HQ 953327

June 4,1993

CLA-2 CO:R:C:F 953327 JGH

Mr. Victor J. Naleski
Heublein, Inc.
330 New Park Avenue
P.O. Box 778
Hartford, Connecticut 06142-0778

RE: Classification of a Non-Fat Dairy Base Rum Liqueur

Dear Mr. Naleski:

Your letter of January 25, 1993, concerns the tariff status in the Harmonized Tariff Schedules of the United States (HTSUS) of a non-fat dairy base rum liqueur from the Netherlands.

FACTS:

The composition of the base product as imported is given as consisting of:

41% - Milk protein concentrate 7.3% - Skim milk concentrate 20.1% - Sucrose 17.8% - Water 10.8% - Rum 3.6% - Maltodextrins It will be imported in 16,000 liter tank containers, and subsequent to importation the imported base will be mixed with additional distilled spirits, sugar, flavors and color to make the finished product. The approximate composition of the finished product is:

40% - Non-fat dairy base rum liqueur 26% - Water 18% - Sugar syrup 13% - Distilled Spirits 3% - Flavor and Color - 2 -

ISSUE:

Classification of a dairy based rum liqueur imported to make finished alcoholic beverages.

LAW AND ANALYSIS:

The Explanatory Notes (ENs)to the HTSUS provide an interpretation of the tariff at the international level. In regard to Heading 2208 - Compound Alcoholic Preparations of a Kind Used For the Manufacture of Beverages - the ENs describe the provision as including compound alcoholic preparations of a kind used in the manufacture of various beverages (e.g., aperitives, liqueurs and nonalcoholic beverages). It goes on to state that the beverage can be completed by diluting the preparation with water, wine, or alcohol, with or without the addition, for example, of sugar or carbon dioxide.

In this instance it appears that the beverage is substantially complete as imported; the ingredients added subsequent to importation do not change the basic composition of the imported product, which is that of an almost completed alcoholic beverage, but merely enhance it.

HOLDING:

The non-fat dairy base rum liqueur as described is classifiable under the provision for other compound alcoholic preparations of a kind used for the manufacture of beverages in subheading 2208.90.80, HTSUS. The rate of duty is 33 cents per proof liter. In addition the product would be subject to a Federal Excise Tax of $13.50 per proof gallon.

Sincerely,

John Durant, Director