CLA-2 CO:R:C:F 950917 JGH

Roger L. Hiatt, Esq.
Miller & Steuart
2320 Commerce Tower
911 Main Street
Kansas City, Missouri 64105

RE: Classification of Alactamil, infant formula

Dear Mr. Hiatt:

Your inquiry of December 9, 1991, concerns the tariff classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of Alactamil, a product of Canada, imported by Bristol-Myers Squibb.

FACTS:

Alactamil is said to be designed for infants who exhibit a lactose intolerance, and is intended as a complete nutritional source, or as a breast milk supplement, from birth to age one. It is described as a blend, by weight, of 54% corn syrup solids, 12.71%- milk proteins, 15.50%- coconut oil, 12.70%- soy oil, 2.50%- vitamins, minerals and emulsifiers, 1.06%- potassium citrate and 1.44%- calcium phosphate. The milk protein is said to be obtained from a casein product. It is to be packaged in 14- and 16-ounce cans of powder, 13-ounce cans of concentrated liquid, 8-and 32-ounce cans of ready-to-use liquids, and 4-ounce ready-to-use nursettes for hospital use.

ISSUE:

Whether Alactamil is classifiable in the provision for preparations for infant use, put up for retail sale, in subheading 1901.10.00, HTSUS; other nonalcoholic beverages, in subheading 2202.90.9090,HTSUS; or other food preparations no elsewhere specified or included, in subheading 2106.90.6099, HTSUS.

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LAW AND ANALYSIS:

It is your position that Alactamil is not classifiable in heading 1901, since it is not an article of milk. It is contended that as the product contains vegetable oil in place of milk fat, corn syrup solids in place of lactose, and less than half the amount of milk protein as cow's milk, it can not be considered a preparation based on milk. It is stated that the product is designed for the infant who is lactose intolerant; intended as a complete nutritional supplement, supplying the infant's protein, carbohydrate, vitamin and mineral requirements.

The Explanatory Notes to heading 1901, HTSUS, point out that food preparations based on headings 0401 to 0404, used as infant food, would be included in subheading 1901.10.00, HTSUS. Alactamil is a milk substitute product which contains a milk derivative. However, the milk protein is not derived from whole milk but created from something further down the line: A casein product. Therefore, since the protein is not obtained directly from whole milk, Alactamil is not considered a product based on goods of headings 0401 to 0404, HTSUS.

Furthermore, since Alactamil is intended as a food product, one to be used to supplement or supplant an infant's normal diet, it is something more than a beverage. It is a food. Therefore, heading 2202, HTSUS, would not apply.

The Explanatory Notes to Chapter 30, HTSUS, which concerns the classification of pharmaceuticals and medicaments, state that the chapter does not cover foodstuffs which are considered dietetic, diabetic or fortified foods; those preparations which contain only nutritional substances. The Notes go on to state that the major nutritional substances in food are proteins, carbohydrates and fats. It is indicated that these products would be classifiable as food preparations.

HOLDING:

Alactamil is classifiable under the provision for other food prepartions not elswhere specified or included, in subheading 2106.90.60, HTSUS. If product qualifies as a Canadian product, under the appropriate regulations, the rate of duty is 6 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division