Blooming potted hyacinths in HTSUS 0601.20.90 are grown in Canadian hot houses from Dutch bulbs classified in HTSUS 0601.10.30 and subsequently imported into the U.S. The value of the Dutch bulbs is 15% of the customs value of the potted hyacinths. Can the hyacinths enter the commerce of the U.S. duty free under the North American Free Trade Agreement (NAFTA) and why?
A. Yes, because this is an allowable tariff shift.
B. Yes, because although this is not an allowable tariff shift, by application of the de minimis exception, the blooming potted hyacinths remain NAFTA eligible.
C. No, because HTSUS 0601.20.90 is ineligible for NAFTA Canada.
D. Yes, because the NAFTA’s “Exceptions to Change in Tariff Classification Rules” allows horticultural goods to originate even if grown from non-originating bulbs, seed, cuttings, etc.
E. No, because live plants with soil attached to roots cannot be imported into the U.S., much less benefit from NAFTA.
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The Answer is: D
Citation: The NAFTA’s “Exceptions to Change in Tariff Classification Rules” in HTSUS General Note 12(s)(i) specifically provides for horticultural goods, even if grown from non-originating bulbs, seed, cuttings, etc.
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