CLA-2 CO:R:C:G 083700 SS
Tariff No. : 1704.90.2005, 1704.90.2010, 1704.90.4000
Mr. Richard Callebaut
One Northbrook Place
5 Revere Drive, Suite 200
Northbrook, IL 60062
RE: Tariff Classification of white chocolate, officially called
confectioner's coating.
Dear Mr. Callebaut:
This is in response to your letter dated February 7, 1989,
addressed to our New York office on behalf of Callebaut of
Belgium, requesting tariff classification for a product described
as white chocolate under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The merchandise under consideration is described as white
chocolate, and is officially called confectioner's coating. It
is imported in blocks of 5 kilograms (11 lbs), and is used in the
confectionery industry for different purposes. The composition
of three varieties of the subject merchandise is stated to be as
follows:
INGREDIENTS W4NV CW2 WNV
Cocoa Butter 30.59 26.61 27.79
Sugar 54.06 48.52 41.01
Full milk Powder 14.92 24.43 30.79
Lecithin & Vanillin 0.43 0.44 0.41
ISSUE:
Whether the subject white chocolate, officially called
confectionery's coating, is properly classifiable under
subheading 1704.90.2005, 1704.90.2010, or 1704.90.4000.
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LAW AND ANALYSIS:
Classification under the HTSUS is governed by the General
Rules of Interpretation (GRI's). GRI 1 provides that
classification is determined first in accordance with the terms
of the headings and any relative Section or Chapter notes.
The subject merchandise is described as white chocolate,
and officially known as confectioner's coating. It is imported
in 5 kilogram blocks and is used by the confectionery industry
for different purposes. In a subsequent letter dated May 2,
1989, you state that since January 1, the local Customs offices
in San Francisco and New York have classified the subject
merchandise under subheading "1704.90.20.05.9 or 10.20" (we
assume you mean subheading 1704.90.20059 or 1704.90.2010). You
claim that among the reasons for such a classification
(1704.90.2005) are that the subject merchandise is sold to
housewives in the 5 kilogram blocks, and that the same
merchandise can be delivered in any size (2 ounce bars, half
pound bars, 1 pound bars and 11 pounds bars), without changing
the original composition, taste, physical, chemical or biological
conditions.
Subheading 1704.90.2005, HTSUS, provides for other sugar
confectionery (including white chocolate), not containing cocoa,
put up for retail sale. Subheading 1704.90.2010, HTSUS, provides
for other sugar confectionery (including white chocolate), not
containing cocoa, other than put up for retail sale. Subheading
1704.90.4000, HTSUS, provides for sugar confectionery other than
confections or sweetmeats ready for consumption, articles of milk
or cream.
For purposes of tariff classification, the merchandise in
issue in neither ready for consumption nor put up for retail
sale. The facts state that the white chocolate in issue is used
in the confectionery industry for many purposes. The obvious
implications of such a statement is that the white chocolate is
not ready for consumption because it will be put to a variety of
uses by the confectionery industry. Also, despite your claim, it
is unlikely that the average "housewife" will buy white chocolate
in 5 kilogram blocks. Further, the fact that the subject white
chocolate can be delivered in the sizes previously described so
as to be ready for home consumption or retail sale is not
controlling. Principles of tariff classification dictate that
merchandise is classifiable in the form in which it is imported.
-3-
However, whether the subject merchandise is ready for
retail sale or consumption is not determinative as to the proper
classification in the instant case. This issue was addressed
only in response to the claims submitted in the ruling request.
The subject merchandise contains milk ranging in amounts from
14.92 percent to 30.79 percent. Based on this composition, the
subject merchandise is specifically described under subheading
1704.90.4000, HTSUS. Further, classification under this
subheading is consistent with the intent of the quota
restrictions of the U.S. Department of Agriculture.
HOLDING:
In view if the foregoing, the subject merchandise, white
chocolate officially called confectioner's coating, is properly
classifiable under subheading 1704.90.4000, HTSUS, subject to
quota restrictions of subheading 9904.10.60.
Sincerely,
John Durant, Director
Commercial Ruling Division