CLA-2 RR:TC:FC 959562 RC
Mr. Christian Emmanuel
Cemma International, Inc.
4829, Avenue Rosedale
Montreal, Quebec H4V 2H3
Canada
RE: Classification and status under the North American Free
Trade Agreement (NAFTA) of low fat Gouda cheese from Canada;
Article 509
Dear Mr. Emmanuel:
In further response to your letter, dated May 7, 1996, on
behalf of your client, La Fabrique Bergeron, Inc., we are issuing
this binding classification ruling, under the NAFTA, for the
"Seigneur de Tilly" low fat Gouda cheese. Our New York office
has issued New York Ruling Letter (NYRL) A84300, dated June 19,
1996, to you, with respect to classification of the "Classic
Gouda," the "Popular Extra Mild," and the "Brins de Gouda"
cheeses.
FACTS:
The "Seigneur de Tilly" product, described as low fat Gouda
in wheel form, is made from pasteurized cow's milk, bacterial
culture, salt, rennet, and calcium chloride. The cheese
contains, by weight, 51 percent moisture, and 30.6 percent milk
fat in the dry matter. The cheese is to be made from milk of
Canadian origin. All other ingredients will be of either
Canadian or United States origin.
ISSUE:
Whether the "Seigneur de Tilly" low fat Gouda cheese is
properly classifiable in the tariff provision for Gouda cheese.
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA) is made in accordance with the
General Rules of Interpretation (GRIs). The systematic detail of
the harmonized system is such that virtually all 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. In the event that the goods cannot be
classified solely on the basis of GRI 1, and if the headings and
legal notes do not otherwise require, the remaining GRIs may then
be applied. The Explanatory Notes (ENs) 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 GRIs.
Customs has held in ORR Ruling 790-68, dated December 26,
1968, that low fat Gouda cheese is classifiable as Gouda cheese,
even if it is outside of the parameters of the Food and Drug
Administration standards. See, ORR Ruling 790-68 (copy
enclosed). In keeping with this long held position, we find that
the instant low fat Gouda cheese is likewise classifiable as
Gouda cheese.
HOLDING:
The "Seigneur de Tilly" low fat Gouda cheese, being wholly
obtained or produced entirely in the territory of Canada and the
United States, will meet the requirements of HTSUSA General Note
12(b)(I). Upon compliance with all applicable laws, regulations,
and agreements under NAFTA, articles from Canada, if imported in
quantities that fall within the limits described in additional
U.S. note 20 to chapter 4, will be classified in subheading
0406.90.1600, HTSUSA, and will be subject to a 3 percent ad
valorem rate of duty.
If the quantitative limits of additional U.S. note 20 to
chapter 4 have been reached, the products will be classified in
subheading 0406.90.1800, HTSUSA, and will be dutiable at US
$2.015 per kilogram. In addition, products classified in
subheading 0406.90.1800, HTSUSA, will be subject to additional
duties based on their value, as described in subheadings
9904.05.83 - 9904.05.94, HTSUSA.
An import license, issued to the importer by the United
States Department of Agriculture, will be required at the time
such merchandise is entered for consumption into the United
States. Questions regarding licensing procedures and
applications for licenses to import cheese subject to quota
should be addressed to:
U.S. Department of Agriculture
Foreign Agricultural Service
Import Policies and Trade Analysis Division
Attn.: Dairy Import Group, Rm. 5531, So.
Bldg.
Washington, DC 20250-1000
With regard to your observation that a store in New York
City sells a Gouda style cheese that does not indicate a country
of origin marking, be advised that articles of domestic origin
are
not subject to the country of origin marking requirements. The
Gouda style cheese in question may be of domestic origin.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division