CLA-2 RR:CR:GC 964654ptl
Ms. Roberta J. Ruffolo
Sales/Logistics Co-ordinator
Loders Croklaan
100 Belfield Road
Rexdale, Ontario, Canada
M9W 6N1
Re: CHOCLIN
Dear Ms. Ruffolo:
This is in response to your letter of October 4, 2000, to the Director, National Commodity Specialist Division, New York, in which you requested the classification, under the Harmonized Tariff Schedule of the United States (HTSUS), of a product identified as Choclin. Your letter was forwarded to this office for response. We apologize for the delay.
FACTS:
Choclin is described as a mixture of 70 percent fractionated palm oil and 30 percent fractionated shea nut oil. Neither oil has been hydrogenated. The individual oils are imported into Canada from the Netherlands. After importation, they are refined, bleached and deodorized. A minute percentage (0.003 percent) of citric acid is added during deodorization to add stability to the flavor of the product. The Choclin will be imported into the United States either in bulk (heated trailer) format or in 20 kg. cartons.
You contend that the Choclin should be classified in subheading 1511.90.0000, HTSUS, which provides for: Palm oil and its fractions, whether or not refined, but not chemically modified: other.
ISSUE:
What is the classification of Choclin?
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). The systematic detail of the HTSUS 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 in order.
In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes (ENs), although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The HTSUS provisions under consideration are as follows:
1511 Palm oil and its fractions, whether or not refined, but not chemically modified:
* * *
1511.90.0000 Other
1517 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:
* * *
1517.90 Other:
Artificial mixtures of two or more of the products provided for in headings 1501 to 1515, inclusive:
1517.90.20 Other
* * *
1517.90.2080 Other
You contend that Choclin is classified under subheading 1511.90.0000, HTSUS, which provides for: Palm oil and its fractions, whether or not refined, but not chemically modified: other. In support of this position you argue that the "blend of non-hydrogenated oils can be considered of a single nature in that it contains only vegetable oils and ones that are processed only to the extent allowed in headings 1507 to 1515." You further state that the essential character of the Choclin is the palm oil, since it accounts for the largest percentage and greatest value of the product. You further state that the product is excluded from heading 1517, HTSUS, because the ENs indicate that oils classified in that heading have been processed further than simply being refined.
The ENs to Chapter 15 provide, in General Note (B), "Headings 15.07 to 15.15 of this Chapter cover the single (i.e., not mixed with fats or oils of another nature), fixed vegetable fats and oils mentioned in the headings, together with their fractions, whether or not refined, but not chemically modified." Headings 1507 to 1515 provide for various types of vegetable oils, including palm oil (1511), and shea oil (1515, which is the "other" vegetable oil heading). The ENs indicate that the headings cover the single oil mentioned in the headings. In other words, heading 1511 covers the single oil mentioned, which is palm oil. The requirement that the headings cover a single oil is further clarified by the parenthetical description "not mixed with fats or oils of another nature." This statement refers to different types of vegetable oils which are derived from different vegetable materials.
Additional guidance regarding the scope of headings 1507 to 1515 is provided by the ENs to Chapter 15 which state, in relevant part, "These headings do not cover edible or inedible mixtures or preparations, or vegetable fats and oils that have been chemically modified (heading 15.16, 15.17 or 15.18 …)" (Emphasis in original)
Heading 1517 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 of heading 1516. In describing the types of products classified in this heading, the ENs to the chapter state, on page 133: "They are generally liquid or solid mixtures or preparations of: (1) Different animal fats or oils or their fractions; (2) Different vegetable fats or oils or their fractions; or (3) Both animal and vegetable fats or oils or their fractions. The ENs then discuss the types of processing which may be performed on these products and ingredients which may be added: "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)." (emphasis added) Clearly, the ENs indicate that the mixtures may be processed, and may contain added ingredients. However, it is also clear that the mixtures are not required to be processed, or have added ingredients to be classified in heading 1517.
Accordingly, because Choclin is a mixture of two different oils, one of which is classified in heading 1511, and the other which is classified in heading 1515, it is classified in subheading 1517, HTSUS.
HOLDING:
Choclin, a blend of 70 percent fractionated palm oil and 30 percent fractionated shea oil, is classified in subheading 1517.90.2080, HTSUS, 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: artificial mixtures of two or more of the products provided for in headings 1501 to 1515, inclusive: other: other.
Sincerely:
John Durant, Director
Commercial Rulings Division