CLA-2-04:S:N:N7:231 811138
Mr. Robert Tinkham
Chicago Sweeteners Incorporated
1700 Higgins Road, Suite 610
Des Plaines, IL 60018
RE: The tariff classification and status under the North American
Free Trade Agreement (NAFTA) of a dairy product from Canada;
Article 509
Dear Mr. Tinkham:
In your letter, dated May 31, 1995, you requested a ruling
on the
status of a dairy product from Canada under the NAFTA.
The merchandise is a dairy product that will be used as an ingredient
in the manufacture of confections and other food products. The ingredients,
by weight, are as follows:
1. granulated sugar: 10 percent
2. whole milk powder (28.5 percent fat): 90 percent
total butterfat content: 25.7 percent
The sugar that will be used in this product is obtained from various
non-NAFTA countries throughout the world. The whole milk powder will be
sourced as follows:
ITEM A. whole milk powder produced in Canada
ITEM B. whole milk powder produced in non-NAFTA countries
The ingredients are imported into Canada for the manufacture of the
dairy product. The process involves the measurement and proportioning of the
formula's ingredients, and their introduction from holding tanks and vessels
into a stainless steel ribbon blender. The product that is created is
homogenous and free-flowing powder. It is then packaged in 50, 100 or 2,000
pound containers for importation into the U.S.
The applicable tariff provision for the dairy products, ITEMS A and B
listed above, if imported in quantities that fall within the limits described
in additional U.S. note 10 to chapter 4, will be 0402.29.1000, Harmonized
Tariff Schedule of the United States Annotated (HTSUSA), which provides for
milk and cream, concentrated or containing added sugar or other sweetening
matter, in powder, granules or other solid forms, of a fat content, by
weight, exceeding 1.5 percent, other, described in additional U.S. note 10 to
chapter 4 and entered pursuant to its provisions. The general rate of duty
(for ITEM B) will be 17.5 percent ad valorem. If the quantitative limits of
additional U.S. note 10 to chapter 4 have been reached, the product will be
classified in subheading 0402.29.5000, HTS, and will be dutiable at $ 1.266
per kilogram plus 17.1 percent ad valorem. In addition, products classified
in subheading 0402.29.5000, HTS, will be subject to additional duties based
on their value, as described in subheadings 9904.04.50 - 9904.05.01.
The dairy product, ITEM A, whose whole milk powder is produced in
Canada, and whose non-originating material (granulated sugar) is used in its
manufacture, has satisfied the changes in tariff classification required
under HTSUSA General Note 12(t)(4). If it is imported in quantities that
fall within the limits described in additional U.S. note 10 to chapter 4, the
applicable tariff provision will be 0402.29.1000, HTS, which provides for
milk and cream, concentrated or containing added sugar or other sweetening
matter, in powder, granules or other solid forms, of a fat content, by
weight, exceeding 1.5 percent, other, described in additional U.S. note 10 to
chapter 4 and entered pursuant to its provisions. It will be entitled to a
5.2 percent ad valorem rate of duty under the NAFTA upon compliance with all
applicable laws, regulations, and agreements. If the quantitative limits of
additional U.S. note 10 to chapter 4 have been reached, the product will be
classified in subheading 0402.29.5000, HTS, and will be dutiable at $1.266
per kilogram plus 17.1 percent ad valorem. In addition, products classified
in subheading 0402.29.5000, HTS, will be subject to additional duties based
on their value, as described in subheadings 9904.04.50 - 9904.05.01.
Importations of these products are subject to import regulations
administered by various U.S. agencies. Information regarding applicable
regulations administered by the U.S. Department of Agriculture may be
addressed to that agency at the following location:
U.S. Department of Agriculture
A.P.H.I.S., Veterinary Services
Federal Building, Room 758
6505 Belcrest Road
Hyattsville, MD 20782
Att: Dr. John Blackwell
Information regarding applicable regulations administered by the U.S.
Food and Drug Administration may be addressed to that agency at the following
location:
U.S. Food and Drug Adminisration
Division of Regulatory Guidance
HFF 314, 200 C Street, S.W.
Washington, DC 20204
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