HQ 952453: Concentrated Apple Juice

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 952453

                        December 17, 1992

CLA-2 CO:R:C:F  952453  ALS

CATEGORY:  Classification

TARIFF NO.: 2009.70.0020

Mr. Herbert E. Harris II
Harris and Ellsworth
2600 Virginia Ave., NW
Suite 1113
Washington, DC 20037-1905

RE: Concentrated Apple Juice

Dear Mr. Harris:

     This is in reference to your inquiry regarding concentrated
apple juice of East European origin which is processed in a member
country of the European Economic Community (EEC) and subsequently
shipped to the United States.  You ask us to confirm that the
processed apple juice concentrate remains a product of the
country(ies) where the apple juice concentrate originated.

FACTS:

     The product is concentrated apple juice which is produced in
East European countries, e.g. Poland and Hungary, from apples grown
in those countries, it is sent to an EEC country where it is
reconstituted and mixed.  No products of EEC origin are added to
the apple juice as part of the mixing process.  Subsequent thereto,
the product is dehydrated and packaged for export to the United
States.

ISSUE:

     What is the classification of the concentrated apple juice
and does the processing in an EEC country without the addition of
any EEC product constitute a substantial transformation altering
the country of origin of the product?

                              - 2 -

LAW AND ANALYSIS:

     Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is governed by
the General Rules of Interpretation (GRI's) taken in order.  
GRI 1 provides that the classification is determined first in
accordance with the terms of the headings and any relative section
and chapter notes.  If GRI 1 fails to classify the goods and if the
heading and legal notes do not otherwise require, the remaining
GRI's are applied taken in order.

     The product under consideration is concentrated apple juice
which is not frozen.  In considering the classification of the
product, we noted that the HTSUSA specifically provides for
concentrated apple juice in subheading 2009.70.00, HTSUSA.  A
breakout is provided thereunder for frozen concentrate and a second
breakout is provided for other concentrate.  Since the product is
not frozen, it is clear that it should be classified under the
latter breakout.

     A question remains as to the country of origin of the product. 
In considering this matter we noted that the apple juice originates
in East European countries such as Poland and Hungary, i.e., it is
produced from apples grown in those countries which are processed
and the juice initially concentrated in those countries.  These
concentrated apple juices are then shipped to an European Economic
Community (EEC) country where they are reconstituted, mixed and
then dehydrated in evaporators, packaged and exported to the U.S. 
The processing in the EEC consists of adding and removing water and
mixing the concentrated juices originating in various East European
countries.  Save for water which is added then removed from the
concentrate, no products from the EEC countries are added to the
mix.  

     Since the processing does not alter the nature of the product
and nothing is added to the mix in the EEC, we have concluded that
the EEC processing does not result in a substantial transformation
of the product.  Accordingly, the imported concentrated apple juice
remains a product of the East European country or countries from
which the concentrated apple juice(s) originated.

HOLDING:

     Concentrated apple juice which originates in eastern European
countries, is shipped to an EEC country where it is  - 3 -

rehydrated, mixed and then reconcentrated prior to packaging and
shipment to the U.S. is considered a product of the country or
countries where the juices originated, is classifiable in
subheading 2009.70.0020, HTSUSA, and is subject to a free rate of
duty.

                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division