CIT Finds Cured Beef Jerky Correctly Classified by CBP as 'Cured Beef'
The Court of International Trade sustained CBP’s Harmonized Tariff Schedule classification of plaintiff Link Snacks’ beef jerky, ruling that the product was correctly classified in the HTS subheading for cured beef. Link Snacks had argued that beef jerky is defined by the drying process used in its manufacture, not the curing process. The court was sympathetic to Link Snacks’ argument, but in the end found that it could not go against the plain meaning of the terms in the HTS.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Link Snacks imported the beef jerky from suppliers in New Zealand and Brazil. The product was made with sliced, boneless beef, which is cured with sodium nitrite, then dried, and packaged in airtight bags.
CBP classified the beef jerky under HTS subheading 1602.50.09 (“Other prepared or preserved meat, meat offal or blood: Of bovine animals: Other: Not containing cereals or vegetables: Cured or pickled”), dutiable at 4.5 percent. Link Snacks disputed the decision, arguing the beef jerky should instead be classified in subheading 1602.50.2040 (“Other prepared or preserved meat, meat offal or blood: Of bovine animals: Other: Other: In airtight containers: Other: Other”), dutiable at 1.4 percent.
CBP argued that because Link Snacks’ beef jerky undergoes a curing process, it is “cured” as described in subheading 1602.50.09.
But according to Link Snacks, the drying process differentiates beef jerky from “cured beef.” Beef jerky can be either cured or uncured, the company said. Unlike other cured meats, such as ham, bacon, and hot dogs, it is not highly perishable, and has lower moisture content, it said. The Department of Agriculture seems to agree, said Link Snacks, as it classifies beef jerky as different from cured meats in its regulations.
Despite making “strong arguments,” Link Snacks could not “overcome the otherwise simple and straightforward HTSUS classification for ‘cured’ beef that depends not on dehydration processes or specific measures like [moisture content], but instead on the more general characteristic of whether beef is ‘cured.’” Under General Rule of Interpretation 1, merchandise entirely described by a single heading or subheading should be classified under that heading, CIT said. Link Snacks’ beef jerky is described in CBP’s preferred subheading 1602.50.09, because it is “cured” with sodium nitrite, it said. GRI 1 therefore resolves the classification issue in favor of CBP, and Link Snacks’ beef jerky should be classified as cured beef, the court said.
(Link Snacks, Inc. v. United States, Slip Op. 13-36, dated 03/20/13, Judge Gordon)
(Attorneys: Lizbeth Levinson of Kutak Rock for plaintiff Link Snacks, Inc.; Alexander Vanderweide for defendant U.S. government)