Toasted Onions Not Classifiable as Dried Vegetables, CBP Says
Toasted onion products from China are properly classified under heading 2005 as prepared or preserved onions instead of under heading 0712 as dried onions due to additional processing beyond simple drying, CBP recently ruled.
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The ruling followed an internal advice request from CBP's Agriculture & Prepared Products Center of Excellence and Expertise and concerned entries at the Port of Chicago between February and December 2020. BCFoods imported "processed onion products" under subheadings 0712.20.2000 for dried onions in the form of powder or flour, dutiable at 29.8%, and 0712.20.4000 for "other" dried onions, dutiable at 21.3%. BCFoods later wrote to CBP that the classification was in error and suggested classification under subheading 2005.99.2000 as onions prepared or preserved otherwise than by vinegar or acetic acid, dutiable at 4.5%.
BCFoods said the manufacturing process includes washing, cutting and spinning to remove surface water prior to oven drying and cooling where the moisture levels are monitored with a target of 7%. The onions are then baked in a toasting oven at between 65 to 90°C with a moisture target of 3.3%. Once cooled, the onions are transferred to final sorting steps including air-cleaning and destoning systems to remove dense foreign material. Final processing includes the removal of metal pieces, optical sorting, hand sorting, and a storage phase. After storage, the products are milled to specific sizes and screened through sieves to ensure specific sizes.
The ruling cites explanatory notes for heading 0712, which state that classification therein is limited to products that have been “dried (including dehydrated, evaporated or freeze-dried) i.e., with their natural water content removed by various processes.”
CBP also cited HQ H289310, in which CBP analyzed the specific machinery utilized in the processing of garlic products. In that case, CBP found that the machinery used was described as "hot air drying" but had an actual "toasting effect" on the garlic. In this case, CBP said that the machinery used in the secondary processing phase was described by the importer as “an oven” used to “to toast/bake the [o]nion” and, based on photo evidence, the onion product in the outlet port photo was visibly browned, meaning that the oven drying constituted "additional processing" beyond merely drying.
CBP ruled that, "since the processed onion products are 'prepared or preserved by processes not provided for in Chapter 7,' as the toasting/baking of the secondary processing phase goes beyond mere drying ...," the processing is considered "'further preparation' beyond the scope of heading 0712."