CLA-2-22:OT:RR:NC:N2:232
Matthew Bock
Middleton Shrull & Bock, LLC
100 Tradecenter Dr, Suite 660
Woburn, MA 01801
RE: The tariff classification of a variety of Canned Wines from Spain.
Dear Mr. Bock:
In your letter dated December 26, 2019, you requested a tariff classification ruling on behalf of your client, Artadi USA Importers, LLC (Miami, FL).
The subject merchandise is described as three varieties of Canned Wine: red, white, and rosé.
The wines are made from grapes grown, fermented, and canned in Spain. Each variety of canned wine is imported into the United States in 250 ml cans, in cases of 48 cans per cardboard box. Each canned wine has an alcoholic content of 14 percent by volume. The value of all three wines respectively is $4.25 per liter.
In your letter, you suggest classification under 2204.29.6100, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Wine of fresh grapes, including fortified wines: grape must other than that of heading 2009; Other wine; grape must with fermentation prevented or arrested by the addition of alcohol: Other: Of an alcoholic strength by volume not over 14 percent vol. We disagree with the suggested classification. The CBP regulations you indicated in your request under 27 CFR 24.10 and 19 CFR 134.22 are “meanings of terms” and “General rules for marking of containers or holders”. Both regulations do not control classification and are only permissible to a singular article, not a set of numbers of articles. Classification of a container holding less than 2 liters in subheading 2204.29, HTSUS, is precluded. The instant product of 250 ml “canned wine” does not meet the description.
The applicable subheading for the “red canned wine” will be 2204.21.5040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Wine of fresh grapes, including fortified wines: grape must other than that of heading 2009; Other wine; grape must with fermentation prevented or arrested by the addition of alcohol: In containers holding 2 liters or less: Other: Of an alcoholic strength by volume not over 14 percent vol.: Other…Valued over $1.05/liter: Other: Red: Other. The rate of duty will be 6.3 cents per liter.
The applicable subheading for the “white canned wine” will be 2204.21.5055, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Wine of fresh grapes, including fortified wines: grape must other than that of heading 2009; Other wine; grape must with fermentation prevented or arrested by the addition of alcohol: In containers holding 2 liters or less: Other: Of an alcoholic strength by volume not over 14 percent vol.: Other…Valued over $1.05/liter: Other: White: Other. The rate of duty will be 6.3 cents per liter.
The applicable subheading for the “rosé canned wine” will be 2204.21.5060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Wine of fresh grapes, including fortified wines: grape must other than that of heading 2009; Other wine; grape must with fermentation prevented or arrested by the addition of alcohol: In containers holding 2 liters or less: Other: Of an alcoholic strength by volume not over 14 percent vol.: Other…Valued over $1.05/liter: Other: Other. The rate of duty will be 6.3 cents per liter.
Pursuant to U.S. Note 21 to Subchapter III, Chapter 99, HTSUS, products of Spain classified under subheading 2204.21.5040, 2204.21.5055 and 2204.21.5060 HTSUS, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the applicable Chapter 99 subheading, i.e., 9903.89.34, in addition to subheading 2204.21.5040, 2204.21.5055 and 2204.21.5060 HTSUS listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the website of the Office of the U.S. Trade Representative, which is available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions.
In addition, imports under this subheading will be subject to a Federal Excise Tax (26 U.S.C. 5051). Please be advised that information on Federal Excise Tax, and additional requirements which are imposed on this product by the Alcohol and Tobacco Tax and Trade Bureau, can be obtained by contacting the TTB at: 1310 G Street, NW., Suite 300, Washington, D.C. 20220 Telephone number - 202-453-2000, Email - [email protected].
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.
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 CFR Part 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 Frank Troise at frank.l.troise.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division