CLA-2-20:S:N:N7:231 810462

Mr. Mark Barras
Kraft General Foods Canada, Inc.
3333 Place Cavendish, Suite 200
St. Laurent, Quebec H4M 2Y2
Canada

RE: The tariff classification of peanut spread from Canada.

Dear Mr. Barras:

In your letter, dated May 8, 1995, you have requested a tariff classification ruling. The product is reduced fat peanut spread. The ingredients are peanuts (72.73 percent), monoglycerides (1.06 percent), sucrose (5.8 percent), corn dextrin (18.26 percent), and salt (1.16 percent).

The peanut spread is manufactured as follows: First, the raw peanuts undergo a cleaning process in which dust, stems, and stones are removed. Then, they are roasted (with the use of a hot air flow), blanched (skins and hearts are removed), and sorted (peanuts that are under roasted or over roasted are removed with a color sorter). After sorting, additional ingredients are added (i.e: sugar, corn dextrin, stabilizer, and salt). A grinding mill grinds the roasted peanuts to the desired granulation level (i.e: a fine grind for smooth peanut paste, or a course grind for cruchy, chunky peanut paste). The grinding mill also performs the function of blending and mixing the added ingredients. A deaerator removes air from the peanut paste in order to prevent or slow down the oxidation process. The paste is cooled to a temperature below 80 degrees Fahrenheit, and filler is used to fill the containers. Air on the surface of the paste is replace with nitrogen in order to prevent or slow down oxidation, and the containers are sealed.

The applicable subheading for the reduced fat peanut spread, if imported in quantities that fall within the limits described in additional U.S. note 5 to chapter 20, will be 2008.11.0500, Harmonized Tariff Schedule of the United States (HTS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together, peanuts (ground-nuts), blanched peanuts, described in additional U.S. note 5 to chapter 20 and entered pursuant to its provisions. The general rate of duty will be 1.9 cents per kilogram. If the quantitative limits of additional U.S. note 5 to chapter 20 have been reached, the product will be classified in subheading 2008.11.1500, HTS, and will be dutiable at 151.1 percent ad valorem. In addition, products classified in subheading 2008.11.1500, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.20.01 - 9904.20.10, HTS .

The quantitative limitations from Canada in any calandar year shall not exceed 14,500 metric tons.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177.

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.


Sincerely,

Jean F. Maguire
Area Director
New York Seaport