CLA-2-21:OT:RR:NC:N4:228
Ms. Fotini Ioannidis
Silky Foods Pty. Ltd.
L2 71 – 75 City Road
Southbank, Melbourne, Victoria
Australia 3006
RE: The tariff classification and status under the United States-Australia Free Trade Agreement (UAFTA) of a powdered coconut beverage mix from Australia.
Dear Ms. Ioannidis:
In your letter dated March 8, 2016, you requested a ruling on the status of a powdered coconut beverage mix from Australia under the UAFTA.
An ingredients breakdown and manufacturing process accompanied your letter. “CocoVelle” is a powdered coconut beverage mix said to contain 55 percent coconut milk powder, 33 percent organic muscovado sugar, 9 percent organic coconut sugar, 2.5 percent cinnamon, and 0.5 percent nutmeg. The product is blended and packed in Australia from imported ingredients from the Philippines, Sri Lanka, Indonesia, and India. The product will be used by café staff, and private consumers for personal consumption. The product will be packaged in heat-sealed food-grade aluminum bags two ways: for foodservice in 1,000 grams (2.20462 lbs.), and for retail in 220 grams (7.76 oz.), both net packed. The product is marketed as a stand-alone beverage, and it is prepared by mixing with hot milk of any kind to create a creamy hot beverage. It can be added to other beverages to enhance their creaminess and flavor, such as, coffee, hot chocolate, milk-shakes, smoothies, juices, and to food, such as, yogurt, and breakfast cereal muesli, etc.
The applicable subheading for the powdered coconut beverage mix will be 2106.90.9997, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included . . . other . . . other . . . other . . . other . . . other . . . containing sugar derived from sugar cane and/or sugar beets. The general 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 https://hts.usitc.gov/current.
General Note 28(b), HTSUS, sets forth the criteria for determining whether a good is originating under the UAFTA. General Note 28(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UAFTA country under the terms of this note only if –
(i) the good is a good wholly obtained or produced entirely in the territory of Australia or of the United States, or both;
(ii) the good was produced entirely in the territory of Australia or of the United States, or both, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note;
(B) the good otherwise satisfies any applicable regional value content requirement referred to in subdivision (n) of this note; or
(C) the good meets any other requirements specified in subdivision (n) of this note;
and such good satisfies all other applicable requirements of this note;
(iii) the good was produced entirely in the territory of Australia or of the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note; or
(iv) the good otherwise qualifies as an originating good under this note,
and is imported directly into the customs territory of the United States from the territory of Australia.
The merchandise does not qualify for preferential treatment under the UAFTA because none of the above requirements are met.
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 [email protected].
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, U.S. Customs and Border Protection, Regulations & Rulings, 90 K Street N.E. – 10th floor, Washington, DC 20229-1177, Washington, DC 20229-1177.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division