Mushrooms

Published CBP guidance; operative status and applicability must be assessed from the retained publisher edition.

What Every Member of the
Trade Community Should Know About:
Mushrooms

AN INFORMED COMPLIANCE PUBLICATION
MARCH 2008

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March 2008

NOTICE:
This publication is intended to provide guidance and information to the trade community. It
reflects the position on or interpretation of the applicable laws or regulations by U.S.
Customs and Border Protection (CBP) as of the date of publication, which is shown on the
front cover. It does not in any way replace or supersede those laws or regulations. Only the
latest official version of the laws or regulations is authoritative.

Publication History
First Published: October 1996
Revised March 2001
Revised March 2004
Revised March 2008

PRINTING NOTE:
This publication was designed for electronic distribution via the CBP website
(http://www.cbp.gov/) and is being distributed in a variety of formats. It was originally set up
in Microsoft Word97
®
. Pagination and margins in downloaded versions may vary depending
upon which word processor or printer you use. If you wish to maintain the original settings,
you may wish to download the .pdf version, which can then be printed using the freely
available Adobe Acrobat Reader
®
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Mushrooms
March 2008

PREFACE

On December 8, 1993, Title VI of the North American Free Trade Agreement Implementation
Act (Pub. L. 103-182, 107 Stat. 2057), also known as the Customs Modernization or “Mod” Act,
became effective. These provisions amended many sections of the Tariff Act of 1930 and
related laws.

Two new concepts that emerge from the Mod Act are “informed compliance” and “shared
responsibility,” which are premised on the idea that in order to maximize voluntary compliance
with laws and regulations of U.S. Customs and Border Protection, the trade community needs to
be clearly and completely informed of its legal obligations. Accordingly, the Mod Act imposes a
greater obligation on CBP to provide the public with improved information concerning the trade
community's rights and responsibilities under customs regulations and related laws. In addition,
both the trade and U.S. Customs and Border Protection share responsibility for carrying out
these requirements. For example, under Section 484 of the Tariff Act, as amended (19 U.S.C.
1484), the importer of record is responsible for using reasonable care to enter, classify and
determine the value of imported merchandise and to provide any other information necessary to
enable U.S. Customs and Border Protection to properly assess duties, collect accurate
statistics, and determine whether other applicable legal requirements, if any, have been met.
CBP is then responsible for fixing the final classification and value of the merchandise. An
importer of record’s failure to exercise reasonable care could delay release of the merchandise
and, in some cases, could result in the imposition of penalties.

Regulations and Rulings (RR) of the Office of International Trade has been given a major role in
meeting the informed compliance responsibilities of U.S. Customs and Border Protection. In
order to provide information to the public, CBP has issued a series of informed compliance
publications on new or revised requirements, regulations or procedures, and a variety of
classification and valuation issues.

This publication, prepared by the National Commodity Specialist Division of Regulations and
Rulings is entitled "Mushrooms”. It provides guidance regarding the classification of these items.
We sincerely hope that this material, together with seminars and increased access to rulings of
U.S. Customs and Border Protection, will help the trade community to improve voluntary
compliance with customs laws and to understand the relevant administrative processes.

The material in this publication is provided for general information purposes only. Because
many complicated factors can be involved in customs issues, an importer may wish to obtain a
ruling under Regulations of U.S. Customs and Border Protection, 19 C.F.R. Part 177, or to
obtain advice from an expert who specializes in customs matters, for example, a licensed
customs broker, attorney or consultant.

Comments and suggestions are welcomed and should be addressed to the Executive Director,
Regulations and Rulings, Office of International Trade, U.S. Customs and Border Protection,
1300 Pennsylvania Avenue, NW, (Mint Annex), Washington, D.C. 20229.

Sandra L. Bell
Executive Director, Regulations and Rulings
Office of International Trade

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TYPES OF MUSHROOMS.......................................................................... 7
CLASSIFICATION....................................................................................... 7
COUNTRY OF ORIGIN MARKING............................................................. 9
INVOICING................................................................................................ 10
IMPORTS................................................................................................... 10
ANTIDUMPING.......................................................................................... 10
MUSHROOM IMPORT ASSESSMENT FEE............................................. 11
REFERENCES........................................................................................... 12
ADDITIONAL INFORMATION................................................................... 14
................................................................................................................ 14 The Internet
................................................................................................. 14 Customs Regulations
........................................................................................................ 14 Customs Bulletin
................................................................................. 15 Importing Into the United States
............................................................................. 15 Informed Compliance Publications
...................................................................................................... 16 Value Publications
................................................................................. 17 “Your Comments are Important”

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This publication discusses the tariff classification and other issues related to the
importation of mushrooms.

TYPES OF MUSHROOMS

There are more than 38,000 kinds of mushrooms in the world, and they vary
considerably in color, size and shape. Only about 25 of a possible 2000 edible
mushroom species are cultivated as human food. The main parts of a mushroom
include the stem and cap (See diagram). Stem sizes vary from short and thick to long
and thin. The cap's texture can be smooth, pitted, honeycombed or ruffled. Flavors
range from bland to rich, to nutty and earthy. The cultivated Agaricus (common button)
mushroom, having a mild, earthy flavor, with caps that range in size from 1/2 to 3 inches
in diameter and either a white or tan color, is commonly found in most grocery and
supermarket stores.

Specialty or exotic varieties of mushrooms are commercially grown in the United
States as well as imported. Specialty mushrooms include Shiitake (Lentinus edodes),
Miitake (Grifola frondosa), Nameko (Pholiota nameko), Enoki (Flalmmulina velutipes),
Pom Pom (Hericium erinaceus), Oyster (Pleurotus spp.), Portabella, Crimini (Agaricus
Bisporus), and others. Production has steadily increased over the past several years.
Shiitake, Portabella, and Oyster are the most popular, followed by the Enoki, Maiitake,
Nameko and Pom Pom.

Fresh mushrooms are imported in bulk, and in a variety of retail sizes. Canned
mushrooms are available in several forms including whole, chopped, sliced and caps
only. Some mushrooms, usually the imported varieties, are available dried whole or in
slices, bits or pieces, and are sometimes packed in a marinade.

CLASSIFICATION

The 2008 Harmonized Tariff Schedule of the United States (HTSUS) provides for
mushrooms as follows:

Tariff Description HTSUS subheading

Fresh or chilled
of the genus
Agaricus 0709.51.0100*
other [than Agaricus] 0709.59.9000*

Frozen, uncooked or cooked by steaming
or boiling in water

0710.80.2000

Provisionally preserved by e.g., sulfur
dioxide gas, in brine, in sulfur water or in
other preservative solutions, but unsuitable
in that state for immediate consumption

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Mushrooms of the genus Agaricus 0711.51.0000**
Other:
Mushrooms 0711.59.1000

Dried, whole, cut, sliced, broken or in
powder, but not further prepared:

Mushrooms of the genus Agaricus:
Air dried or sun dried 0712.31.1000
Other 0712.31.2000

Other:
Mushrooms:
Air dried or sun dried 0712.39.1000
Other 0712.39.2000

Prepared or preserved by vinegar or acetic
acid

2001.90.3800

Mushrooms... prepared or preserved
otherwise than by vinegar or acetic acid:

Mushrooms of the genus Agaricus

In containers each holding not
more than 255g: 2003.10.0127**
Whole (including buttons) 2003.10.0131**
Sliced 2003.10.0137**
Other

In containers each holding more
than 255g:

2003.10.0143**
Whole (including buttons) 2003.10.0147**
Sliced 2003.10.0153**
Other

Other 2003.90.0010
Straw mushrooms 2003.90.0090
Other

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* Fresh mushrooms are subject to a mushroom import assessment fee. (See Mushroom Import
Assessment Fee, below)

** Subject to antidumping duties from certain countries.

.

The tariff classification of “canned marinated mushrooms” and the coverage of
subheading 2003.10, HTSUS, the provision for mushrooms prepared or preserved
otherwise than by vinegar or acetic acid, was addressed in Headquarters Ruling Letter
(HRL) 964374, dated October 17, 2000. The HTSUS, and the Harmonized Commodity
Description and Coding System Explanatory Notes (ENs) do not define what constitutes
"prepared or preserved by vinegar or acetic acid" (which is found in vinegar). However,
under the Tariff Schedules of the United States (TSUS), the predecessor to the HTSUS,
Customs and Border Protection’s (CBP) position as to the minimum amount of acetic
acid necessary to determine whether a vegetable is prepared or preserved by vinegar
or acetic acid was outlined in HRL 069121, dated May 20, 1983 (IA 247/80). That
decision held that a product required a "minimum of 0.5 per cent acetic acid (subject to
allowable tolerances) in the equilibrated product" to be considered as prepared or
preserved by vinegar or acetic acid. That position has continued under the HTSUS.
(See also HRL Letters, 085838 dated December 21, 1989, 952738 dated January 27,
1993, 953518 dated June 24, 1993, 956850 dated March 22, 1996, 959313 dated
February 20, 1997, 959314 dated February 20, 1997, 959361 dated April 17, 1997 and
957041 dated November 11, 1998, for similar rulings relating to the classification of
vegetables put up or preserved in vinegar or acetic acid.)

The mushrooms falling in chapter 20, HTSUS, are usually prepared and
preserved by washing, blanching, slicing, canning and/or by the addition of water,
vinegar, acetic acid, sugar, yeast extracts, MSG, and/or natural flavoring. Where
vinegar or acetic acid is indicated to be one of the ingredients in prepared mushrooms,
CBP may require laboratory analysis in order to determine whether classification in
heading 2001 or 2003 is appropriate.

COUNTRY OF ORIGIN MARKING

Pursuant to section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304)
and Part 134 of the CBP Regulations (19 CFR Part 134), all imported articles must be
marked in a conspicuous place as legibly, indelibly, and permanently as the nature of
the articles (or container) will permit in such manner as to indicate to an ultimate
consumer in the United States, the English name of the country of origin of the article.

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Section 1970(b) of the Omnibus Trade and Competitiveness Act of 1988, Pub. L.
No. 100-418, provides:

Imported preserved mushrooms shall not be considered to be in
compliance with section 304 of the Tariff Act of 1930 (19 U.S.C. Part
1304) or any other law relating to the marking of imported articles unless
the containers thereof indicate in English the country in which the
mushrooms were grown.

Subsequent packing or preserving (i.e. canning) is not sufficient to change the
country of origin. The term “product of...” may only be used to refer to the country in
which the mushrooms were grown. (See HRL 734281, dated February 13, 1992)
Acceptable country of origin marking includes “grown in...” and “product of....”
However, the “product of...” phrase cannot be used when referring to the country in
which the mushrooms have been merely packed or canned.

INVOICING

It is important to have a detailed description of the imported product on the
invoice to insure proper classification. Mushrooms should be described as “fresh,”
“chilled,” “frozen,” etc., as well as the genus, species, form (whole, buttons, sliced, etc.),
type of packing, country of origin (see “country of Origin Marking” above), etc.

IMPORTS

Mushrooms are imported from as many as fifty different countries. The majority
of the imports are from Canada and China. For the year 2007, the value of imported
mushrooms (excluding those prepared or preserved by vinegar or acetic acid, for which
no specific data for mushrooms is available) totaled more than $289,637,808.. Fresh
or chilled mushrooms of the genus Agaricus
are the largest type imported. The value of
these mushrooms, classified in subheading 0709.51.0100, HTSUS, was $89,249,793 in
2007.

ANTIDUMPING

The Department of Commerce publishes antidumping orders in the Federal
Register concerning preserved mushrooms imported from Chile, China, India, and
Indonesia.

Antidumping case numbers Country

A-337-804 Chile
A-533-813 India
A-560-802 Indonesia
A-570-851 China

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The mushrooms covered by these orders are preserved mushrooms of the
species Agaricus bisporus and Agaricus bitorquis, whether imported whole, sliced,
diced, or as stems and pieces. “Preserved mushrooms,” for purposes of the
antidumping orders, are mushrooms that have been prepared or preserved by cleaning,
blanching, and sometimes cutting or slicing, then packed and heated in containers such
as cans or glass jars, in a liquid medium such as water, brine, butter or butter sauce.
Included within the scope of the orders are “brined” mushrooms, i.e., mushrooms that
are pre-salted and packed in a heavy salt solution to provisionally preserve them for
further processing.

Excluded from the scope of the orders are:
• all other species of mushroom, including straw mushrooms,
• fresh and chilled mushrooms, including “refrigerated” or “quick blanched”
mushrooms,
• dried mushrooms,
• frozen mushrooms, and
• “marinated,” “acidified,” or “pickled” mushrooms.

The antidumping orders define “marinated,” “acidified,” or “pickled” mushrooms as
prepared or preserved by means of vinegar or acetic acid, but which may contain oil or
other additives. This exclusion applies only to mushrooms with an acetic acid content of
0.5 percent or more. (Department of Commerce scope ruling dated June 19, 2000.
See also HRL 963835 dated October 17, 2000 (IA 00/04) and HRL 964374, dated
October 17, 2000). In Tak Fat Trading Company, et. al., v. United States, 396 F.3d
1378, 1386 (Fed Cir. 2005), the Court of Appeals for the Federal Circuit affirmed the
Department of Commerce's utilization of this standard for exclusion from the
antidumping orders.

Mushrooms subject to these orders are classifiable under subheadings
0711.51.0000, 2003.10.0127, 2003.10.0131, 2003.10.0137, 2003.10.0143,
2003.10.0147, and 2003.10.0153 of the Harmonized Tariff Schedule of the United
States (HTSUS).

The importing public and other interested parties should contact the International
Trade Administration, at the U.S. Department of Commerce for information on
antidumping rates of duty and case numbers.

MUSHROOM IMPORT ASSESSMENT FEE

In March 1993, the Agricultural Marketing Service (AMS) of the United States
Department of Agriculture (USDA) entered into an agreement with CBP whereby CBP
is required to collect an import assessment fee, as part of the entry process, for all
varieties of fresh mushrooms entered or withdrawn from warehouse, under subheadings
0709.51.0100 or 0709.59.9000, HTSUS.

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The Mushroom Council, established by the Mushroom Promotion, Research, and
Consumer Information Order (7 C.F.R. 1209), has determined that the mushroom fee
will be $0.01102300 per kilogram for goods classified under subheadings 0709.51.0100
and 0709.59.9000, HTSUS, and entered, or withdrawn from warehouse, for
consumption effective January 1, 2008. The Mushroom Promotion, Research, and
Consumer Information Act of 1990 (7 U.S.C. 6101-6112), provides the authority for the
Mushroom Council to periodically increase or decrease the rate of assessment.

REFERENCES

Arora, D., Mushrooms Demystified, 2d ed. (Berkley, CA: Ten Speed Press) 1986.

Charles, V.K., Some Common Mushrooms And How To Know Them, United States
Department of Agriculture, No. 143, Washington D.C., March 1931.

Coyle, L.P. Jr., ed. Wo
rld Encyclopedia of Food, Facts on File, New York, N.Y., 1982,

Dickinson, C. and John Lucas, ed. VNR Co
lor Dictionary of Mushrooms, (London: Van
Nostrand Reingold Company, Orbis Publishing Limited) 1982.

Dickinson, C. and John Lucas, The Encyclopedia of Mushro
oms, (New York: G.P.
Putnam's Sons, London: Orbis Publishing Limited) 1979.

Fanelli, A. and Tosco, U., Color Treasury of Mushrooms & Toadstools, (London,
Crescent books, Orbis Publishing Limited) 1972.

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Gonzales, A., “Many awaiting the next Portabella,” The Packer, January 1, 1996, p. 6C.

Gonzales, A., “Groups relying on others to spread word,” The Packer, January 1, 1996,
p. 10C.

Luth, B.S., Woodruff, J.G., Commercial Vegetable Processing, (Westport, Connecticut:
The AVI Publishing Company) 1975.

Molin, J., “Specialty Mushrooms: Yesterday, Today, & Tomorrow,” Mushroom News,
February 1995.

Mushroom Council, “The Complete Story,” Mushroom Council, Roseville, California,
1995.

United States International Trade Commission, Harmonized Tariff Schedule of the
United States (2008), Washington D.C., 2008.

U.S. Imports of Merchandise, International Harmonized System Commodity
Classification U.S. Department of Commerce, Bureau of the Census, Data Services
Division, Washington D.C.

www.ams.usda.gov/fv/rpmushroom.html, 2008

www.mushroomcouncil.org, 2008

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ADDITIONAL INFORMATION

The Internet

The home page of U.S. Customs and Border Protection on the Internet’s World Wide
Web, provides the trade community with current, relevant information regarding CBP
operations and items of special interest. The site posts information -- which includes
proposed regulations, news releases, publications and notices, etc. -- that can be
searched, read on-line, printed or downloaded to your personal computer. The web site
was established as a trade-friendly mechanism to assist the importing and exporting
community. The web site also links to the home pages of many other agencies whose
importing or exporting regulations that U.S. Customs and Border Protection helps to
enforce. The web site also contains a wealth of information of interest to a broader
public than the trade community. For instance, the “Know Before You Go” publication
and traveler awareness campaign is designed to help educate international travelers.

The web address of U.S. Customs and Border Protection is http://www.cbp.gov

Customs Regulations

The current edition of Customs and Border Protection Regulations of the United States
is a loose-leaf, subscription publication available from the Superintendent of
Documents, U.S. Government Printing Office, Washington, DC 20402; telephone (202)
512-1800. A bound edition of Title 19, Code of Federal Regulations is also available for
sale from the same address. All proposed and final regulations are published in the
Federal Register, which is published daily by the Office of the Federal Register, National
Archives and Records Administration, and distributed by the Superintendent of
Documents. Information about on-line access to the Federal Register may be obtained
by calling (202) 512-1530 between 7 a.m. and 5 p.m. Eastern time. These notices are
also published in the weekly Customs Bulletin described below.

Customs Bulletin

The Customs Bulletin and Decisions (“Customs Bulletin”) is a weekly publication that
contains decisions, rulings, regulatory proposals, notices and other information of
interest to the trade community. It also contains decisions issued by the U.S. Court of
International Trade, as well as customs-related decisions of the U.S. Court of Appeals
for the Federal Circuit. Each year, the Government Printing Office publishes bound
volumes of the Customs Bulletin. Subscriptions may be purchased from the
Superintendent of Documents at the address and phone number listed above.

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Importing Into the United States

This publication provides an overview of the importing process and contains general
information about import requirements. The current edition of Importing Into the United
States contains much new and revised material brought about pursuant to the Customs
Modernization Act (“Mod Act”). The Mod Act has fundamentally altered the relationship
between importers and U.S. Customs and Border Protection by shifting to the importer
the legal responsibility for declaring the value, classification, and rate of duty applicable
to entered merchandise.

The current edition contains a section entitled "Informed Compliance." A key component
of informed compliance is the shared responsibility between U.S. Customs and Border
Protection and the import community, wherein CBP communicates its requirements to
the importer, and the importer, in turn, uses reasonable care to assure that CBP is
provided accurate and timely data pertaining to his or her importation.

Single copies may be obtained from local offices of U.S. Customs and Border
Protection, or from the Office of Public Affairs, U.S. Customs and Border Protection,
1300 Pennsylvania Avenue NW, Washington, DC 20229. An on-line version is
available at the CBP web site. Importing Into the United States is also available for
sale, in single copies or bulk orders, from the Superintendent of Documents by calling
(202) 512-1800, or by mail from the Superintendent of Documents, Government Printing
Office, P.O. Box 371954, Pittsburgh, PA 15250-7054.

Informed Compliance Publications

U.S. Customs and Border Protection has prepared a number of Informed Compliance
publications in the “What Every Member of the Trade Community Should Know
About:...” series. Check the Internet web site http://www.cbp.gov for current
publications.

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Value Publications

Customs Valuation under the Trade Agreements Act of 1979 is a 96-page book
containing a detailed narrative description of the customs valuation system, the customs
valuation title of the Trade Agreements Act (§402 of the Tariff Act of 1930, as amended
by the Trade Agreements Act of 1979 (19 U.S.C. §1401a)), the Statement of
Administrative Action which was sent to the U.S. Congress in conjunction with the TAA,
regulations (19 C.F.R. §§152.000-152.108) implementing the valuation system (a few
sections of the regulations have been amended subsequent to the publication of the
book) and questions and answers concerning the valuation system.

Customs Valuation Encyclopedia (with updates) is comprised of relevant statutory
provisions, CBP Regulations implementing the statute, portions of the Customs
Valuation Code, judicial precedent, and administrative rulings involving application of
valuation law. A copy may be purchased for a nominal charge from the Superintendent
of Documents, Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-
7054. This publication is also available on the Internet web site of U.S. Customs and
Border Protection.

The information provided in this publication is for general information
purposes only. Recognizing that many complicated factors may be
involved in customs issues, an importer may wish to obtain a ruling under
CBP Regulations, 19 C.F.R. Part 177, or obtain advice from an expert
(such as a licensed Customs Broker, attorney or consultant) who
specializes in customs matters. Reliance solely on the general
information in this pamphlet may not be considered reasonable care.

Additional information may also be obtained from U.S. Customs and Border Protection
ports of entry. Please consult your telephone directory for an office near you. The
listing will be found under U.S. Government, Department of Homeland Security.

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“Your Comments are Important”

The Small Business and Regulatory Enforcement Ombudsman and 10 regional
Fairness Boards were established to receive comments from small businesses about
Federal agency enforcement activities and rate each agency’s responsiveness to small
business. If you wish to comment on the enforcement actions of U.S. Customs and
Border Protection, call 1-888-REG-FAIR (1-888-734-3247).

REPORT SMUGGLING 1-800-BE-ALERT OR 1-800-NO-DROGA

Visit our Internet web site: http://www.cbp.gov

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