Chemically Preserved Tomatoes for Preserved Salsa Not Subject to Mexico Tomatoes Agreement
Roma tomatoes imported from Mexico and used by Simply Fresh to make preserved salsa products are exempt from the antidumping duty suspension agreement and the suspended AD duty investigation on fresh tomatoes from Mexico (A-201-820), the Commerce Department said in a Jan. 12 scope ruling. The tomatoes meet the requirements of an exemption in the scope for tomatoes for processing, the agency said.
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Though the scope does not define processing, the 2019 suspension agreement on Mexico tomatoes says processing includes processes that “include preserving by any commercial process, such as canning, dehydrating, drying, or the addition of chemical substances, or converting the tomato product into juices, sauces, or purees.” It also says that, “mere cutting or dicing of fresh tomatoes for later inclusion in a salad bar or fresh salsa bar is not sufficient ‘processing’” for the exemption to apply.
On their way to becoming salsa, Simply Fresh’s tomatoes are washed, diced and pulverized and blended with other vegetables, seasoning blends and acidifiers. They are also “chemically preserved through the use of sodium benzoate, potassium sorbate, calcium chloride, calcium lactate and other fermented substances depending on the salsa being manufactured” before they are “optionally ground” and “packaged in cups and jugs.”
That, combined with other aspects of how Simply Fresh procures its tomatoes, is enough for the processing exemption to apply, Commerce said. The International Trade Commission report from the original 1996 AD duty investigation said tomatoes for processing have physical characteristics that make them more suitable for processing, and are generally harvested mechanically and not suitable for sale as fresh. An ITC report issued in 2019 notes that fresh market tomatoes are harvested green.
Both of these qualities apply to Simply Fresh’s tomatoes, which are mechanically harvested and picked ripened, which make them less suitable for the fresh tomato market due to a decreased shelf life.
“Simply Fresh’s Roma tomatoes undergo an extensive commercial process and eventually are included in salsa products,” Commerce said. “The commercial process includes preservation through the use of chemical additives and other processes. Some tomatoes also are ground into a slurry during the manufacturing process. Lastly, Simply Fresh’s standards and sourcing practices share some aspects with the tomatoes-for-processing industry practices,” as described in the ITC reports.
“Collectively, the evidence establishes that Simply Fresh’s imported Roma tomatoes from Mexico meet the scope exclusion for tomatoes for processing,” Commerce said. “Although Simply Fresh’s imported Roma tomatoes meet the requirements for the scope exclusion, we emphasize that Simply Fresh must follow the import requirements for tomatoes for processing described in Appendix F of the 2019 Agreement.”