CLA-2 RR:CR:GC 961927K
Señor Hector Alvarez de la Cadena
President and Director
METCO, S.A. de C.V.
Av. Tecamachalco 161
Deleg. Miquel Hidalgo
C.P. 11010 México D.F.
RE: Revocation of New York Ruling Letter (NYRL) C85738; LC Sugar
Dear Señor Alvarez de la Candena,
In response to a request of March 20, 1998, from former counsel on your behalf for a tariff classification ruling, the Director, Customs National Commodity Specialist Division, New York, issued NYRL C85738, dated April 22, 1998, which held that a product described as LC Sugar, was classified in subheadings 1701.99.10 and 1701.99.50, Harmonized Tariff Schedule of the United States (HTSUS), subject to tariff rate quotas. Counsel, in a letter to Customs Headquarters dated June 12, 1998, requested that we reconsider the ruling and classify the sugar product in subheading 1702.90.90, HTSUS, not subject to tariff rate quotas. Pursuant to section 625(c), Tariff Act of 1930, an amended (19 U.S.C. 1625(c)), notice of proposed revocation of NYRL C85738 was published in the Customs Bulletin, Vol.33, No. 35/36, dated September 8, 1999. Your letter of October 7, 1999, was the only comment received. It, however, did not address the issue and we are precluded from granting you more time to prepare additional arguments. We have considered NYRL C85738 and determined that the classification set forth is in error. The following reflects our position in this matter.
FACTS:
The sugar product from Mexico is described as a white crystalline powder containing 997.800g/kg. of sucrose, 2.150g/kg. of potassium acesulfame, and 0.50g/kg. of unidentified substances. The product is further described as a low-calorie, high-intensity sweetener produced by the co-crystallization of sugar cane and potassium acesulfame. For purposes of this decision, we assume that the product is imported in bulk.
ISSUE:
The issue is whether the product is classified by virtue of rule 1, of the General Rules of Interpretation (GRI), HTSUS, as a food preparation not elsewhere specified or included, in subheading 2106.90.94, HTSUS.
LAW AND ANALYSIS:
The classification of imported merchandise under the HTSUS is governed by the principles set forth in the GRI. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section and chapter notes and, unless otherwise required, according to the remaining GRI, taken in their appropriate order. Accordingly, we first have to determine whether the food sweetener is classified by virtue of
GRI 1.
Heading 1701, HTSUS covers cane or beet sugar and chemically pure sucrose, in solid form. The subject product is a mixture of cane sucrose and potassium acesulfame. Therefore, you conclude that the product cannot be classified in subheadings 1701.99.10 and 1701.99.50, HTSUS, and should be classified in subheading 1702.90.90, HTSUS, as other sugars, including chemically pure lactose, maltose, glucose, and fructose, in solid form. We agree that under GRI 1, the product, sucrose with the addition of potassium acesulfame, is not classified in heading 1701, HTSUS.
We must next consider whether by virtue of GRI 1, the product is classified in heading 1702. Heading 1702 covers “other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups, not containing added flavoring or coloring matter; artificial honey, whether or not mixed with natural honey; [and] caramel.” The product is not a sugar syrup, or artificial honey, or caramel and it is not other sugars, including chemically pure lactose, maltose, glucose and fructose. “Other sugars” covered in heading 1702 do not include cane sucrose or beet sugars. Heading 1702 does not provide for other sugars that are mixed with components such as potassium acesulfame that is classified in heading 2934, HTSUS. Accordingly, we conclude that under GRI 1, the product also is not classified in heading 1702, HTSUS.
Heading 2106, HTSUS, provides for food preparations not elsewhere specified or included. Since the sweetener is not elsewhere specified or included, heading 2106 is broad enough to cover the product as a food preparation not elsewhere specified or included. Therefore, the product is classified by virtue of GRI 1 in subheading 2106.90.94, HTSUS, as a food preparation not elsewhere specified or included, other articles containing over 65 percent by dry weight of sugar as described in U.S. Note 7 to Chapter 17 and entered pursuant to its provisions, with a 1999 general rate of duty of 29.6¢/kg + 8.8 % ad valorem. Inasmuch as this product can be classified by virtue of GRI 1, we need not consider alternative claims for classification by virtue of GRI 3(b).
HOLDING:
A product known as LC Sugar, a white crystalline powder, consisting of sucrose with a polarimeter reading of over 99.5 degrees mixed with a small quantity of potassium acesulfame, is classified by virtue of GRI 1, in subheading 2106.90.94, HTSUS, as a food preparation not elsewhere specified or included, other articles containing over 65 percent by dry weight of sugar as described in U.S. Note 7 to Chapter 17 and entered pursuant to its provisions.
NYRL C85738 is revoked.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
John Durant, Director
Commercial Rulings Division