CLA-2:CO:R:C:G 087088
Mr. Charles Broeg
101 Victoria Court
Houma, LA 70360
RE: Modification of New York Ruling Letter 842906; Sugar and
starch "non-pareils"
Dear Mr. Broeg:
In New York Ruling Letter (NYRL) 842906, dated July 7, 1989,
you received a ruling on the classification of sugar and starch
"non-pareils" from Canada and unidentified countries in the
Caribbean Basin and South America. In that ruling the products
at issue were classified in subheading 2106.90.50, of the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), which provides for food preparations not elsewhere
specified or included: other: subject to quotas established
pursuant to Section 22 of the Agricultural Adjustment Act, as
amended. Pursuant to 177.9 of the Customs Regulations (19
C.F.R. 177.9), we are modifying NYRL 842906.
FACTS:
The sugar and starch non-pareils are described as hard,
dense spheres of varying diameters, comprised of 75 percent sugar
and 25 percent starch. The spheres are neither colored nor
coated, and will be imported in bulk for use as a base or carrier
for pharmaceutical products.
ISSUE:
What is the correct classification for the sugar and starch
products?
LAW AND ANALYSIS:
Modification
Our regulations allow for the modification or revocation of
ruling letters. As stated in 19 C.F.R. 177.9(d)(1), "[a]ny
ruling letter found to be . . . not in accordance with the
current views of the Customs Service may be modified or revoked.
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Modification or revocation shall be effected by Customs
Headquarters by giving notice to the person to whom the ruling
letter was addressed . . . ." As provided in 177.9(d)(2),
"[t]he modification or revocation of a ruling letter will not be
applied retroactively with respect to the person to whom the
ruling was issued, or to any person directly involved in the
transaction to which that ruling related . . . ."
Classification
Classification of goods under the HTSUSA is governed by the
General Rules of Interpretation (GRI's), taken in order. When
goods are prima facie classifiable under two or more headings GRI
3 is applicable. In this case classification is determined by
application of GRI 3(b) which provides in pertinent part:
Mixtures . . . shall be classified as if they
consisted of the material which gives them their
essential character.
In general, essential character has been construed to mean
the attribute which strongly marks or serves to distinguish what
an article is; that which is indispensable to the structure, core
or condition of the article. In addition, the Explanatory Notes
provide further factors which help determine the essential
character of goods. Factors such as bulk, quantity, weight or
value, or the role of a constituent material in relation to the
use of the goods are to be utilized, though the importance of
certain factors will vary between different kinds of goods.
The sugar, which constitutes the primary ingredient of the
product at issue, would impart the essential character. Though
the product will be used, subsequent to importation, as a carrier
for pharmaceuticals, "[i]t is well settled that, . . ., imported
merchandise must be classified with reference to its condition
when imported." United States v. Citroen, 223 U.S. 407, 32 S.Ct.
256, 56 L. Ed. 486 (1911). "Condition as imported refers to the
condition of the goods when they are brought within the
jurisdiction of the United States with intent to unlade." The
Sherwin-Williams Co. v. United States, 38 CCPA 13, 18, C.A.D.
432 (1950). Therefore the headings for sugar would be the proper
classification for the product at issue.
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HOLDING:
The product at issue, sugar and starch "non-pareils", is
properly classified in subheading 1701.99.00, HTSUSA, which
provides for cane or beet sugar and chemically pure sucrose, in
solid form: other: other. Under this subheading the merchandise
is subject to the quota and fees provided in additional U.S. Note
3 to Chapter 17, HTSUSA. The rate of duty is 1.4606 cents per
kilogram, less 0.020668 cents per kilogram for each degree under
100 degrees (and fractions of a degree in proportion) but not
less than 0.943854 cents per kilogram; however, the merchandise
may be entitled to free entry under the Generalized System of
Prefernces or the Caribbean Basin Economic Recovery Act if
otherwise qualified.
NYRL 842906, is hereby modified pursuant to 177.9 of the
Customs Regulations. While the modification is effective
immediately, it is prospective in nature, and there is no effect
on previous Customs transactions.
Sincerely,
John Durant, Director
Commercial Rulings Division