CLA-2-17:S:N:N1:232-869626
Mr. Joseph E. Sandler
Arent Fox Kintner Plotkin & Kahn
1050 Connecticut Avenue, NW
Washington, DC 20036-5339
RE: The tariff classification of four drink mixes containing
sugar from Canada.
Dear Mr. Sandler:
In your letter dated December 9, 1991, on behalf of Bowes
Co., Ltd., 75 Vickers Road, Etobicoke M9B6B6 Ontario, Canada, you
requested a tariff classification ruling.
Your query concerns the classification and quota status of
four drink mixes containing sugar to be exported from Canada to
the United States. The merchandise will be imported in finished
form for sale both to retail consumers and to institutional
customers such as restaurants, hotels, catering firms and public
facilities including hospitals, prisons and similar institutions.
The first item is a powdered drink mix, marketed as flavor
crystals, to be imported in several flavors and in two different
types and sizes of packaging, both of which are intended for
institutional customers. No retail packaging of the product will
be imported. The composition of the flavor crystals, by dry
weight, for all flavors, is 91.3 percent sugar, 7 percent citric
acid, 0.51 percent flavoring, 0.09 percent color, 0.66 percent
trisodium citrate, 0.34 percent ascorbic acid and 0.10 percent
silicon dioxide. The second item is an iced tea mix consisting
of 89 percent sugar, 5 percent dextrose, 2.5 percent acid, 1
percent instant tea and 2.5 percent other ingredient(s). This
would be imported in three types of packaging, one of which is
designed for retail and institutional customers, the other two
being for institutional customers only. The third item is a hot
chocolate powder dry mix composed of 51 percent sugar, 37
percent dairy ingredients, 11 percent cocoa and 1 percent other
ingredient(s). This too, would be imported in three types of
packaging, one of which is designed for both retail and
institutional customers, while the other two types are for
institutional customers only. Finally, there is an instant
chocolate drink powder dry mix, which has two formulations.
Formula #1 consists of 84 percent sugar, 8 percent cocoa, 6
percent starch and 2 percent other ingredient(s). Formula #2
consists of 84 percent sugar, 15 percent cocoa and 1 percent
other ingredient(s). Both formulations would be imported in
three types of packaging, two of which are intended for both
retail and institutional customers, while the third is for retail
customers only.
The applicable subheading for the flavor crystals will be
1701.91.4000, Harmonized Tariff Schedule of the United States
(HTS), which provides for cane or beet sugar and chemically pure
sucrose in solid form...other...containing added flavoring matter
whether or not containing added coloring. The duty rate will be
6 percent ad valorem.
The applicable subheading for the ice tea mix will be
2101.20.4060, HTS, which provides for extracts, essences and
concentrates, of tea or mate, and preparations with a basis of
these extracts, essences or concentrates or with a basis of tea
or mate...other...other...other ...containing over 10 percent by
weight of sugar. The duty rate will be 10 percent ad valorem.
This item is also subject to the quota restrictions of
subheading 9904.60.60.
The applicable subheading for Formula #1 of the instant
chocolate drink powder mix will be 1806.90.0060, HTS, which
provides for chocolate and other food preparations containing
cocoa...other...subject to quotas established pursuant to section
22 of the Agricultural Adjustment Act, as amended...provided for
in subheading 9904.60.60. The rate of duty will be 7 percent ad
valorem.
Goods classifiable under subheading 1701.91.4000, HTS, which
have originated in the territory of Canada, will be entitled to a
3.6 percent rate of duty under the United States-Canada Free
Trade Agreement (FTA) upon compliance with all applicable
regulations. Likewise, goods classifiable under subheading
2101.20.4060, HTS, will be entitled to a 2 percent duty rate, and
goods classifiable under subheading 1806.90.0060, HTS, will be
entitled to a 4.2 percent duty rate.
Your inquiry does not provide enough information for us to
give a classification ruling on the hot chocolate powder dry mix
or on Formula #2 of the instant chocolate drink powder mix. Your
request for a classification ruling for the hot chocolate powder
dry mix should identify the dairy ingredients, their percentages
by weight and the percentage by weight of butterfat. Also,
indicate the specific sizes of packages that are intended for the
retail consumer, as opposed to the institutional consumer, for
the style of packaging described as "rigid cardboard, plastic or
metal packages with lid". If the same size packaging is sold for
both retail and institutional use, will the product labels be
identical? For Formula #2 of the instant chocolate drink powder
mix, please specify what the 1 percent "other ingredient(s)"
consists of.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport