CLA-2-18:S:N:N7:232 808422
Mr. Robert V. Tinkham
Chicago Sweeteners Incorporated
1700 Higgins Road
Suite 610
Des Plains, Illinois 60018
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of a chocolate
product from Canada; Article 509
Dear Mr. Tinkham:
In your letter dated March 29, 1995 you requested a ruling
on the status of chocolate from Canada under the NAFTA.
The subject merchandise is stated to contain 59 percent
granulated sugar, 31 percent whole milk powder and 9 percent
chocolate liquor. The butterfat content will range from 8.6 to
9.1 percent. The above ingredients are sourced from various
countries and will be manufactured into chocolate in Canada. The
product will be imported in the form of a granular material in
50, 100 and 2000 pound containers.
The applicable subheading for the chocolate, if imported in
quantities that fall within the limits described in additional
U.S. note 2 to chapter 18, will be 1806.20.2400, Harmonized
Tariff Schedules of the United States (HTS), which provides for
Chocolate and other food preparations containing cocoa: Other
preparations in blocks or slabs weighing more than 2 kg or in
liquid, paste, powder, granular or other bulk form in containers
or immediate packings, of a content exceeding 2 kg: Preparations
consisting wholly of ground cocoa beans, with or without added
cocoa fat, flavoring or emulsifying agents, and containing not
more than 32 percent by weight of butterfat or other milk solids
and not more than 60 percent by weight of sugar...other
...containing butterfat or other milk solids (excluding articles
for consumption at retail as candy or confection)...other,
containing over 5.5 percent by weight butterfat...described in
additional U.S. note 2 to chapter 18 and entered pursuant to its
provisions. The general rate of duty will be 5 percent ad
valorem. If the quantitative limits of additional U.S. note 2 to
chapter 18 have been reached, and the product contains 21 percent
or more by weight of milk solids, classification is under
subheading 1806.20.2800, HTS, and dutiable at the rate of 60.6
cents per kilogram plus 4.9 percent ad valorem.
Each of the non-originating materials used to make the
chocolate has satisfied the changes in tariff classification
required under HTSUSA General Note 12(t)/18. The chocolate will
be entitled to a 1.5 percent ad valorem rate of duty under the
NAFTA upon compliance with all applicable laws, regulations, and
agreements. This rate will apply only if the chocolate is
classified under subheading 1806.20.2400, HTS.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
This ruling letter is binding only as to the party to whom
it is issued and may be relied on only by that party.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport