OT:RR:CTF:FTM H310154 MJD
Mr. Matt Herzog
CAJ Food Product, Inc.
11650 Olio Rd, Suite 1000
Fishers, IN 46037
RE: Tariff Classification of the Beet and Carrot Juice
Dear Mr. Herzog,
This is in response to your letter, dated December 3, 2019, filed on behalf of CAJ Food Product, Inc., requesting a binding ruling with respect to the tariff classification of beet and carrot juice under the Harmonized Tariff Schedule of the United States (“HTSUS”). Our ruling is set forth below.
FACTS:
The product at issue is the beet and carrot juice, containing 98% organic beetroot juice and 2% organic carrot juice. There is no added sugar, and the product is gluten free. The production process begins with freshly-harvested raw beets and carrots that are prepared and juiced separately. Next, each juice is lacto-fermented. Lacto-fermentation is a process by which lactic acid is added to the juice to ferment the natural sugars in the juice and to inhibit the growth of harmful bacteria. This process helps to preserve the juice for a longer shelf life, and to retain the juice’s natural color and flavor. The lacto-fermentation process does not produce any alcohol. The lacto-fermented beet juice and lacto-fermented carrot juice are then mixed together, filled in 32-ounce bottles and capped. The bottles are pasteurized using heat, thereby stopping the lacto-fermentation process. Heat pasteurization also helps the juice last longer. The capped bottles are then labeled and placed in cases, which are also labeled.
ISSUE:
What is the tariff classification of the beet and carrot juice?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined 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 GRI may then be applied in order.
The 2020 HTSUS headings under consideration are:
2009: Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter:
2202: Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored, and other nonalcoholic beverages, not including fruit or vegetable juices of heading 2009:
* * * * *
Note 6 to Chapter 20 provides:
For the purposes of heading 2009 the expression “juices, unfermented and not containing added spirit” means juices of an alcoholic strength by volume (see note 2 to chapter 22) not exceeding 0.5 percent vol.
* * * * *
In addition, the Explanatory Notes (“EN”) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989)
The ENs to Chapter 20, HTSUS, states, in pertinent part, the following:
This Chapter includes:
…
(5) Fruit or vegetable juices, neither fermented nor containing added alcohol, or of an alcoholic strength by volume not exceeding 0.5 % vol.
…
This Chapter does not cover:
…
(d) Fruit or vegetable juices of an alcoholic strength by volume exceeding 0.5% vol (Chapter 22).
EN 20.09 provides in relevant part:
The fruit and vegetable juices of this heading are generally obtained by mechanically opening or pressing fresh, healthy and ripe fruit or vegetables. This may be done (as in the case of citrus fruits) by means of mechanical “extractors” operating on the same principle as the household lemon-squeezer, or by pressing which may or may not be preceded either by crushing or grinding (for apples in particular) or by treatment with cold or hot water or with steam (e.g., tomatoes, blackcurrants and certain vegetables such as carrots and celery). The juices of this heading also include coconut water.
…
Provided they retain their original character, the fruit or vegetable juices of this heading may contain substances of the kinds listed below, whether these result from the manufacturing process or have been added separately:
…
(3) Products added to preserve the juice or to prevent fermentation (e.g., sulphur dioxide, carbon dioxide, enzymes).
…
Similarly, intermixtures of the juices of fruits or vegetables of the same or different types remain classified in this heading . . .
…
The heading further excludes:
(b) Fruit or vegetable juices of an alcoholic strength by volume exceeding 0.5 % vol (Chapter 22).
The ENs to Chapter 22, HTSUS, states, in pertinent part, the following:
The products of this Chapter constitute a group quite distinct from the foodstuffs covered by the preceding Chapters of the Nomenclature.
They fall into four main groups:
(A) Water and other non alcoholic beverages and ice.
(B) Fermented alcoholic beverages (beer, wine, cider, etc.).
(C) Distilled alcoholic liquids and beverages (liqueurs, spirits, etc.) and ethyl alcohol.
(D) Vinegar and substitutes for vinegar.
EN 22.02 provides in relevant part:
This heading does not include:
…
(c) Fruit or vegetable juices, whether or not used as beverages (heading 20.09).
* * * * *
You suggest classification under heading 2202, HTSUS, which provides for “Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored, and other nonalcoholic beverages, not including fruit or vegetable juices of heading 2009.” You claim that the juice is precluded from heading 2009, HTSUS, because it is produced through lacto-fermentation and heading 2009, HTSUS, is for “unfermented juices.” You also cite to guidance from the European Union which provides that lacto-fermented juices should be classified as “Milk Fermented Juice” under heading 2202, HTSUS.
Heading 2009, HTSUS, provides for vegetable juices eo nomine. EN 20.09 further explains that the heading is also for juices that are mixtures of different juices. However, heading 2009, HTSUS, states, among other things, that the juices must be “unfermented and not containing added spirits.” Note 6 to Chapter 20, HTSUS, clarifies what is meant by “unfermented and not containing added spirits” by explaining that juices under this heading must not have an alcoholic strength by volume of more than 0.5 percent. This is further supported by the ENs to Chapter 20 and the ENs to heading 2009, HTSUS, which emphasize that juices of an alcoholic strength by volume exceeding 0.5 percent are excluded from the chapter.
In this case, the beet and carrot juice is lacto-fermented which is unlike the fermentation prohibited by heading 2009, HTSUS. Here, lacto-fermentation takes place by adding lactic acid to the juice, fermenting the natural sugars to inhibit the growth of harmful bacteria. The lacto-fermentation process produces no alcohol in the juice. The objective of this type of fermentation process is to preserve the juice for a longer shelf life. EN 20.09 explains that certain substances can be added to juice to help preserve it so long as the substance does not alter the original character of the juice. Thus, the lactic acid that is added to the juice is an acceptable substance under heading 2009, HTSUS, because it helps preserve the beet and carrot juice without altering its original character. Therefore, while the beet and carrot juice is lacto-fermented, it is not fermented within the meaning of heading 2009, HTUS. Fermented juices under heading 2009, HTSUS, refers to those that have an alcoholic strength by volume of more than 0.5. Since, the beet and carrot juice has no alcohol content, and the lacto-fermentation preserves the juice without changing its character, the beet and carrot juice is considered an unfermented juice within the meaning of heading 2009, HTSUS.
Lastly, the beet and carrot juice is not a product of Chapter 22, HTSUS. Chapter 22 of the HTSUS is specifically reserved for distinct food items and beverages that are not mentioned in the previous chapters. As mentioned beforehand, vegetable juices are specifically provided for in heading 2009, HTSUS. Furthermore, EN 22.02 excludes vegetable juices, such as the beet and carrot juice at issue, from its heading. Based on the aforementioned, we find that the beet and carrot juice is not precluded from heading 2009, HTSUS, because it is lacto-fermented, and it is properly classified as a vegetable juice under heading 2009, HTSUS.
HOLDING:
The beet juice with carrot juice is classified under subheading 2009.90.20, HTSUS, which provides for “Fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: Mixtures of juices: Vegetable.” The general rate of duty will be 0.2?/liter.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Yuliya A. Gulis, Chief Food, Textiles and Marking Branch