RE: The eligibility for preferential treatment under the United States-Korea Free Trade Agreement (UKFTA) of a nut spread from Korea

U.S. Department of Homeland Security U.S. Customs and Border Protection National Commodity Specialist Division One World Trade Center, Suite 51.201 New York, NY 10007 U.S. Customs and Border Protection N364192 August 26, 2026 CLA-2-20:OT:RR:NC:N5:229 CATEGORY: Trade Agreement Lee Ikjun Lee Bokang Customs 697 Pangyo-ro, Bundang-go, Seognam-si Gyeonggi-do, 13511 South Korea RE: The eligibility for preferential treatment under the United States-Korea Free Trade Agreement (UKFTA) of a nut spread from Korea Dear Mr. Lee: In your request dated August 11, 2026, on behalf of your client, Cored International, you requested a ruling on the eligibility for preferential treatment under the United States-Korea Free Trade Agreement (UKFTA) of an organic nut spread. You have outlined a scenario in which organic roasted peanuts (United States), organic cashew nuts (Vietnam), organic roasted almonds (United States), organic flaxseed (United States), organic walnuts (United States), and organic small black soybeans (Korea) are mixed together in Korea to produce an organic nut spread, referred to as “Organic Super Nuts Spread.” Upon arrival in Korea, the unpacked raw ingredients undergo heat treatment at 130°C to 150°C for 40 to 60 minutes. Following this thermal process, the nut mixture is processed into a smooth spread using a dedicated high-speed grinding machine. The final product then undergoes sorting, inspection, and packaging before being shipped to the United States. The finished nut spread is composed of 32.27 percent organic roasted peanuts, 25.01 percent organic cashew nuts, 20.45 percent organic roasted almonds, 10.45 percent organic flaxseed, 7.27 percent organic walnuts, and 4.55 percent organic small black soybeans. United States-Korea Free Trade Agreement (UKFTA) The requirements for eligibility for preferential tariff treatment under the UKFTA are set forth in General Note (GN) 33 of the Harmonized Tariff Schedule of the United States (HTSUS). GN 33 provides in pertinent part:
(b) For the purposes of this note subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if- (i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both. (ii) the good is produced entirely in the territory of Korea or of the United States, or both, and- (A) each of the non-originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or (iii) The good is produced entirely in the territory of Korea or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above. Since the “Organic Super Nuts Spread” contains non-originating ingredients, it is not considered a good wholly obtained or produced entirely in a UKFTA country under GN 33(b)(i), nor are the products produced exclusively from originating materials per GN 33(b)(ii). Thus, we must determine whether the product qualifies under GN 33(b)(iii). The applicable UKFTA rule of origin under General Note 33(o) for items classified in subheading 2008.19, HTSUS, is: Chapter 20: Chapter rule 1: Fruit, nut and vegetable preparations of headings 2001 through 2008 that have been prepared or preserved by freezing, by packing (including canning) in water, brine or natural juices or by roasting, either dry or in oil (including processing incidental to freezing, packing or roasting) shall be treated as originating only if the fresh good were wholly obtained or produced entirely in the territory of Korea or of the United States, or both. Furthermore, fruit preparations of heading 2008 that contain peaches, pears or apricots, either alone or mixed with other fruits, shall be treated as originating only if the peaches, pears, or apricots were wholly obtained or produced entirely in the territory of Korea or of the United States, or both. […] 3. A change to subheadings 2008.19 through 2008.99 from any other chapter, except as provided for in chapter rule 1 for chapter 20. The process of grinding the nuts into a spread exceeds the operations permitted in Chapter Rule 1 for Chapter 20, GN 33(o). In this case, since the organic cashew nuts (Vietnam) are classified in a Chapter other than Chapter 20, HTSUS, the tariff shift rule is met. Therefore, the product is an eligible good for preferential tariff treatment under the UKFTA. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Christopher Gangaprashad at [email protected]. Sincerely, (for) James P. Forkan Director National Commodity Specialist Division