CLA-2 CO:R:C:F 952789 LPF
Mr. Patrick Mines
P. Mines Customs Services
52 Queen Street
P.O. Box 1197, Station B
Fort Erie, Ontario L2A 5Y2
RE: Colored Sugar Crystals in 1701, HTSUSA; Cane or beet sugar
and chemically pure sucrose, in solid form; Agricultural
import fees in 9904, HTSUSA; Additional U.S. Note 3 to
Chapter 17; Import restrictions
Dear Mr. Mines:
This is in response to your letter of October 15, 1992,
submitted on behalf of R.W. Patten Distributors, regarding the
proper classification of colored sugar crystals, under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). A sample was submitted with your request for a binding
ruling.
FACTS:
The red colored sugar crystals are a blend of 99 percent
coarse grade sugar and 1 percent food color. The product will be
shipped in one ton tote bags. Because we have not received
information regarding either the country of origin of the sugar
and food color, or the processing steps performed on the product
in Canada, we cannot determine whether the product is eligible
for preferential tariff treatment under the United States -
Canada Free Trade Agreement (CFTA). A sample was submitted with
your request for a binding ruling.
ISSUE:
Whether the colored sugar crystals are classifiable in
heading 1701 as cane or beet sugar and chemically pure sucrose,
in solid form, or are classifiable elsewhere in the HTSUSA.
-2-
LAW AND ANALYSIS:
Classification under the HTSUSA
The General Rules of Interpretation (GRI's) taken in their
appropriate order provide a framework for classification of
merchandise under the HTSUSA. Most imported goods are classified
by application of GRI 1, that is, according to the terms of the
headings of the tariff schedule and any relative section or
chapter notes. The Explanatory Notes (EN's) to the Harmonized
Commodity Description and Coding System, which represent the
official interpretation of the tariff at the international level,
facilitate classification under the HTSUSA by offering guidance
in understanding the scope of the headings and GRI's.
Heading 1701 provides for cane or beet sugar and chemically
pure sucrose, in solid form. You indicated, telephonically, on
February 17, 1993, that the product is composed of cane or beet
sugar. Thus, the colored sugar crystals are classifiable in
heading 1701.
At the six digit subheading level, 1701.11 and 1701.12
provide for raw cane or beet sugar, not containing added
flavoring or coloring matter, while 1701.91 provides for other
cane or beet sugar. Because the sugar contains added coloring
matter, it is classifiable within subheading 1701.91. In this
regard, we also note that the EN's to 1701 state that, "[r]aw or
crude cane or beet sugars occur in the form of brown crystals,
the colour being due to the presence of impurities."
Insofar as the product is described in, and entered pursuant
to, Additional U.S. Note 3(a) and 3(b) to Chapter 17 (Notes 3(a)
and 3(b)), and is not further refined or improved in quality, it
is classifiable in subheading 1701.91.2125. If the product is
not entered pursuant to Notes 3(a) and 3(b), and is not further
refined or improved in quality, it is classifiable in subheading
1701.91.2225.
Since neither Title II of the Sugar Act of 1948, nor
substantially equivalent legislation is presently in effect, the
products remain subject to the currently applicable HTSUSA duty
rates. See Additional U.S. Note 2 to Chapter 17.
Importation Restrictions
Certain requirements must be met in order for the product to
be entered pursuant to Notes 3(a) and 3(b) and thus be classified
in subheading 1701.91.21.
-3-
Note 3(a) provides, in pertinent part, that the total amount
of sugar entered under subheading 1701.91.21 shall not exceed, in
the aggregate, an amount established by the Secretary of
Agriculture (Secretary). This total amount consists of (1) a
base quota amount, (2) a quota adjustment amount and (3) an
amount reserved for the importation of specialty sugars.
Modifications of such quantitative limitations and authorization
to charge sugar entering the U.S. to a previous or subsequent
quota period are subject to the Secretary's approval.
Note 3(b) includes the specific percent allocations of the
total base quota amount for certain sugars, syrups and molasses
(including sugar classifiable in subheading 1701.91.21) to be
imported from the various supplying countries and areas listed
therein. The United States Trade Representative presently
requires that certificates of eligibility accompany such imported
sugar.
HOLDING:
Colored sugar crystals, entered pursuant to Notes 3(a) and
3(b), and not to be further refined or improved in quality, are
classifiable in subheading 1701.91.2125. The general column one
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.
If not entered pursuant to Notes 3(a) and 3(b), and not to
be further refined or improved in quality, the colored sugar
crystals are classifiable in subheading 1701.91.2225. The
general column one rate of duty is 37.386 cents per kilogram less
0.529 cents per kilogram for each degree under 100 degrees (and
fractions of a degree in proportion) but not less than 24.161
cents per kilogram.
If the product qualifies for preferential tariff treatment
under the CFTA, and all necessary documentation relevant to CFTA
status is presented upon entry, the applicable duty rate is
0.7303 cents per kilogram less 0.010334 cents per kilogram for
each degree under 100 degrees (and fractions of a degree in
proportion) but not less than 0.471927 cents per kilogram.
In addition, subheading 9904.40.20 provides that, in any
event, if the product is classifiable in either subheading, it
carries a supplemental agricultural import fee of 2.2 cents per
kilogram, but not in excess of 50 percent.
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In order to determine which, if any, quantitative
limitations or regulations apply when importing your product, we
suggest you contact:
Foreign Agricultural Service
U.S. Dept. of Agriculture-Room 5531
Import Policies & Trade Analysis Division
Washington, D.C. 20250-1000
(202) 720-5676
Sincerely,
John Durant, Director
Commercial Rulings Division