CLA-2 CO:R:C:G 087203 ALS
Mr. L. L. Barnhart
Sr. Transportation Specialist
Export/Import Services
Hercules Plaza
Wilmington, DE 19894
RE: Apple Aroma, pineapple aroma and natural orange aroma, also referred to
as essences or essence oils
Dear Mr. Barnhart:
This is in further reference to your letters of March 27, 1990, to our New
York Seaport Area Office regarding the above products and other products on which
that office has issued New York Ruling Letters (NYRL) 850922 and 850925, dated
May 16, 1990. Your request, as to the 3 items referenced above have been
referred to this office for reply. Our response will be limited thereto. You
submitted samples of the subject products which were destroyed in laboratory
analysis procedures.
FACTS:
The products are liquids derived from the manufacture process of citrus
fruits and fruit peels from Brazil. They are used as raw materials and additives
to make flavors and flavoring extracts for food and fragrances. Each substance
is an aqueous solution containing odoriferous substances and alcohol.
ISSUE:
What is the proper classification of each substance?
- 2 -
LAW AND ANALYSIS:
The classification of merchandise under the Harmonized Tariff Schedule of
the Unites States Annotated (HTSUSA) is governed by the General Rules of
Interpretation (GRI's). GRI 1, HTSUSA, states in part that for "legal purposes,
classification shall be determined according to the terms of the heading and any
relative section or chapter notes..."
In reviewing the facts in this case, we have considered the application
of Headings 3301 and 3302, Harmonized Tariff Schedule of the United States
(HTSUS). We noted that Heading 3301 covers the volatile oils, the essential or
pure oils, obtained from citrus fruits and other plants by steam distillation
or other methods. These oils serve as raw materials in the perfumery, food and
other industries. Heading 3301 also covers resinoids in various media, terpenic
by-products of the deterpenation of essential oils as well as aqueous
distillation and aqueous solutions of essential oils. While it is clear that
the products in question, which are individually composed of apple, pineapple
or natural orange essence, also referred to as aroma, are not essential oils
because of the presence of alcohol and water, nor are they resinoids or terpenic
by-products of essential oils, there is a question as to whether they might
qualify as aqueous distillates or aqueous solutions of essential oils.
The Explanatory Notes to the Harmonized Commodity Description and Coding
System (EN's) constitute the official interpretation of the Harmonized Tariff
System at the international level and are useful in ascertaining the
classification of merchandise under the HTSUS. Explanatory Note 33.01(D)
indicates that aqueous distillates are obtained as the aqueous portions of the
distillates resulting when essential oils are extracted from plants by steam
distillation. It also indicates that after the essential oils have been
decanted, the aqueous distillates still retain a fragrance due to the presence
of small quantities of essential oils. It further indicates that these
distillates contain small quantities of alcohol. To make a determination as to
whether the products could be considered aqueous distillates, we referred to the
flow chart provided by the company which describes the process by which the
products under consideration were produced. Based on information you
telephonically provided to us on August 8, 1990, which you indicated was based
on advice received from Hercules laboratory personnel, the products under
consideration fit into one of the - 3 -
boxes at the bottom left of the flow chart labelled water-phase essence and oil-
phase essence. In other words each product is the essence or aroma of a
particular fruit.
In following the flow chart we understand that these products are derived
from a process which initially separates the juice into concentrated juice and
water and oil vapor. The next step in the process separates the water and oil
vapors into water and into essence oils, as labelled on the flow chart. Based
on our discussion with laboratory personnel at Customs Headquarters, we
understand that the box labelled water on the flow chart is the aqueous
distillation of this separation process and that the box labelled essence oils
represents the essential oils, the pure oil. The flow chart shows that the
products under consideration are produced from the essential oils. Based on our
understanding of the production process, as represented by the flow chart and
amplified by the above EN, the products under consideration are not aqueous
distillates or aqueous solutions of essential oils. We, therefore, have
concluded that Heading 3301, HTSUS, does not cover the products under
consideration.
We next considered Heading 3302, which covers mixtures of odoriferous
substances and mixtures (including alcoholic solutions) with a basis of one or
more of these substances, of a kind used as a raw material in industry.
Explanatory Note 33.02 specifies that varieties of specified mixtures are covered
by Heading 3302 provided they are of a kind used as raw materials in the
perfumery, food or drink industries or other industries. The mixtures specified
include mixtures of essential oils, resinoids, synthetic aromatics, two or more
odoriferous substances, and mixtures with one or more of the above substances
provided that that substance forms the basis of the mixture. In this regard we
note that the products are each composed of at least 3 elements, i.e., essence,
water and alcohol. We also note that the products are used as raw materials and
additives to make flavors and flavoring extracts for food and fragrances. We,
therefore, believe that they can be properly included under Heading 3302 and
under a particular subheading thereof based on their alcoholic content.
HOLDING:
The apple, pineapple and natural orange aromas which were the subject of
your inquiry are classifiable under subheading 3302.10.2000 which provides for
mixtures of odoriferous - 4 -
substances and mixtures with a basis of one or more of these substances, of a
kind used as raw materials in industry, containing not over 20 percent of alcohol
by weight. Items classified under this subheading are subject to a general duty
rate of 6.6 cents per kilogram plus 3 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division