CLA-2 CO:R:C:G 087546 WAW
Mr. J. Roger Erwin
Procter & Gamble Company
Two Procter & Gamble Plaza
Cincinnati, OH 45202-3314
RE: Classification of Crisco shortening
Dear Mr. Erwin:
This letter is in response to your inquiry, dated July 2,
1990, concerning the tariff classification of two Crisco
shortening products under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA). A sample of the merchandise
was not submitted along with your request. You have requested
confidential treatment for this request.
FACTS:
The subject merchandise is described as a one pound block of
regular Crisco shortening, and a one pound block of butter-
flavored Crisco shortening. The regular shortening consists of
the following ingredients: 78.3 percent of refined, bleached,
and hydrogenated Canola oil, 17.4 percent of refined, bleached,
and hydrogenated Malaysian palm oil, and 4.3 percent of refined,
bleached, and hydrogenated soybean oil. The butter-flavored
shortening contains the same ingredients plus two artificial
butter flavors and food coloring. Both of theses products are
subjected to the processes of blending and deodorizing.
ISSUE:
Whether the subject merchandise consists of a "mixture" of
various vegetable oils under subheading 1517.90.10 or 1517.90.20,
HTSUSA.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined first according
to the terms of the headings of the tariff and any relative
section or chapter notes and, unless otherwise required,
according to the remaining GRI's, taken in order.
The importer maintains that the shortenings are properly
classifiable in subheading 1517.90.4080, HTSUSA, which provides
for Margarine; edible mixtures or preparations of animal or
vegetable fats or oils or of fractions of different fats or oils
of this chapter, other than edible fats or oils or their
fractions of heading 1516: Other: Other: Other, dutiable at 8.8
cents/kilo under the Canadian Free Trade Agreement. The importer
further argues that the merchandise is not a mixture of "two or
more of the products provided for in headings 1501 to 1515,
inclusive" and is therefore precluded from classification under
subheadings 1517.90.10 or 1517.90.20, HTSUSA. It is the
importer's position that the product is a mixture of hydrogenated
oils which are included in Heading 1516, HTSUSA, but further
prepared.
We agree that these products are properly classified under
Heading 1517, HTSUSA. The Explanatory Notes constitute the
official interpretation of the tariff at the international level.
The Explanatory Notes to Heading 1517, HTSUSA, specifically refer
to "shortenings" as one of the products included within the
heading.
Edible mixtures or preparations of animal or vegetable
fats or oils or of fractions of different fats or oils
of this Chapter, other than edible fats or oils or
their fractions of heading 1516; for example, imitation
lard, liquid margarine and shortenings (produced from
texturised oils or fats).
The importer has suggested that the two shortenings are
classified under subheading 1517.90.4080, HTSUSA. However, this
subheading only provides for single types of hydrogenated or
partially hydrogenated oils (i.e., cottonseed, soybean) or
similarly treated fractions of animal or vegetable fats and oils
and does not include mixtures of fats or oils. The two
subheadings within Chapter 15 which cover mixtures of fats or
oils include subheading 1517.90.10, HTSUSA, which covers mixtures
containing five percent or more by weight of soybean oil or any
fraction thereof, and subheading 1517.90.20, HTSUSA, which covers
other mixtures of oils. Both of these subheadings include
artificial mixtures of two or more of the products included in
headings 1501 to 1515, HTSUSA. Headings 1501 to 1515, HTSUSA,
provide for the specific types of animal and vegetable fats and
oils which are included in Chapter 15 of the HTS.
Fats and oils which have been hydrogenated may be included
under the subheadings of Heading 1517, HTSUSA. The Explanatory
Notes to Heading 1517, HTSUSA, state that:
The products of this heading, the fats or oils of which
may previously have been hydrogenated, may be worked by
emulsification (e.g., with skimmed milk), churning,
texturation (modification of the texture or crystalline
structure), etc. and may contain small quantities of
added lecithin, starch, colouring, flavouring,
vitamins, butter or other milkfat (subject to the
restrictions in Note 1(c) to this Chapter).
Based on the language of the above Explanatory Note, the
sample shortenings can be included under subheadings 1517.90.10,
and 1517.90.20, HTSUSA, whether or not they have been
hydrogenated. Subheading 1517.90.10, HTSUSA, provides for
mixtures of vegetable oils which contain five percent or more by
weight of soybean oil. Inasmuch as both the regular and butter-
flavored Crisco shortenings consist of less than five percent by
weight of soybean oil, and since they are artificial mixtures of
fats or oils, it is the determination of this office that the
sample merchandise is more properly classified in subheading
1517.90.20, HTSUSA, which provides for artificial mixtures of two
or more of the products provided for in headings 1501 to 1515,
inclusive: Other: Baking or frying fats: Wholly of vegetable
oils.
HOLDING:
Based on the foregoing analysis, both the regular and
butter-flavored Crisco shortenings are properly classified in
subheading 1517.90.2040, HTSUSA, which provides for artificial
mixtures of two or more of the products provided for in headings
1501 to 1515, inclusive: Other: Baking or frying fats: Wholly of
vegetable oils. Articles classified in the above subheading are
subject to a rate of duty of 10 percent ad valorem. Articles
classified under this subheading may qualify for a reduced rate
of duty under the United States-Canada Free Trade Agreement
provided that the importer satisfies all of the requirements for
importation and the articles "originate" in Canada.
Sincerely,
John Durant, Director
Commercial Rulings Division