CLA-2 CO:R:C:G: 084927 DPS
Mr. Roman E. Longoria, Jr.
International Consulting
P.O. Box 578
McAllen, Texas 78502
RE: Powdered Beverage Mixes
Dear Mr. Longoria:
Your letter of May 29, 1989, on behalf of Deshidratadora,
S.A. de C.V., Mexico, D.F., requesting classification of various
food products from Mexico under the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA), has been referred to this
office for a ruling on the classification of two beverage mixes,
Margarita Mix and Lime Mix. Samples of the subject merchandise
were provided with your ruling request.
FACTS:
The beverage mixes requiring classification are described
as: (1) Maruka Brand Margarita Mix; and (2) Sahara Brand Limeade
Mix. Both of these items are stated to contain over 86 percent
sucrose, along with various acids, flavors and colors.
To prepare the limeade drink, only water need be added. To
prepare the Margarita drink, the addition of water and tequila is
called for. Both items are packaged in tin cans which have
resealable plastic lids. Instructions for making the drinks are
included on the labels.
ISSUE:
Whether the subject drink mixes are classifiable under
subheading 1701.91.4000, HTSUSA, the provision for cane or beet
sugar and chemically pure sucrose containing added flavoring
matter; and whether the beverage mixes, as classified are subject
to a quota under subheading 9904.50.40, HTSUSA.
LAW & ANALYSIS
The General Rules for the Interpretation of the Harmonized
System (GRI's) govern classification under the Harmonized Tariff
Schedule. According to GRI 1, the primary consideration in
determining whether merchandise should be classified in a heading
should be given to the language of the heading and any relevant
chapter or section notes, and, provided such headings or notes do
not otherwise require, according to the remaining GRI's, taken in
order.
Pursuant to GRI 1, the subject beverage mixes are to be
classified according to their ingredients because no heading
specifically describes "powdered drink mixes." Both items are
stated to contain over 86 percent sucrose along with various
acids, flavor and color additives. The subheading which most
accurately describes these mixes is 1701.91.4000, HTSUSA, which
provides:
Cane or beet sugar and chemically pure sucrose in
solid form: Other: Containing added flavoring or
coloring matter: Containing added flavoring matter
whether or not containing added coloring.
Because the dominant ingredient in the beverage mixes at issue is
sucrose, and both mixes include other flavoring matter and
coloring, subheading 1701.91.4000, HTSUSA, is the appropriate
classification of the powdered drink mixes.
Classification of these products in subheading 1701.91.4000,
HTSUSA, is confirmed by the Explanatory Notes to the HTSUSA,
which constitute the official interpretation of the tariff at the
international level. The Explanatory Notes to Heading 2106, the
only competing provision in this case, which covers "Food
preparations not elsewhere specified or included," state at page
160, that "powders which have the character of flavoured or
coloured sugars used for the preparation of lemonade and the like
fall in heading 17.01 or 17.02 as the case may be."
Having determined that the subject beverage mixes are
classifiable under subheading 1701.91.4000, HTSUSA, the next
issue to be determined is whether they are subject to quota under
subheading 9904.50.40, HTSUSA. That provision states, in
pertinent part:
Articles containing over 65 percent by dry weight
of sugars derived from sugar cane or sugar beets,
whether or not mixed with other ingredients,
capable of being further processed or mixed with
similar or other ingredients, and not prepared for
marketing to the retail consumers in the identical
form and package in which imported; all the
foregoing articles provided for in subheading
1701.91.40, 1702.90.50,...
Here, the samples provided for classification are packages
prepared for marketing to retail consumers. Consistent with the
language above, such products are not subject to quota under
subheading 9904.50.40, HTSUSA. Accordingly, neither of the
beverage mixes at issue are subject to quota, provided that they
are imported in packaged form, ready for retail sale to
consumers.
HOLDING:
The two beverage mixes at issue are properly classifiable
under subheading 1701.91.4000, HTSUSA, the provision for sucrose
containing added flavoring matter. Neither of the products are
subject to quota under subheading 9904.50.40, HTSUSA, provided
that both products are imported in packaged form, ready for sale
in the retail market. Items classified under subheading
1701.91.4000, HTSUSA, are dutiable at the rate of 6 percent ad
valorem. However, items within this classification which are
products of Mexico, a beneficiary nation under the Generalized
System of Preferences (GSP), are entitled to duty free treatment
under the GSP upon compliance with all applicable regulations.
Sincerely,
John Durant, Director
Commercial Rulings Division