable processing in comparison to
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the products of the initial heading of
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the chapter. So kind of broad example
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of what I just detailed. Heading 0702
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and, 0703, and onions, chilled, and
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garlic, and fresh or chilled
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respectively. While in contrast,
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heading 0712 at the end of the schapt
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provides dry importation of those named
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vegetables in the proceeding heading of
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the chapter. Whether whole, cut,
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sliced, broken or in powder, but not
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further prepared. Chapter 20 in Section
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4 specifically headings 2004 and 2005
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provide for the vegetables prepared or
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preserved beyond the scope of what is
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allowable according to the tariff in
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section 2, Chapter 7.
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I bring this up, these examples
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because later in the presentation, some
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of these vegetables in a milled form may
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be used in the manufacture of pasta and
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can be crucial in assisting with tariff
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classification.
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So with that background out of the
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way, I'm going to provide a brief
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history of pasta. This is a long and
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complex one with many different theories
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about its origin. Commonly held believe
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is pasta originated in Italy. But
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there's evidence to suggest it may have
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been invented in China or Middle East.
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Pasta like noodle comes from China
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where they have been found in
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archaeological sites dating back to the
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4th century BC where tomorrow showing
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group of people making pasta. These
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noodles were made from wheat, flour, and
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water and cooked in a broth or a soup.
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While there's evidence to suggest pasta
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may have been originated in the Middle
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East. First Century AD, scholar wrote
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about food call Lange non-which is made
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from flour and water and cooked in a
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pot. And these food were similar to the
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modern-day pasta we know now and it was
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possible it was brought to Italy by
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Roman soldiers who traveled to the
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Middle East. First documented evidence
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of pasta in Italy dates back to the 12th
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Century from the cookbook from the time
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period, there's a recipe for a DHS
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called macaroni which was made from
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wheat, flour, and water. And this is
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similar to the modern-day macaroni now
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and it was likely the ancestors of many
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of the pasta dishes we know and love
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today. According to the national pasta
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association, popular legend, Marco Polo
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introduced pasta to Italy after the
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exploration of far east in the late 13th
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Century. Let's not forget about
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mythology. Greek mythology Greek God
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are Vulcan introduced the known as first
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spaghetti tea. But how did this DHS
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that I personally love make its way to
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the United States? Pasta is said to
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have made its way to the New World
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through English who discovered it while
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touring Italy. Colonialist brought it
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to America. The English practice of
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cooking noodles one-half hour and then
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smothering it with cream, sauce and
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cheese. The Brooklyn waterfront in the
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mid-1800s owned by French immigrant
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Antoine Duraga simply housed machinery
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powered by one horse and pasta strands
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of pasta was then laid on the roof for
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drying. Pasta expanded to 19th Century
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and pasta makers popped up across the
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country. Pasta production has since
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come a long way since then, and today,
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pasta remains a family favorite, and I
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said earlier, one of my favorite dishes
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and produced in countless shapes, sizes,
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with wheat, veggie, and gluten-free
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options available today.
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So there are many different
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varieties of pasta. They're usually
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sorted by size, being long, pasta long
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ga, pasta corta, stuffed, ripiena. And
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my personal favorite gnocchi. Some are
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uniquely originally and not widely
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known. Many times have different names
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based on region or language. So for
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example, the cut remote tall lay is
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known here in the United States and
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cooks often invent new shapes or create
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new existing shapes for marketing
00:13:50.324 --> 00:13:52.926
reasons. So you can divide pasta in two
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categories, long pasta and short pasta.
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The short variety such as penne, fusilli
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and the likes, they're easier to
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distinguish from each other. And while
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the longer variety of pasta where things
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get little confusing. So fettuccine is
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a long pasta that is cut into thick
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ribbons with a length of linguini and
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tagiate take. And from eggs and flour
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and noticeablely any taste. Fettuccine
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cut the ribbon long enough for fork
00:14:31.852 --> 00:14:35.187
full. Fettuccine can hold the shape of
00:14:35.187 --> 00:14:39.298
cream and tomato sauces and being served
00:14:39.298 --> 00:14:44.651
in a chunky cause. And if you're
00:14:44.651 --> 00:14:49.167
craving pasta DHS covered in creamy
00:14:49.167 --> 00:14:54.339
white sauce. And Mac macaroni and
00:14:54.339 --> 00:14:56.369
longer cousin made in a similar way
00:14:56.369 --> 00:14:59.667
using DEI and extruding machine and more
00:14:59.667 --> 00:15:02.019
of the pasta allowed through the machine
00:15:02.019 --> 00:15:10.687
before being cut. Cavatappi has more
00:15:10.687 --> 00:15:13.966
exotic flare and this takes choice for
00:15:13.966 --> 00:15:21.798
elevated take on Mac and Cheese.
00:15:21.798 --> 00:15:26.816
Connecticut chick Lee, and cooking egg,
00:15:26.816 --> 00:15:32.901
this is made from manufacturing conCzig
00:15:32.901 --> 00:15:35.196
Lee to hold the pasta and shape even
00:15:35.196 --> 00:15:37.535
though it's boiled or baked. The shell
00:15:37.535 --> 00:15:43.214
like shape of concilli, has one cavity
00:15:43.214 --> 00:15:46.061
on one side that can trap meat and
00:15:46.061 --> 00:15:49.312
vegetate gee inside. If that pasta can
00:15:49.312 --> 00:15:52.014
hold all sorts of thin or thick chunky
00:15:52.014 --> 00:15:53.669
sauces.
00:15:53.669 --> 00:15:56.634
However, when it comes to the
00:15:56.634 --> 00:15:59.960
classification in the tariff, that the 4
00:15:59.960 --> 00:16:01.966
digit heading of the tariff, the
00:16:01.966 --> 00:16:03.458
critical point I want to stress here and
00:16:03.458 --> 00:16:05.280
I want you to remember is that the
00:16:05.280 --> 00:16:07.967
shapes of pasta we are commonly familiar
00:16:07.967 --> 00:16:10.054
with on this screen or at the grocery
00:16:10.054 --> 00:16:14.917
store do not factor into its
00:16:14.917 --> 00:16:16.125
classification. Manufacturing process
00:16:16.125 --> 00:16:17.712
is key element in determining the
00:16:17.712 --> 00:16:20.038
classification, which is why I detailed
00:16:20.038 --> 00:16:22.500
it so thoroughly in this slide here
00:16:22.500 --> 00:16:24.542
while describing some of the examples.
00:16:24.542 --> 00:16:28.205
Like shell pasta and fettuccine and
00:16:28.205 --> 00:16:29.927
cavatappi and other shapes. So in the
00:16:29.927 --> 00:16:31.897
following upcoming slides, I'm going to
00:16:31.897 --> 00:16:34.352
detail why this narrative description of
00:16:34.352 --> 00:16:36.179
the manufacturing process is so
00:16:36.179 --> 00:16:38.220
important when it comes to tariff
00:16:38.220 --> 00:16:48.676
classification.
00:16:48.676 --> 00:16:51.053
So with that little history we
00:16:51.053 --> 00:16:52.768
revisited and the background out of the
00:16:52.768 --> 00:16:57.974
way, I like to transition over to what
00:16:57.974 --> 00:17:00.312
is meant by the pasta tariff
00:17:00.312 --> 00:17:02.868
classification purpose. So key-point I
00:17:02.868 --> 00:17:05.163
want to stress is tariff terms do not
00:17:05.163 --> 00:17:07.459
always align with real world examples.
00:17:07.459 --> 00:17:09.584
And in the upcoming slides, I'm going to
00:17:09.584 --> 00:17:12.032
do my best to explain what I mean by
00:17:12.032 --> 00:17:16.684
this. And support this with examples.
00:17:16.684 --> 00:17:20.068
So pasta has been formally classified by
00:17:20.068 --> 00:17:22.031
issuance of binding rulings and number
00:17:22.031 --> 00:17:27.153
of headings by tariff inning Chapter 4.
00:17:27.153 --> 00:17:29.381
And in this case, pasta has been
00:17:29.381 --> 00:17:31.037
classified in Chapter 16 which provides
00:17:31.037 --> 00:17:33.513
for preparations of meat, fish, or
00:17:33.513 --> 00:17:38.504
crustaceans. Heading 1901 with food
00:17:38.504 --> 00:17:41.788
preparation, flour, growth, or meal or
00:17:41.788 --> 00:17:45.157
starch and not included. And 2106 which
00:17:45.157 --> 00:17:47.513
is ultimate basket provision in food
00:17:47.513 --> 00:17:49.718
chapter for miscellaneous be food
00:17:49.718 --> 00:17:51.849
preparation not elsewhere specified or
00:17:51.849 --> 00:17:55.066
included. However, heading 1902 which
00:17:55.066 --> 00:17:57.392
is depicted on this slide here is the
00:17:57.392 --> 00:17:59.458
people Mary heading to consider and the
00:17:59.458 --> 00:18:02.614
more specific are heading when
00:18:02.614 --> 00:18:06.341
classifying EEO nom anyway whether or
00:18:06.341 --> 00:18:10.134
not cooked or stuffed, macaroni, ravioli
00:18:10.134 --> 00:18:12.663
low and so on and so forth. However,
00:18:12.663 --> 00:18:15.999
not all products marketed or named pasta
00:18:15.999 --> 00:18:18.468
such as the forms I said before
00:18:18.468 --> 00:18:22.320
spaghetti, gnocchi ziti, et cetera would
00:18:22.320 --> 00:18:24.226
be classified for more specific heading
00:18:24.226 --> 00:18:27.375
in 1902. Why is this? Well, it's
00:18:27.375 --> 00:18:31.338
because the explanatory notes heading to
00:18:31.338 --> 00:18:32.983
1902 provide guidance on what types of
00:18:32.983 --> 00:18:34.898
pasta fall within the scope of heading
00:18:34.898 --> 00:18:36.933
of tariff classification purposes. By
00:18:36.933 --> 00:18:38.927
stating the following.
00:18:38.927 --> 00:18:40.868
Pasta of this heading are
00:18:40.868 --> 00:18:47.948
unfermented products made from semolina
00:18:47.948 --> 00:18:52.159
and key word is, et cetera here. These
00:18:52.159 --> 00:18:55.044
semolina or flowers are first mix we had
00:18:55.044 --> 00:18:57.550
flour and mixtured into dough and
00:18:57.550 --> 00:19:00.295
created with other ingredients. They're
00:19:00.295 --> 00:19:02.591
formed by extrusion, or rolling and
00:19:02.591 --> 00:19:06.443
cutting and pressing molding or aglom
00:19:06.443 --> 00:19:08.201
medication into specific predetermined
00:19:08.201 --> 00:19:10.232
shapes, such as tubes, strips,
00:19:10.232 --> 00:19:13.869
filaments, beads, granules, stars, elbow
00:19:13.869 --> 00:19:16.291
so on and so forth. All these give rise
00:19:16.291 --> 00:19:17.881
to the name of the finished product such
00:19:17.881 --> 00:19:27.437
as macaroni, spaghetti, and noodles.
00:19:27.437 --> 00:19:30.110
So Customs has uniformly applied
00:19:30.110 --> 00:19:33.956
that pasta heading of 1902 must be
00:19:33.956 --> 00:19:37.680
formed from semolina, rice, wheat, or
00:19:37.680 --> 00:19:40.023
potatoes. And this was tested with the
00:19:40.023 --> 00:19:45.063
headquarters ruling letter H1089905
00:19:45.063 --> 00:19:48.101
which was issued back in almost 10 years
00:19:48.101 --> 00:19:50.999
ago to the date in 2013, which involved
00:19:50.999 --> 00:19:54.525
the classification of dry uncooked
00:19:54.525 --> 00:19:58.310
lentil strips. 30% gar ban know bean
00:19:58.310 --> 00:20:04.311
flour and 30% adzuki bean, and potato
00:20:04.311 --> 00:20:06.806
starch and small amount of pea starch
00:20:06.806 --> 00:20:09.773
and salt. And underring heading 1905
00:20:09.773 --> 00:20:12.444
which provides for bread pastry and
00:20:12.444 --> 00:20:16.166
other bakers wears and liquidated
00:20:16.166 --> 00:20:19.290
understand other vegetables prepared to
00:20:19.290 --> 00:20:22.196
preserve and. Protest came in
00:20:22.196 --> 00:20:25.395
requesting subheading 1902-19 which
00:20:25.395 --> 00:20:26.982
provides for pasta, whether or not
00:20:26.982 --> 00:20:30.875
cooked or stuffed. I cite this because
00:20:30.875 --> 00:20:32.307
this ruling is excellent source of
00:20:32.307 --> 00:20:35.624
material and professors several
00:20:35.624 --> 00:20:38.056
definitions of term pasta that we use to
00:20:38.056 --> 00:20:40.822
this day. Key statement extended in the
00:20:40.822 --> 00:20:42.827
issuance I wanted to highlight for you
00:20:42.827 --> 00:20:46.409
when attempting to classify pasta
00:20:46.409 --> 00:20:47.743
related product in front of you is the
00:20:47.743 --> 00:20:48.818
following.
00:20:48.818 --> 00:20:50.690
So when determining the meaning of
00:20:50.690 --> 00:20:54.487
tariff terms, and whether a specific
00:20:54.487 --> 00:20:56.678
merchandise comports with the term of
00:20:56.678 --> 00:21:01.366
heading 1902, CBP has applied the
00:21:01.366 --> 00:21:06.364
doctrine of noscitur a sociis. And
00:21:06.364 --> 00:21:08.560
examination of dictionary and commercial
00:21:08.560 --> 00:21:11.795
sources reveal that pasta has certain
00:21:11.795 --> 00:21:13.499
characteristics that make it a pasta.
00:21:13.499 --> 00:21:16.924
So one of those examination of
00:21:16.924 --> 00:21:19.056
commercial sources such as the Oxford
00:21:19.056 --> 00:21:21.235
dictionary defines pasta as thin
00:21:21.235 --> 00:21:23.911
strands, sheets, or other shapes of
00:21:23.911 --> 00:21:26.485
dough made from Durham, wheat, and
00:21:26.485 --> 00:21:35.968
water. And Webster define as --
00:21:35.968 --> 00:21:38.967
macaroni used fresh or ravioli.
00:21:38.967 --> 00:21:41.621
Heritage dictionary defines unleavened
00:21:41.621 --> 00:21:45.959
dough from wheat, flour and water molded
00:21:45.959 --> 00:21:48.308
into variety of shapes and boiled. And
00:21:48.308 --> 00:21:52.774
defines pasta contain pasta as its main
00:21:52.774 --> 00:21:55.987
ingredient. Encyclopedia define pasta
00:21:55.987 --> 00:21:59.470
as several starchy food paste and made
00:21:59.470 --> 00:22:02.596
from semolina and purified from hard
00:22:02.596 --> 00:22:05.788
wheat called Durham. Other commercial
00:22:05.788 --> 00:22:07.608
sources confirm this interpretation and
00:22:07.608 --> 00:22:10.320
also focus on the fact pasta is
00:22:10.320 --> 00:22:12.164
traditionally made with semolina or
00:22:12.164 --> 00:22:15.151
Durham. And pasta is a food made with
00:22:15.151 --> 00:22:17.451
semolina and wheat and cooked by being
00:22:17.451 --> 00:22:19.392
boiled. In this headquarters ruling,
00:22:19.392 --> 00:22:21.296
determination was made subject lentil
00:22:21.296 --> 00:22:24.434
did not COM Port with the exemplars or
00:22:24.434 --> 00:22:27.305
examples listed in the 1902 to be
00:22:27.305 --> 00:22:29.572
considered a pasta classification
00:22:29.572 --> 00:22:33.209
purposes. The lentils were meant to be
00:22:33.209 --> 00:22:36.585
baked and eat to be eaten as a snack
00:22:36.585 --> 00:22:39.066
than main meal and eaten alone where
00:22:39.066 --> 00:22:40.852
pasta is served. The manufacturing
00:22:40.852 --> 00:22:42.329
information provided or revealed that
00:22:42.329 --> 00:22:45.108
the lentils were also exreuded into a
00:22:45.108 --> 00:22:47.295
rectangular shape, size of a cracker
00:22:47.295 --> 00:22:50.333
that those doesn't serve well to hold in
00:22:50.333 --> 00:22:54.566
the sauce. And lentil usht went a
00:22:54.566 --> 00:22:57.329
manufacturing process outlined in the EN
00:22:57.329 --> 00:23:01.131
in 1902 was determined to in sufficient
00:23:01.131 --> 00:23:04.470
to classify as a pasta in 1902. Last
00:23:04.470 --> 00:23:07.764
thing the factored into the decision
00:23:07.764 --> 00:23:10.143
that lentil were not interchangeable
00:23:10.143 --> 00:23:12.175
with pasta to the contrary, products
00:23:12.175 --> 00:23:14.182
such as lentils were called half
00:23:14.182 --> 00:23:15.452
products in the industry and recognized
00:23:15.452 --> 00:23:17.554
as a separate type of product with its
00:23:17.554 --> 00:23:19.817
own commercial identity. Half products
00:23:19.817 --> 00:23:22.185
are dried brittle product developed by
00:23:22.185 --> 00:23:25.011
the snack food industry to create
00:23:25.011 --> 00:23:26.438
products puffed or otherwise expanded.
00:23:26.438 --> 00:23:28.607
Half products are considered to have no
00:23:28.607 --> 00:23:31.009
culinary use of pasta and will not be
00:23:31.009 --> 00:23:32.657
sold as pasta. Rather that happen being
00:23:32.657 --> 00:23:37.979
boiled, they're baked or fried and cause
00:23:37.979 --> 00:23:41.369
that is puffed finish for a snack food.
00:23:41.369 --> 00:23:43.977
Classification in heading 1902 as a
00:23:43.977 --> 00:23:45.385
pasta requires more than being
00:23:45.385 --> 00:23:46.910
manufactured and processed in the same
00:23:46.910 --> 00:23:50.168
manner of pasta. The subject lentil in
00:23:50.168 --> 00:23:52.800
this case, despite being a flour mixed
00:23:52.800 --> 00:23:54.861
with flour needed into a dough and
00:23:54.861 --> 00:23:57.041
extruded into shape lacked the character
00:23:57.041 --> 00:23:59.219
of pasta for all the reasons that I just
00:23:59.219 --> 00:24:00.847
mentioned.
00:24:00.847 --> 00:24:04.028
As a result, the fact that its
00:24:04.028 --> 00:24:05.718
manufacturing process was similar
00:24:05.718 --> 00:24:10.285
described by the Explanatory Note was in
00:24:10.285 --> 00:24:13.428
service to the heading classification of
00:24:13.428 --> 00:24:15.789
1902. And these subject strips here,
00:24:15.789 --> 00:24:17.889
they were classified ultimately not as a
00:24:17.889 --> 00:24:23.027
pasta but as in heading 205 as other
00:24:23.027 --> 00:24:28.373
vegetables prepared otherwise by
00:24:28.373 --> 00:24:34.840
vinegar.
00:24:34.840 --> 00:24:36.906
So what about all the modern
00:24:36.906 --> 00:24:42.888
gluten-free pasta being prepared from
00:24:42.888 --> 00:24:45.788
vegetables being prepared we see
00:24:45.788 --> 00:24:48.790
commonly? Until two years ago, pasta
00:24:48.790 --> 00:24:50.805
tariff classification purpose was
00:24:50.805 --> 00:24:52.146
considered slowly and strictly as a food
00:24:52.146 --> 00:24:54.635
that is made with semolina and wheat.
00:24:54.635 --> 00:24:57.465
It wasn't until the issuance of
00:24:57.465 --> 00:25:01.836
headquarters ruling H316296 that you see
00:25:01.836 --> 00:25:04.431
on this slide which was issued back in
00:25:04.431 --> 00:25:08.277
the summer of 2021 just a little over
00:25:08.277 --> 00:25:10.382
two years ago where this official
00:25:10.382 --> 00:25:11.760
interpretation evolved. In this
00:25:11.760 --> 00:25:13.964
request, the items at issue involved a
00:25:13.964 --> 00:25:15.893
classification of five different
00:25:15.893 --> 00:25:17.652
varieties of gluten-free pasta,
00:25:17.652 --> 00:25:20.354
specifically the varieties included
00:25:20.354 --> 00:25:32.547
organic and Ed mom may, and mung bean,
00:25:32.547 --> 00:25:36.784
and black bean spaghetti and most
00:25:36.784 --> 00:25:39.043
importantly, I wanted to stress here,
00:25:39.043 --> 00:25:41.797
this ruling expanded Customs and
00:25:41.797 --> 00:25:43.614
explaining of Explanatory Note to
00:25:43.614 --> 00:25:45.966
heading 1902 to respect to
00:25:45.966 --> 00:25:47.986
non-traditional flour which were
00:25:47.986 --> 00:25:50.308
previously excluded from classification
00:25:50.308 --> 00:25:52.477
within. Each of the 5 varieties of
00:25:52.477 --> 00:25:55.103
gluten-free pasta contained two critical
00:25:55.103 --> 00:25:57.236
components. Ingredients, therefore, soy
00:25:57.236 --> 00:25:59.481
bean, flour, and water. While some of
00:25:59.481 --> 00:26:02.644
the varieties of gluten-free pasta also
00:26:02.644 --> 00:26:03.754
contained other flowers such as mung
00:26:03.754 --> 00:26:07.654
bean flour, black sesame flour, each
00:26:07.654 --> 00:26:10.328
variety of gluten-free pasta was made
00:26:10.328 --> 00:26:12.430
from soy bean flour. The flowers were
00:26:12.430 --> 00:26:13.797
said to be manufactured by being
00:26:13.797 --> 00:26:16.310
processed into a dough and undergoing
00:26:16.310 --> 00:26:18.125
additional manufacturing to produce a
00:26:18.125 --> 00:26:21.253
pasta by means of extrusion, drying,
00:26:21.253 --> 00:26:23.743
cooling, and cutting. Each of the 5
00:26:23.743 --> 00:26:26.468
variety of gluten-free pasta were
00:26:26.468 --> 00:26:28.088
determined to be manufactured in the
00:26:28.088 --> 00:26:30.031
same way as traditional pasta which
00:26:30.031 --> 00:26:32.741
resulted in a product which appears
00:26:32.741 --> 00:26:35.317
identical to pasta coming in the
00:26:35.317 --> 00:26:42.878
traditional pasta shape, albeit with
00:26:42.878 --> 00:26:53.631
variant in color. And march p
00:26:53.631 --> 00:26:55.726
merchandise as pasta, which means the
00:26:55.726 --> 00:26:58.621
dry pasta would be boiled in water
00:26:58.621 --> 00:27:00.462
before being served alongside the
00:27:00.462 --> 00:27:02.626
consumers. And prefer sauce or
00:27:02.626 --> 00:27:05.350
flavoring. And gluten-free processed
00:27:05.350 --> 00:27:07.010
the same general physical
00:27:07.010 --> 00:27:08.947
characteristics as traditional made
00:27:08.947 --> 00:27:11.659
pasta. Which imparts an identical
00:27:11.659 --> 00:27:13.636
expectation of the product to the
00:27:13.636 --> 00:27:17.243
ultimate purchaser if facilitates use as
00:27:17.243 --> 00:27:18.217
a pasta.
00:27:18.217 --> 00:27:20.192
So incoming to the determination on
00:27:20.192 --> 00:27:24.786
the classification on this case of these
00:27:24.786 --> 00:27:28.452
gluten-free pa Tass, various food
00:27:28.452 --> 00:27:30.293
products may be composed of traditional
00:27:30.293 --> 00:27:32.433
and non-traditional ingredients to
00:27:32.433 --> 00:27:34.656
conform to the ever-changing needs of
00:27:34.656 --> 00:27:36.674
modern consumer. One such trend has
00:27:36.674 --> 00:27:44.061
been the emergence of gluten-free
00:27:44.061 --> 00:27:45.275
product. And modernized and
00:27:45.275 --> 00:27:48.503
interpretation of Explanatory Note to
00:27:48.503 --> 00:27:51.933
heading 1902 with respectively to the
00:27:51.933 --> 00:27:54.617
term, et cetera, ruling that soy bean
00:27:54.617 --> 00:27:56.349
flour is akin to the other flowers
00:27:56.349 --> 00:27:58.653
listed I have an the Explanatory Note
00:27:58.653 --> 00:28:02.449
more specifically such as wheat, maize,
00:28:02.449 --> 00:28:05.772
potato flour so that comparable amount
00:28:05.772 --> 00:28:07.309
of manufacturing procedures are employed
00:28:07.309 --> 00:28:14.205
in the manufacturing of pasta.
00:28:14.205 --> 00:28:16.884
So there's a lot that we curve
00:28:16.884 --> 00:28:20.390
considering pasta for classification.
00:28:20.390 --> 00:28:26.555
If a product qualifies, there a number
00:28:26.555 --> 00:28:28.709
of international 6 digit subheading
00:28:28.709 --> 00:28:31.442
level to consider. The first is
00:28:31.442 --> 00:28:33.201
uncooked pasta not stuffed or otherwise
00:28:33.201 --> 00:28:35.336
prepared and containing eggs. Which is
00:28:35.336 --> 00:28:39.118
classified in 190211. If uncooked pasta
00:28:39.118 --> 00:28:41.101
is not stuffed or otherwise prepared and
00:28:41.101 --> 00:28:43.033
does not contain eggs, the pasta is
00:28:43.033 --> 00:28:47.163
classified under subheading 190219. If
00:28:47.163 --> 00:28:52.501
the pasta is stuffed, such as ravioli or
00:28:52.501 --> 00:28:59.572
tortellini, cooked or not, 1902.20.
00:28:59.572 --> 00:29:03.664
Other pass not stuffed such as
00:29:03.664 --> 00:29:07.732
precooked, fried, or steamed, in
00:29:07.732 --> 00:29:13.100
subheading 1902.30. And couscous of
00:29:13.100 --> 00:29:17.386
spherical granule moistened with
00:29:17.386 --> 00:29:19.738
saltwater and fine ground with wheat
00:29:19.738 --> 00:29:22.980
flour. EN describe as heat-treated
00:29:22.980 --> 00:29:25.527
semolina. Also want to know pasta
00:29:25.527 --> 00:29:30.184
package with classified subheading 19011
00:29:30.184 --> 00:29:32.106
and depending on the egg content. And
00:29:32.106 --> 00:29:34.220
the specific subheading for the pasta
00:29:34.220 --> 00:29:37.239
will depend on type of pasta,
00:29:37.239 --> 00:29:41.735
ingredients used and whether it's
00:29:41.735 --> 00:29:44.854
stuffed. Remember key-point I want to
00:29:44.854 --> 00:29:46.321
stress at the conclusion of this slide
00:29:46.321 --> 00:29:49.777
is that these subheading should only be
00:29:49.777 --> 00:29:52.407
consulted as long as they satisfy the
00:29:52.407 --> 00:29:55.513
requirement for 4 digit heading of pasta
00:29:55.513 --> 00:29:57.354
1902 as I talked about in the previous
00:29:57.354 --> 00:29:59.644
slides. Pasta with similar names and
00:29:59.644 --> 00:30:01.612
appearances but involving different
00:30:01.612 --> 00:30:03.731
ingredients and may be classified
00:30:03.731 --> 00:30:05.482
elsewhere. I'm going to touch on this
00:30:05.482 --> 00:30:07.868
topic in more detail in few slides down
00:30:07.868 --> 00:30:11.370
the road. Pasta classified in Chapter
00:30:11.370 --> 00:30:12.838
19 may be subject to additional duties
00:30:12.838 --> 00:30:15.666
depending upon where the pasta is
00:30:15.666 --> 00:30:18.003
imported from. International trade
00:30:18.003 --> 00:30:20.046
commission, ITC and U.S. Department of
00:30:20.046 --> 00:30:24.317
Commerce are conducts subsidies of 5
00:30:24.317 --> 00:30:26.678
years reports of statistics. Some
00:30:26.678 --> 00:30:32.041
foreign government -- product can be
00:30:32.041 --> 00:30:35.105
imported and sold at a lower price than
00:30:35.105 --> 00:30:37.655
a domestic producer could sell. Could
00:30:37.655 --> 00:30:39.724
manufacture and sell the good or same
00:30:39.724 --> 00:30:42.038
goods for. This is called dumping. If
00:30:42.038 --> 00:30:44.951
the DOC finds that important product is
00:30:44.951 --> 00:30:49.084
dumpedz or substance diced and ITC finds
00:30:49.084 --> 00:30:53.017
similar product is injured, an
00:30:53.017 --> 00:30:58.137
antidumping or CBD may be imposed.
00:30:58.137 --> 00:31:02.324
So the DOC instructs CBP Customs to
00:31:02.324 --> 00:31:06.021
assess anti-Customs to offset the unfair
00:31:06.021 --> 00:31:08.132
trade practices as result of the
00:31:08.132 --> 00:31:11.265
Department of Commerce's review of the
00:31:11.265 --> 00:31:14.199
pasta importation from Italy and Turkey.
00:31:14.199 --> 00:31:17.864
Tus couple is tasked with the cash
00:31:17.864 --> 00:31:19.774
deposit and CBD duties. So for example,
00:31:19.774 --> 00:31:22.263
on this slide here when pasta is
00:31:22.263 --> 00:31:25.655
classified in subheading 1902, 1920 from
00:31:25.655 --> 00:31:28.366
Italy or Turkey with certain
00:31:28.366 --> 00:31:30.734
manufacturers are exported or withdrawn
00:31:30.734 --> 00:31:34.124
from the warehouse, importers are
00:31:34.124 --> 00:31:37.253
required to submit cash deposit on
00:31:37.253 --> 00:31:40.647
varying amounts. On this slide here, I
00:31:40.647 --> 00:31:42.502
have the exact case numbers from each
00:31:42.502 --> 00:31:46.313
country enumerated for A for antidumping
00:31:46.313 --> 00:31:51.007
and C for countervailing duties. ADC
00:31:51.007 --> 00:31:54.189
scope language that subject antidumping
00:31:54.189 --> 00:31:56.121
and duties. And it is written by the
00:31:56.121 --> 00:31:58.517
petitioners. And they are
00:31:58.517 --> 00:32:02.500
representatives within the industry.
00:32:02.500 --> 00:32:04.237
And on this slide here, I have a
00:32:04.237 --> 00:32:06.402
description of the scope of what it
00:32:06.402 --> 00:32:10.629
includes and what is excluded from the
00:32:10.629 --> 00:32:17.537
slope. And for tariff purposes, this
00:32:17.537 --> 00:32:19.913
must be based on flour or meals and
00:32:19.913 --> 00:32:22.954
pasta be based on wheat, semolina or
00:32:22.954 --> 00:32:25.953
meal. If it's described as a pasta,
00:32:25.953 --> 00:32:30.501
then it's included in the scope. So the
00:32:30.501 --> 00:32:32.761
United States European Community Pasta
00:32:32.761 --> 00:32:34.594
Certification Program outline
00:32:34.594 --> 00:32:36.859
classification and reporting
00:32:36.859 --> 00:32:39.220
requirements back in fall of 1,986th,
00:32:39.220 --> 00:32:42.601
the U.S. and EC, now the European union
00:32:42.601 --> 00:32:45.458
entered into an agreement to solve
00:32:45.458 --> 00:32:48.109
long-standing dispute over exports of
00:32:48.109 --> 00:32:50.935
subsidized pasta product to the U.S.
00:32:50.935 --> 00:32:55.114
Presidential proclamation 5712 dated
00:32:55.114 --> 00:32:57.814
September 30, 1987 implemented the
00:32:57.814 --> 00:32:59.399
procedure of that agreement. Condition
00:32:59.399 --> 00:33:00.925
of that agreement included the
00:33:00.925 --> 00:33:03.555
additional documentation for all the
00:33:03.555 --> 00:33:06.587
Durham, wheat-based pasta imported from
00:33:06.587 --> 00:33:09.459
countries of EU. And the documentation
00:33:09.459 --> 00:33:13.949
of EUP1 or EUP2 form which required
00:33:13.949 --> 00:33:17.836
listing of pasta breakdown by weight for
00:33:17.836 --> 00:33:21.979
example, for the pasta. EUP1 for
00:33:21.979 --> 00:33:24.521
processing regime deals with exports of
00:33:24.521 --> 00:33:30.909
pasta to the U.S. And the EUP2
00:33:30.909 --> 00:33:32.695
certificate for the export of pasta to
00:33:32.695 --> 00:33:35.405
the U.S. is also issued by the EU
00:33:35.405 --> 00:33:38.466
country for pasta exported to U.S. under
00:33:38.466 --> 00:33:47.333
subheading 19023.11, 1902.19, and
00:33:47.333 --> 00:34:00.632
1902.11 again. So I detailed few slides
00:34:00.632 --> 00:34:05.484
earlier, pasta is provided for EO nam
00:34:05.484 --> 00:34:10.193
anyway. The explanatory notes and
00:34:10.193 --> 00:34:12.689
rulings provide guidance and serve as
00:34:12.689 --> 00:34:14.421
excellent examples and source material
00:34:14.421 --> 00:34:17.160
as to the type of products that would
00:34:17.160 --> 00:34:19.529
fall within this heading. But not all
00:34:19.529 --> 00:34:22.071
products that are called pasta are
00:34:22.071 --> 00:34:24.136
marketed as such would be classified in
00:34:24.136 --> 00:34:26.805
heading 1902. There are number of
00:34:26.805 --> 00:34:28.586
rulings issued over the years that
00:34:28.586 --> 00:34:30.753
provide examples of the types of pasta
00:34:30.753 --> 00:34:32.722
products that would not be considered
00:34:32.722 --> 00:34:35.589
pasta for tariff or tariff
00:34:35.589 --> 00:34:38.304
classification purposes and heading
00:34:38.304 --> 00:34:40.176
1902 even after the modernized approach
00:34:40.176 --> 00:34:42.708
of classification gluten-free pastas
00:34:42.708 --> 00:34:45.630
that was issued in the fall of 2021 that
00:34:45.630 --> 00:34:49.609
I discussed earlier. The first example
00:34:49.609 --> 00:34:51.899
of what would not be considered a pasta
00:34:51.899 --> 00:34:54.626
for heading 1902 would be products made
00:34:54.626 --> 00:34:57.145
of dough consisting of starch and water.
00:34:57.145 --> 00:35:02.415
New York ruling letter 8902 and product
00:35:02.415 --> 00:35:12.638
called verm Celie, whichs vermcelli and
00:35:12.638 --> 00:35:19.177
classified in subheading, in heading
00:35:19.177 --> 00:35:21.374
1901 as food preparation of flour,
00:35:21.374 --> 00:35:24.032
growth, meal, and starch and not
00:35:24.032 --> 00:35:27.188
specified or included. Pair lelg this
00:35:27.188 --> 00:35:33.026
decision ruling to 271271 issued more
00:35:33.026 --> 00:35:42.718
recently in 2016, and bean thread was
00:35:42.718 --> 00:35:46.218
described as long round noodles with a
00:35:46.218 --> 00:35:49.323
diameter of one millimeter or different
00:35:49.323 --> 00:35:54.076
thickness composed of 78% pea starch,
00:35:54.076 --> 00:36:02.639
and 9% mung bean starch. And including
00:36:02.639 --> 00:36:04.513
boiling or sir identifying. Products
00:36:04.513 --> 00:36:06.895
made from vegetable material that has
00:36:06.895 --> 00:36:10.944
been crushed and formed, so for example,
00:36:10.944 --> 00:36:13.235
bean stick, bean cake, et cetera would
00:36:13.235 --> 00:36:15.448
not be considered a pasta for
00:36:15.448 --> 00:36:18.393
classification purposes in the heading
00:36:18.393 --> 00:36:19.934
1902 either.
00:36:19.934 --> 00:36:22.641
Certain noodles are not pasta for
00:36:22.641 --> 00:36:24.132
tariff classification purposes. For
00:36:24.132 --> 00:36:29.403
example, in headquarters ruling letter
00:36:29.403 --> 00:36:32.993
H095603 issued in the fall of 2010. And
00:36:32.993 --> 00:36:36.442
involved rice noodle made of 76%
00:36:36.442 --> 00:36:39.639
cornstarch. 2% right, and 22% water.
00:36:39.639 --> 00:36:42.261
The primary issue in this case whether
00:36:42.261 --> 00:36:46.268
the rice noodle made of starch was made
00:36:46.268 --> 00:36:49.150
as pasta. 1902. And determination made
00:36:49.150 --> 00:36:52.157
in that case rice noodle did not contain
00:36:52.157 --> 00:36:54.874
semolina rice or flowers, and thus rice
00:36:54.874 --> 00:36:57.454
noodles with not considered pasta for
00:36:57.454 --> 00:37:00.423
heading of 1902. Rice noodles were
00:37:00.423 --> 00:37:04.452
classified in heading 1901. Referencing
00:37:04.452 --> 00:37:06.528
the explanatory notes which included
00:37:06.528 --> 00:37:11.256
food prep with a basis of flour. Meal
00:37:11.256 --> 00:37:14.734
or starch or malt extract. Which
00:37:14.734 --> 00:37:17.399
deliefd the essential character from the
00:37:17.399 --> 00:37:21.495
essential material by weight or volume.
00:37:21.495 --> 00:37:23.338
Referring back to an earlier slide
00:37:23.338 --> 00:37:29.334
of pasta shapes, Vermicelli was similar
00:37:29.334 --> 00:37:36.048
to spaghetti tea. But in case of
00:37:36.048 --> 00:37:42.194
Vermicelli, it was prepared from 100%
00:37:42.194 --> 00:37:45.042
sweet potato starch. And entry was
00:37:45.042 --> 00:37:48.572
liquidated under heading 1901 and
00:37:48.572 --> 00:37:50.998
protest came in. It was argued the
00:37:50.998 --> 00:37:55.371
claim classification was erroneous
00:37:55.371 --> 00:37:56.835
because this was made directly from
00:37:56.835 --> 00:37:59.186
flour or meal such as spaghetti tea,
00:37:59.186 --> 00:38:03.611
macaroni, noodle, gnocchi and so forth.
00:38:03.611 --> 00:38:05.983
The retort in the decision was that
00:38:05.983 --> 00:38:09.414
while the Explanatory Note under 1902
00:38:09.414 --> 00:38:13.573
you see it not include pasta to
00:38:13.573 --> 00:38:16.812
unfermented products made from semolina
00:38:16.812 --> 00:38:20.721
or flour, wheat, maize,, et cetera. And
00:38:20.721 --> 00:38:28.959
details these semolinas are flours, and
00:38:28.959 --> 00:38:31.444
mixed with other greenhouses. The
00:38:31.444 --> 00:38:33.375
Explanatory Note notes indicate and
00:38:33.375 --> 00:38:34.695
provide guidance. And provide guidance
00:38:34.695 --> 00:38:37.818
that heading 1902 pasta may be derived
00:38:37.818 --> 00:38:40.176
from a variety of vemgable matter or
00:38:40.176 --> 00:38:42.382
grains and may be fashioned into any
00:38:42.382 --> 00:38:44.615
shape. However, the key-point to stress
00:38:44.615 --> 00:38:46.939
here is that no latitude regarding the
00:38:46.939 --> 00:38:48.978
inter marrying ingredient, the pasta
00:38:48.978 --> 00:38:51.868
must be made from pre-existing semolina
00:38:51.868 --> 00:38:54.765
or flours. The Vermicelli in question
00:38:54.765 --> 00:39:01.159
in this case was made from 100% sweet
00:39:01.159 --> 00:39:03.777
potato starch and pasta is created from
00:39:03.777 --> 00:39:06.447
the resulting starch. Classification in
00:39:06.447 --> 00:39:10.621
heading 1902 would not apply.
00:39:10.621 --> 00:39:12.598
Gnocchi is defined as variety of
00:39:12.598 --> 00:39:16.747
family of dumping in Italian cuisine.
00:39:16.747 --> 00:39:19.996
They're made from several lumps of dough
00:39:19.996 --> 00:39:22.741
traditionally composed of wheat, flour,
00:39:22.741 --> 00:39:25.443
egg, salt and potato. For purposes of
00:39:25.443 --> 00:39:27.774
gnocchi at issue in New York ruling
00:39:27.774 --> 00:39:33.193
letter N117195, issued in 2010, it was
00:39:33.193 --> 00:39:35.743
not classified as pasta for purposes of
00:39:35.743 --> 00:39:39.100
heading 1902. In this case it was ruled
00:39:39.100 --> 00:39:48.064
that sweet potato smashed and butter and
00:39:48.064 --> 00:39:52.138
classified in subheading 21069995 as
00:39:52.138 --> 00:39:54.779
food preparations not elsewhere
00:39:54.779 --> 00:39:57.466
specified or included. Based on the
00:39:57.466 --> 00:40:00.347
production, on the products ingredients,
00:40:00.347 --> 00:40:01.586
and composition and method of
00:40:01.586 --> 00:40:06.194
production. And lastly, New York ruling
00:40:06.194 --> 00:40:14.217
letter 872243, and 318612 issued in
00:40:14.217 --> 00:40:17.480
2021, the product at issue contained
00:40:17.480 --> 00:40:20.503
starches or miscellaneous powders and
00:40:20.503 --> 00:40:22.193
consistent with heading 1902 and
00:40:22.193 --> 00:40:25.097
Explanatory Note, the scope covered
00:40:25.097 --> 00:40:27.978
products that could not be expanded to
00:40:27.978 --> 00:40:30.309
include products made from or derived
00:40:30.309 --> 00:40:41.885
from starches or powders. The final
00:40:41.885 --> 00:40:43.313
example, but very important example I
00:40:43.313 --> 00:40:44.779
wanted to highlight was headquarters
00:40:44.779 --> 00:40:48.467
ruling letter H28285 here on the screen
00:40:48.467 --> 00:40:50.342
that was actually issued earlier this
00:40:50.342 --> 00:40:55.082
year in the winter back on January 9.
00:40:55.082 --> 00:41:00.456
(H328285. What is not considered pasta
00:41:00.456 --> 00:41:01.819
for classification purposes even though
00:41:01.819 --> 00:41:04.760
it has same name and similar appearance.
00:41:04.760 --> 00:41:05.949
The ruling involved the
00:41:05.949 --> 00:41:09.397
classification of frozen cooked seafood
00:41:09.397 --> 00:41:15.575
protein pasta. Pasta was primarily
00:41:15.575 --> 00:41:19.668
composed of fish. Plain variety
00:41:19.668 --> 00:41:22.771
consisted of 44% fish protein. The
00:41:22.771 --> 00:41:29.299
garlic, tomato and Lemer pepper variety
00:41:29.299 --> 00:41:33.077
contained similar percentages of fish
00:41:33.077 --> 00:41:36.434
protein. The tariff heading under
00:41:36.434 --> 00:41:38.443
consideration were heading 1902 as
00:41:38.443 --> 00:41:42.809
viewed earlier provides nom anyway for
00:41:42.809 --> 00:41:45.902
pasta and prepared or prepared fish.
00:41:45.902 --> 00:41:48.129
And the last resort basket provision of
00:41:48.129 --> 00:41:51.288
heading 2106 which provides food
00:41:51.288 --> 00:41:53.075
preparation not else specified or
00:41:53.075 --> 00:41:54.993
included. Critical issue in this case
00:41:54.993 --> 00:41:57.121
was the large percentage of fish protein
00:41:57.121 --> 00:41:59.124
in each product. Or review of the legal
00:41:59.124 --> 00:42:02.287
notes reinforced the facts that no two
00:42:02.287 --> 00:42:05.396
chapter 16 provides food preparation and
00:42:05.396 --> 00:42:09.685
contains more than 20% by weight of
00:42:09.685 --> 00:42:12.802
meat, fish, or crussation. And this
00:42:12.802 --> 00:42:16.595
does not apply to stuffed products. In
00:42:16.595 --> 00:42:18.784
this case, pasta was not described as
00:42:18.784 --> 00:42:21.818
stuffed, so the latter part of the legal
00:42:21.818 --> 00:42:24.406
note was mute. And cross finding notes
00:42:24.406 --> 00:42:29.243
at issue was note one chapter 19 which
00:42:29.243 --> 00:42:32.365
provides this note does not cover exeapt
00:42:32.365 --> 00:42:35.928
except in the case of heading 1902, food
00:42:35.928 --> 00:42:38.790
preparation containing 20% by weight of
00:42:38.790 --> 00:42:40.724
sausage, meat, fish, crustacean, et
00:42:40.724 --> 00:42:47.548
cetera. Of Chapter 16. And note 2
00:42:47.548 --> 00:42:50.561
chapter 16, 1A, both state that the
00:42:50.561 --> 00:42:52.519
product which contains more than 20%
00:42:52.519 --> 00:42:54.811
weight of fish classified in Chapter 16,
00:42:54.811 --> 00:42:56.744
however the note states that stuffed
00:42:56.744 --> 00:43:00.198
pasta is always classified in 1902
00:43:00.198 --> 00:43:03.007
regardless of fish used. So in order to
00:43:03.007 --> 00:43:05.421
apply the correct legal note, which is
00:43:05.421 --> 00:43:09.306
statutory for classification purposes,
00:43:09.306 --> 00:43:11.114
we must first consider whether the
00:43:11.114 --> 00:43:13.311
product at issue, these fish protein
00:43:13.311 --> 00:43:16.540
pasta is classified as pasta under
00:43:16.540 --> 00:43:18.651
heading 1902.
00:43:18.651 --> 00:43:27.497
In contrast to the gluten-free
00:43:27.497 --> 00:43:30.495
pasta, it's not derived from semolina or
00:43:30.495 --> 00:43:35.577
flours of any time. EN heading of 1902.
00:43:35.577 --> 00:43:37.172
Manufacturing process which was
00:43:37.172 --> 00:43:39.923
critical of the fish protein pasta
00:43:39.923 --> 00:43:42.019
played a critical factor in the
00:43:42.019 --> 00:43:44.943
classification. In this case, pasta
00:43:44.943 --> 00:43:49.675
were involved mixing cut frozen blocks
00:43:49.675 --> 00:43:53.903
of Alaska Pollack, egg white, salt, and
00:43:53.903 --> 00:43:56.587
flavoring. And additional ingredients
00:43:56.587 --> 00:44:00.257
depending on the flavor profile until
00:44:00.257 --> 00:44:02.902
Hodgeizeed material is formed. That
00:44:02.902 --> 00:44:04.898
material was then placed into a ball
00:44:04.898 --> 00:44:08.441
cutter if grinded to cut a dough.
00:44:08.441 --> 00:44:13.126
Unlike traditional pasta or gluten-free
00:44:13.126 --> 00:44:17.454
pasta cited earlier, it's dry, cool, and
00:44:17.454 --> 00:44:19.972
but into pasta. The fish protein pasta
00:44:19.972 --> 00:44:23.090
in this case is a dough until it's
00:44:23.090 --> 00:44:25.675
extruded into filaments over a cooking
00:44:25.675 --> 00:44:27.651
belt where it's cooked and jellified
00:44:27.651 --> 00:44:31.907
into steam. Frozen blocks of alka
00:44:31.907 --> 00:44:36.490
Pollack and cooked with steam, the fish
00:44:36.490 --> 00:44:38.815
protein pasta was not processed into a
00:44:38.815 --> 00:44:40.516
flour which was then processed into a
00:44:40.516 --> 00:44:42.974
dough. Instead, the product was
00:44:42.974 --> 00:44:44.821
prepared as a result of mixing a series
00:44:44.821 --> 00:44:47.182
of frozen blocks of fish with other
00:44:47.182 --> 00:44:51.695
ingredients into homogenized mixture
00:44:51.695 --> 00:44:54.618
formed into a dough for purpose of
00:44:54.618 --> 00:44:57.011
extruding it into a filament in the
00:44:57.011 --> 00:45:00.579
cooking belt. In absence of semolina or
00:45:00.579 --> 00:45:03.081
flour that renders the product first
00:45:03.081 --> 00:45:06.738
into a flour contemplated by EN heading
00:45:06.738 --> 00:45:08.388
1902 for further processing into the
00:45:08.388 --> 00:45:10.745
process, it was determined that the fish
00:45:10.745 --> 00:45:13.759
protein could not be classified under
00:45:13.759 --> 00:45:15.826
pasta. Despite having a similar name
00:45:15.826 --> 00:45:17.983
and appearance to the products that fall
00:45:17.983 --> 00:45:20.453
within the scope of this heading. Since
00:45:20.453 --> 00:45:23.522
the legal note 1A to Chapter 19 was
00:45:23.522 --> 00:45:26.781
covered, the next consideration was
00:45:26.781 --> 00:45:30.452
pasta was classified as prepared fish
00:45:30.452 --> 00:45:34.165
under 1604 or as alternatively under
00:45:34.165 --> 00:45:38.407
food prepping. Heading 2106 provide
00:45:38.407 --> 00:45:41.151
food preparation not otherwise specified
00:45:41.151 --> 00:45:42.959
and I can't emphasize this point enough.
00:45:42.959 --> 00:45:46.115
This is heading is the last heading you
00:45:46.115 --> 00:45:47.991
should consult prior classifying
00:45:47.991 --> 00:45:49.926
anything you're looking at application
00:45:49.926 --> 00:45:53.947
of GRI1. When applying the GRI, you
00:45:53.947 --> 00:45:55.844
always need to rule out every and other
00:45:55.844 --> 00:45:59.177
more specific heading in the tariff that
00:45:59.177 --> 00:46:00.597
may be applicable to the products you're
00:46:00.597 --> 00:46:04.077
working with before you consider 2106.
00:46:04.077 --> 00:46:06.580
So in the case of the fish protein pasta
00:46:06.580 --> 00:46:09.199
here in this case, if they did not fall
00:46:09.199 --> 00:46:12.173
within the scope of chapter 16, and
00:46:12.173 --> 00:46:13.775
there was nothing else we can consider,
00:46:13.775 --> 00:46:16.393
then we contact r can look at 21. But
00:46:16.393 --> 00:46:18.598
again, the large percentage of fish
00:46:18.598 --> 00:46:21.411
protein and how it was manufactured was
00:46:21.411 --> 00:46:22.583
critical to the classification
00:46:22.583 --> 00:46:24.786
determination. Citing CORE of
00:46:24.786 --> 00:46:28.625
international trade, determination more
00:46:28.625 --> 00:46:32.134
CORE versus United States was determined
00:46:32.134 --> 00:46:36.845
fish as used in note 1E to Chapter 21 to
00:46:36.845 --> 00:46:40.006
include all parts edible and unedible
00:46:40.006 --> 00:46:42.407
and not merely fillets. The addition
00:46:42.407 --> 00:46:45.043
was made four varieties of pasta with
00:46:45.043 --> 00:46:49.643
result of mixture of frozen chop, and
00:46:49.643 --> 00:46:51.708
other ingredients processed into a dough
00:46:51.708 --> 00:46:53.830
and extruded into filament, steamed, and
00:46:53.830 --> 00:46:56.343
then frozen. Despite the mixture of the
00:46:56.343 --> 00:46:59.734
fish contained, fish content of the
00:46:59.734 --> 00:47:02.476
product weight remained greater for each
00:47:02.476 --> 00:47:05.124
of the varieties. As result, this
00:47:05.124 --> 00:47:07.485
product could not be classified under
00:47:07.485 --> 00:47:08.500
Chapter 1 and classification was
00:47:08.500 --> 00:47:10.585
determined to fall within Chapter 16 and
00:47:10.585 --> 00:47:13.103
support for the decision was made by the
00:47:13.103 --> 00:47:16.276
CIT case and the legal notes, note 2 to
00:47:16.276 --> 00:47:22.126
chapter 16 and precedent established by
00:47:22.126 --> 00:47:25.188
the fish ruling I talked about. While
00:47:25.188 --> 00:47:28.048
the fish protein was processed and not
00:47:28.048 --> 00:47:32.250
readily identifiable to the naked eye,
00:47:32.250 --> 00:47:34.793
it's 40% fish. Demonstrated these
00:47:34.793 --> 00:47:37.081
products were indeed a fish product and
00:47:37.081 --> 00:47:39.174
they were marketed as a fish in a
00:47:39.174 --> 00:47:42.475
pasta-like shape and kept frozen or
00:47:42.475 --> 00:47:44.592
refrigerated before used by the consumer
00:47:44.592 --> 00:47:46.909
and were compromised of weight of more
00:47:46.909 --> 00:47:56.014
than 40% of the Alaska Pollack.
00:47:56.014 --> 00:47:59.166
So we covered a lot today. And I've
00:47:59.166 --> 00:48:01.865
been in the weeds, sort of speak for the
00:48:01.865 --> 00:48:04.258
last few slides. So as we're coming to
00:48:04.258 --> 00:48:05.368
the end of this presentation, I wanted
00:48:05.368 --> 00:48:07.275
to a quick knowledge check of today's
00:48:07.275 --> 00:48:11.141
information. Please feel free to enter
00:48:11.141 --> 00:48:13.592
true or false in the chat box. Here's
00:48:13.592 --> 00:48:15.994
the question. All products that are
00:48:15.994 --> 00:48:20.079
called pasta, spaghetti, gnocchi, ziti,
00:48:20.079 --> 00:48:22.694
et cetera, and marketed as such are
00:48:22.694 --> 00:48:25.444
classified as pasta in heading 1902
00:48:25.444 --> 00:48:28.156
regardless of the ingredients that make
00:48:28.156 --> 00:48:32.161
up the pasta or how they are prepared or
00:48:32.161 --> 00:48:35.091
manufactured. So I'll give everybody
00:48:35.091 --> 00:48:49.954
about 30 seconds to comment. I am
00:48:49.954 --> 00:48:54.177
liking what I'm seeing. I am getting
00:48:54.177 --> 00:48:56.075
false, false, false. For everybody that
00:48:56.075 --> 00:48:59.986
answered false, you are 100% correct.
00:48:59.986 --> 00:49:01.969
When it comes to tariff classification,
00:49:01.969 --> 00:49:04.786
the vegetable or the legume as vegetable
00:49:04.786 --> 00:49:07.213
flour that make up a product would be
00:49:07.213 --> 00:49:09.348
akin to the other flours listed in the
00:49:09.348 --> 00:49:11.956
Explanatory Note such as wheat, maize,
00:49:11.956 --> 00:49:16.399
rice, or potato flour. Listed in the EN
00:49:16.399 --> 00:49:18.600
heading 1902, if comparable
00:49:18.600 --> 00:49:20.294
manufacturing procedures are employed in
00:49:20.294 --> 00:49:26.904
the manufacturing of pasta.
00:49:26.904 --> 00:49:29.060
On this screen, I have some helpful
00:49:29.060 --> 00:49:31.225
questions that we typically ask prior to
00:49:31.225 --> 00:49:33.794
issuing a classification ruling. Please
00:49:33.794 --> 00:49:35.676
note these questions can be used for
00:49:35.676 --> 00:49:37.750
many types of food products that you may
00:49:37.750 --> 00:49:40.833
be working on, not just the pastas that
00:49:40.833 --> 00:49:42.654
were covered in this presentation.
00:49:42.654 --> 00:49:44.223
Having this information in the
00:49:44.223 --> 00:49:47.214
beginning when you decide to submit a
00:49:47.214 --> 00:49:49.962
ruling will help us avoid having to
00:49:49.962 --> 00:49:51.884
issue a return letter for additional
00:49:51.884 --> 00:49:53.535
information as we are strictly
00:49:53.535 --> 00:49:56.028
eliminated to 30 days from the date of
00:49:56.028 --> 00:49:59.006
submission to provide an official
00:49:59.006 --> 00:50:00.691
response to each one of your ruling
00:50:00.691 --> 00:50:04.636
requests.
00:50:04.636 --> 00:50:06.700
Some of those common questions are
00:50:06.700 --> 00:50:09.409
most importantly provide a complete
00:50:09.409 --> 00:50:11.004
ingredients breakdown by weight and
00:50:11.004 --> 00:50:13.352
presented in percentage format and
00:50:13.352 --> 00:50:16.593
ensure it totals 100%. A narrative
00:50:16.593 --> 00:50:18.366
description of the manufacturing product
00:50:18.366 --> 00:50:20.080
and the manufacturing flowchart.
00:50:20.080 --> 00:50:23.008
Hopefully, I stressed in this
00:50:23.008 --> 00:50:24.348
presentation. The first two questions I
00:50:24.348 --> 00:50:26.268
have here are two critical components to
00:50:26.268 --> 00:50:29.462
tariff classification. Of course,
00:50:29.462 --> 00:50:32.676
provide pictures, product labeling, and
00:50:32.676 --> 00:50:36.812
instruction for use, if it's bulk or
00:50:36.812 --> 00:50:46.401
retail sizes and what condition it's
00:50:46.401 --> 00:50:48.030
imported? And if you have protein and
00:50:48.030 --> 00:50:50.715
it's protein-based, provide the dry
00:50:50.715 --> 00:50:52.266
weight of that protein and source of
00:50:52.266 --> 00:50:55.549
that protein for us.
00:50:55.549 --> 00:50:58.251
As I briefly alluded to earlier, our
00:50:58.251 --> 00:51:00.391
office encourages member of the trade
00:51:00.391 --> 00:51:04.032
and importers to consider obtaining a
00:51:04.032 --> 00:51:07.634
binding ruling under 19 C.F.R. part 177.
00:51:07.634 --> 00:51:09.419
Please see the link at the bottom of
00:51:09.419 --> 00:51:12.117
this slide. You could also type in the
00:51:12.117 --> 00:51:15.110
keywords on your preferred search engine
00:51:15.110 --> 00:51:18.469
such as CBP e-ruling and you'll get to
00:51:18.469 --> 00:51:20.698
this link. Again, I ask that in
00:51:20.698 --> 00:51:23.030
addition to filling out the required
00:51:23.030 --> 00:51:24.944
information, you provide as much
00:51:24.944 --> 00:51:26.171
information to the questions as
00:51:26.171 --> 00:51:30.764
possible. As I over viewed on the prior
00:51:30.764 --> 00:51:33.118
slide to avoid any delay in our
00:51:33.118 --> 00:51:39.063
determination in issuance of the ruling.
00:51:39.063 --> 00:51:41.618
Here are some useful links to
00:51:41.618 --> 00:51:44.078
today's presentation. Such as the
00:51:44.078 --> 00:51:47.497
binding rulings program, CROSS, the
00:51:47.497 --> 00:51:48.873
Harmonized Tariff Schedule, informed
00:51:48.873 --> 00:51:51.005
compliance publications, and the world
00:51:51.005 --> 00:51:57.443
Customs organization. So up on this
00:51:57.443 --> 00:51:59.667
slide is my contact information along
00:51:59.667 --> 00:52:02.455
with my national import associate,
00:52:02.455 --> 00:52:05.143
Laureen Tsang. Please do not hesitate
00:52:05.143 --> 00:52:06.755
to reach out to any of us if you have
00:52:06.755 --> 00:52:09.638
any questions. I like to just briefly
00:52:09.638 --> 00:52:12.061
thank the web masters and the host for
00:52:12.061 --> 00:52:16.926
hosting this session for everyone. I
00:52:16.926 --> 00:52:18.584
thank everybody for attending this
00:52:18.584 --> 00:52:21.047
webinar and I hope that you found
00:52:21.047 --> 00:52:24.361
everything informative and helpful. So
00:52:24.361 --> 00:52:26.561
I'm going to go now and look back in the
00:52:26.561 --> 00:52:29.364
chat box. I have about 5 or 6 minutes
00:52:29.364 --> 00:52:31.592
left so I'm going to try to answer as
00:52:31.592 --> 00:52:34.866
many questions as I can. But please, if
00:52:34.866 --> 00:52:38.134
I don't get to your question or you
00:52:38.134 --> 00:52:39.513
couldn't think of anything, please
00:52:39.513 --> 00:52:41.868
don't hesitate to reach out to me at the
00:52:41.868 --> 00:52:47.930
contact information on this slide.
00:52:47.930 --> 00:52:49.121
>> CALENTHIA BANKS: We can call out
00:52:49.121 --> 00:52:51.062
a couple of questions to you?
00:52:51.062 --> 00:52:52.896
>> Yeah, there was a question that
00:52:52.896 --> 00:52:55.504
was related to Customs broker license
00:52:55.504 --> 00:52:57.610
exam question and we are not able to
00:52:57.610 --> 00:52:59.728
comment on that. So we're not going to
00:52:59.728 --> 00:53:01.511
address that one right here, but we have
00:53:01.511 --> 00:53:04.639
a few other ones. One question is rice
00:53:04.639 --> 00:53:07.057
noodles made of rice flour are pasta
00:53:07.057 --> 00:53:09.170
still, right?
00:53:09.170 --> 00:53:13.635
>> TIMOTHY PETRULONIS: Rice noodles
00:53:13.635 --> 00:53:16.078
made of what?
00:53:16.078 --> 00:53:19.758
>> Rice noodle made of rice flour
00:53:19.758 --> 00:53:21.877
are pasta?
00:53:21.877 --> 00:53:22.606
>> TIMOTHY PETRULONIS: I would ask
00:53:22.606 --> 00:53:25.301
for a little more information as I
00:53:25.301 --> 00:53:31.245
allude to in this slide. We need
00:53:31.245 --> 00:53:33.061
complete ingredient break down and
00:53:33.061 --> 00:53:35.135
manufacturing process. So it's not just
00:53:35.135 --> 00:53:37.743
one ingredient such as rice flour that
00:53:37.743 --> 00:53:40.855
makes it a pasta. Does it have the
00:53:40.855 --> 00:53:43.781
character of a pasta? We look at the
00:53:43.781 --> 00:53:45.079
ingredients and manufacturing process.
00:53:45.079 --> 00:53:48.682
So what I would say that it likely may.
00:53:48.682 --> 00:53:52.890
But please reach out to us. And you can
00:53:52.890 --> 00:53:55.460
request a binding ruling and we'll be
00:53:55.460 --> 00:53:58.897
happy to provide that to you via ruling
00:53:58.897 --> 00:54:02.892
once we get more additional information.
00:54:02.892 --> 00:54:06.377
>> Okay, great. Another question to
00:54:06.377 --> 00:54:09.271
confirm, all shelf stable pasta is
00:54:09.271 --> 00:54:13.692
applicable to 1902, frozen would fall
00:54:13.692 --> 00:54:15.387
under 1905?
00:54:15.387 --> 00:54:16.882
>> TIMOTHY PETRULONIS: Well, shelf
00:54:16.882 --> 00:54:21.552
stable pasta and frozen pastas, I would
00:54:21.552 --> 00:54:28.125
say latter about 1905, this provides for
00:54:28.125 --> 00:54:32.996
baker's wears. And just like pasta to
00:54:32.996 --> 00:54:36.225
something fall on to bakers wear. If
00:54:36.225 --> 00:54:38.773
you have a frozen pass Tark it's not
00:54:38.773 --> 00:54:41.330
classified under heading 1905. If you
00:54:41.330 --> 00:54:44.034
have a frozen pasta, just like shelf
00:54:44.034 --> 00:54:47.892
stable pasta, it may be classified under
00:54:47.892 --> 00:54:50.943
heading 1902 under a specific
00:54:50.943 --> 00:54:53.191
subheading, but we first have to
00:54:53.191 --> 00:54:55.205
determine if, like I said earlier, the
00:54:55.205 --> 00:54:58.229
ingredients that compromise the frozen
00:54:58.229 --> 00:55:02.432
pasta, the manufacturing process,
00:55:02.432 --> 00:55:06.849
actually, be qualify for the first four
00:55:06.849 --> 00:55:08.666
digit heading first. And just to
00:55:08.666 --> 00:55:10.511
enumerate on the last example in the
00:55:10.511 --> 00:55:13.226
slide about what's not a pasta about the
00:55:13.226 --> 00:55:16.369
fish protein pastas, all those those
00:55:16.369 --> 00:55:18.696
were frozen or refrigerated, that didn't
00:55:18.696 --> 00:55:22.034
preclude classification in 1902 as a
00:55:22.034 --> 00:55:24.355
pasta. It was the fact that one of the
00:55:24.355 --> 00:55:27.552
main facts is that they were, they
00:55:27.552 --> 00:55:31.369
contained over 20% by weight of a fish
00:55:31.369 --> 00:55:35.726
product, which met a CIT decision which
00:55:35.726 --> 00:55:38.203
also satisfied the legal note which is
00:55:38.203 --> 00:55:40.020
statutory along with the general rules
00:55:40.020 --> 00:55:41.327
of interpretation for classification
00:55:41.327 --> 00:55:44.796
purposes. So like I said earlier, you
00:55:44.796 --> 00:55:48.255
have more questions about that, please
00:55:48.255 --> 00:55:50.221
feel free to reach out to me with more
00:55:50.221 --> 00:55:51.847
information and I can help gear you in
00:55:51.847 --> 00:55:56.949
the more appropriate direction.
00:55:56.949 --> 00:55:58.288
>> I think that's all we have time
00:55:58.288 --> 00:56:03.580
for. Thank you again, everybody. I
00:56:03.580 --> 00:56:05.680
hope this was informative. And please
00:56:05.680 --> 00:56:08.266
feel free to reach out to our team with
00:56:08.266 --> 00:56:10.857
any questions and please do not hesitate
00:56:10.857 --> 00:56:14.726
to submit a binding ruling.
00:56:14.726 --> 00:56:16.019
>> Thank you, Tim. Again, thank
00:56:16.019 --> 00:56:18.717
you, everyone, and we do hope that you
00:56:18.717 --> 00:56:21.557
found today's webinar informative. The
00:56:21.557 --> 00:56:23.241
Continuing Education credit was placed
00:56:23.241 --> 00:56:25.598
in the WebEx chat box and it will be
00:56:25.598 --> 00:56:29.048
emailed to participants within 48 hours.
00:56:29.048 --> 00:56:31.628
Today's webinar will be posted on
00:56:31.628 --> 00:56:34.664
CBP.gov under the trade outreach webinar
00:56:34.664 --> 00:56:36.749
in the coming weeks. We thank you again

00:56:38.910 --> 00:56:38.910
afternoon. Thank you! Bye-bye.