HQ 084353: Classification under subheading 9802.00.50, HTSUS, of diced, frozen U.S. chicken which is freeze dried in Canada and returned to the U.S.

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                       HQ 084353

                                     June 2, 1989

            CLA-2 CO:R:C:G   084353 JGH

            CATEGORY:  Classification

            TARIFF NO.:  9802.00.50

            Mr. Alan Litwin
            F.W. Myers & Co., Inc.
            69 Delaware Avenue
            Buffalo, N.Y. 14202

            RE:  Classification under subheading 9802.00.50, HTSUS, of
                 diced, frozen U.S. chicken which is freeze dried in Canada
                 and returned to the U.S.

            Dear Mr. Litwin:

                 Your letter of February 9, 1989, concerns the
            classification of diced, frozen chicken of U.S. origin which is
            sent to Canada for freeze drying and returned to the United
            States.

            FACTS:

                 Diced, frozen chicken from the U.S. is sent to Canada,
            where the water is removed and it is freeze dried.  It is then
            returned to the United States.

            ISSUE:

                 Whether the freeze-dry processing in Canada qualifies as
            an alteration, within the meaning of subheading 9802.00.50,
            HTSUS.

            LAW AND ANALYSIS:

                 Under this provision a duty is assessed upon the value of
            alterations that are made on the articles exported for that
            purpose.  Alterations may result in an advancement in value or
            an improvement in condition.  However, the application of this
            tariff provision is precluded in circumstances where the
            operations performed abroad destroy the identity of the
            articles or create new or commercially different articles.
            Subheading 9802.00.50, HTSUS, treatment also is precluded where
            the exported articles are incomplete for their intended use and
            the foreign processing operation is a necessary step in the
            preparation of manufacture of finished articles.













                                         - 2 -


                In the processing described, the exported diced, frozen
            chicken does not lose its identity as a finished food.
            Therefore, whether in the frozen or freeze-dried state, they
            have essentially the same characteristics.

                Accordingly, the described Canadian processing is
            considered an alteration within the scope of subheading
            9802.00.50, HTSUS.

                Imported freeze dried chicken is classifiable under
            the provision for other meat or poultry in subheading
            0210.90.20, HTSUS, dutiable at 5 percent ad valorem.

            HOLDING:

                Frozen, diced chicken of U.S. origin which is sent to
            Canada for freeze drying and then returned to the United
            States, is classifiable in subheading 9802.00.50, HTSUS, upon
            compliance with Section 10.8, Customs Regulations ( 19 CFR
            10.8).

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division

































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            084353
            6cc:  Area Director, New York Seaport
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