CLA-2-04:RR:NC:2:231 E84494
Mr. John Eggena
Laiterie Tournevent
2350 Segouin
Drummondville, Quebec J2C 5Z4
Canada
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of goat milk, goat milk yogurt, and goat butter from Canada; Article 509
Dear Mr. Eggena:
In your letter, dated June 22, 1999, you requested a ruling on the status of goat milk, goat milk yogurt, and goat butter from Canada under the NAFTA.
The merchandise is described thus:
1. "Tournevent Goat Milk - 2 % M.F." The ingredients are pasteurized goat milk, vitamins A and D, and folic acid. The fat content on a dry basis is 2 percent. The packaging will be in one liter cartons. In your correspondence you indicate that all ingredients will be of Canadian origin.
"Tournevent Goat Milk - 3.25 % M.F." The ingredients are pasteurized goat milk, vitamins A and D, and folic acid. The fat content on a dry basis is 3.25 percent. The packaging will be in one liter cartons. All ingredients will be of Canadian origin.
2. "Tournevent Goat Milk Yogurt" will be available in three flavors - plain, peach, and strawberry. The plain flavor will contain pasteurized, ultrafiltrated goat milk, active bacterial cultures, and lactase. The peach flavor will contain pasteurized, ultrafiltrated goat milk, sugar, peaches, passion fruit, active bacterial cultures, natural flavoring, starch, pectin, citric acid, and lactase. The strawberry flavor will contain pasteurized, ultrafiltrated goat milk, sugar, strawberries, active bacterial cultures, natural flavoring, pectin, citric acid, and lactase. The fat content on a dry basis will be 3.2 percent. The packaging will be in 375 gram safety sealed containers. All ingredients will be of Canadian origin. The products will be sold in retail and food service outlets.
3. "Tournevent Goat Butter." The ingredients are goat milk cream and sea salt. The fat content
on a dry basis is 80 percent. The moisture content calculated by weight of non-fatty matter is 16.5 percent. The packaging will be in 250 gram blocks. All ingredients will be of Canadian origin.
The applicable subheading for "Tournevent Goat Milk - 2% M.F." and "Tournevent Goat Milk - 3.25% M.F." (item #1) will be 0401.20.2000, Harmonized Tariff Schedule of the United States (HTS), which provides for milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 1 percent but not exceeding 6 percent, for not over 11,356,236 liters entered in any calendar year. The general rate of duty will be 0.44 cents per liter.
If the tariff rate quota is full, the applicable tariff provision for "Tournevent Goat Milk - 2% M.F." and "Tournevent Goat Milk - 3.25% M.F." (item #1) will be 0401.20.4000, HTS, which provides for milk and cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 1 percent but not exceeding 6 percent, other. The general rate of duty will be 1.5 cents per liter.
The applicable subheading for "Tournevent Goat Milk Yogurt" (item #2) will be 0406.10.9500, HTS, which provides for cheese and curd, fresh (unripened or uncured) cheese, including whey cheese, and curd, other, other, other, other. The general rate of duty will be 8.8 percent ad valorem.
The applicable subheading for "Tournevent Goat Butter" (item #3), if entered under quota, will be 0405.10.1000, HTS, which provides for butter and other fats and oils derived from milk; dairy spreads, butter, described in additional U.S. note 6 to chapter 4 and entered pursuant to its provisions. The general rate of duty will be 12.3 cents per kilogram.
The applicable subheading for "Tournevent Goat Butter" (item #3), if entered outside the quota, will be 0405.10.2000, HTS, which provides for butter and other fats and oils derived from milk; dairy spreads, butter, other. The rate of duty will $1.586 per kilogram. In addition, products classified in subheading 0405.10.2000, HTS, are subject to additional duties based on their value, as described in subheadings 9904.04.09 - 9904.04.21. However, U.S. Note 1 to Subchapter IV, Chapter 99, states, "Goods of Canada or Mexico imported into the United States shall not be subject to any of the provisions, duties or limitations of this subchapter." Accordingly, since "Tournevent Goat butter" is a product of Canada, the additional duties provided for in subheadings 9904.04.09 - 9904.04.21 shall not apply (these subheadings fall within Subchapter IV).
Products classifiable in subheadings 0401.20.2000, HTS, 0401.20.4000, HTS, 0405.10.1000, HTS, or 0406.10.9500, HTS, being wholly obtained or produced entirely in the territory of Canada, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
An import license, issued to the importer by the United States Department of Agriculture, will be required at the time that goat milk butter (item #3) is entered for consumption into the United States. Questions regarding licensing procedures and applications for licenses to import dairy products subject to quota should be addressed to:
Import Quota Manager for Dairy Products
STOP 1029/Room 5531-S
U.S. Department of Agriculture
1400 Independence Avenue, S.W.
Washington, DC 20250-1029
Importations of milk and milk products are subject to import regulations administered by various U.S. agencies. Requests for 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 Administration
Division of Regulatory Guidance
HFF 314, 200 C Street, S.W.
Washington, DC 20204
Requests for information regarding applicable regulations administered by the U.S. Department of Agriculture may be addressed to that agency at the following location:
A.P.H.I.S., Veterinary Services
Federal Building, Room 756
6505 Belcrest Road
Hyattsville, MD 20782
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR 181).
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Thomas Brady at (212) 637-7064.
Sincerely,
Robert B. Swierupski
Director
National Commodity
Specialist Division