CLA-2-21:OT:RR:NC:N2:228
Ms. Amanda Hektor
KPMG LLP
Tax
8 Salisbury Square
London EC4Y 8BB
United Kingdom
RE: The tariff classification of fruit juice compound concentrates from Ireland
Dear Ms Hektor:
In your letter dated September 13, 2012, you re-submitted a request for a tariff classification ruling on behalf of Britvic Worldwide Brands Limited (“Britvic”). The original ruling request letters dated February 9 and April 10, 2012, and the additional information printed from email communications dated May 3, May 4, May 16, June 3, and June 19, 2012 in response to Customs and Border Protection (“CBP”) requests were enclosed with your September letter. It is our understanding that your entire ruling request is for prospective transactions.
Ingredients breakdowns, manufacturing flow charts, and labels of the finished soft drinks accompanied each original request letter. The samples, received from the earlier correspondence, were forwarded to the CBP laboratory for analysis. The unused portion of the Apple Compound Concentrate samples was returned to Britvic on July 12, 2012. “Apple Compound Concentrate,” “Berry Burst Compound Concentrate,” “Orange Compound Concentrate,” and “Strawberry and Raspberry Compound Concentrate” are fruit juice compounds in a concentrated form for use in the preparation of juice containing soft drinks, each serving as a base ingredient for certain soft drinks, containing the flavoring ingredients which characterize a particular beverage. They are unfit for immediate consumption at the time of importation. They will be imported in bulk for further processing (such as diluting), and then the resulting soft drinks will be bottled and labeled for retail sale.
The Apple Compound Concentrate is a brown liquid, composed of apple juice concentrate, flavoring (natural apple flavoring and ethanol), malic acid solution (malic acid anhydrous and water), preservative solution (potassium sorbate, sodium metabisulphite, and water), and ascorbic acid solution (ascorbic acid and water). The Berry Burst Compound Concentrate is a red liquid, consisting of apple juice concentrate, blackcurrant juice concentrate, flavoring (natural flavoring and propylene glycol), citric acid solution (citric acid anhydrous and water), preservative solution (potassium sorbate, sodium metabisulphite, and water), and ascorbic acid solution (ascorbic acid, water, and dimethylpolysiloxane). The Orange Compound Concentrate, an orange liquid, contains orange juice concentrate, flavoring (natural flavoring, propylene glycol, and ethanol), citric acid solution (citric acid anhydrous and water), preservative solution (potassium sorbate, sodium metabisulphite, and water), and ascorbic acid solution (ascorbic acid, water, and color). The Strawberry and Raspberry Compound Concentrate is a red liquid containing apple juice concentrate, strawberry juice concentrate, raspberry juice concentrate, flavoring (natural flavoring, propylene glycol, and ethanol), malic acid solution (malic acid anhydrous and water), preservative solution (potassium sorbate, sodium metabisulphite, and water), and ascorbic acid solution (ascorbic acid, water, and dimethylpolysiloxane).
In your letters, you state “flavorings and stabilizer have been ‘added in such a quantity that the balance of different constituents as found in the natural juice is clearly upset; in such case the product has lost its original character’ and the flavoring and stabilizers are not added to the compound concentrates to ‘restore the constituents destroyed or damaged during the manufacturing processes’.” Laboratory analysis found the Apple Compound Concentrate had a brix value of 37.8 and contained 5.67 percent alcohol on a volume basis or 4.52 percent by weight. The Berry Burst Compound Concentrate had a brix value of 41.9 and an alcohol content of less than 0.25 percent by volume. The Orange Compound Concentrate had a brix value of 37.17 and an alcohol content of 1.1 percent by volume or 0.88 percent by weight. The Strawberry and Raspberry Compound Concentrate had a brix value of 38.57 and contained 3.89 percent of alcohol by volume or 3.09 percent by weight.
In your letters, you suggested the Orange Compound Concentrate and the Apple Compound Concentrate should be classified in subheading 2106.90.4800 and 2106.90.5200, Harmonized Tariff Schedule of the United States (HTSUS), respectively, the provisions for orange juice fortified with vitamins and any single fruit juice fortified with vitamins. You suggested the Berry Burst Compound Concentrate and the Strawberry and Raspberry Compound Concentrate should be classified in subheading 2106.90.5400, HTSUS, the provision for mixtures of juices fortified with vitamins. We do not agree. Based on the products' ingredient composition and process instructions for making finished beverages, they will be classified elsewhere.
The applicable subheading for the Apple Compound Concentrate, the Orange Compound Concentrate, and the Strawberry and Raspberry Compound Concentrate will be 2106.90.1200, HTSUS, which provides for food preparations not elsewhere specified or included ... other ... compound alcoholic preparations of an alcoholic strength by volume exceeding 0.5 percent vol., of a kind used for the manufacture of beverages … containing not over 20 percent of alcohol by weight. The general rate of duty will be 4.2 cents per kilogram plus 1.9 percent ad valorem. In addition, these products may be subject to Federal Excise Tax (26 U.S.C. 5001 or 26 U.S.C. 5041).
The applicable subheading for the Berry Burst Compound Concentrate will be classified in subheading 2106.90.9973, HTSUS, which provides for food preparations not elsewhere specified or included … other … other … preparations for the manufacture of beverages… other. The rate of duty will be 6.4 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Bruce N. Hadley, Jr. at (646) 733-3029.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division