CLA-2-19:OT:RR:NC:N2:231
Mr. James Roman
Juliana Lim CHB Inc.
18505 S Broadway
Gardena, CA 90248
RE: The tariff classification of Toddler Milk Beverages from Austria
Dear Mr. Roman:
In your letter dated August 20, 2020, you requested a tariff classification ruling on behalf of your client, JSG Organics, LLC (New York, NY).
There are two products under review as follows:
Holle Toddler Goat Milk Drink is composed of organic whole goat milk powder, organic maltodextrin, organic oil mixture (sunflower and rapeseed oils) organic lactose, organic starch, minerals and trace elements, Arachidonic acid (ARA), Docosahexaenoic acid (DHA), and vitamins. The product contains 39.9 percent non-fat milk solids.
Holle Toddler Cow Milk Drink is composed of organic demineralized whey powder, organic skimmed milk powder, organic oil mixture (palm, sunflower and rapeseed oils), organic maltodextrin, minerals and trace elements, Arachidonic acid (ARA), Docosahexaenoic acid (DHA), and vitamins. The product contains 62.3 percent non-fat milk solids.
You have stated that both products are not intended for use as infant formula. They will be fed to toddlers between the ages of 12-72 months. The products will be sold to the wholesaler UNFI, who will subsequently sell the products to the supermarket Whole Foods. Holle Toddler Goat Milk Drink and Holle Toddler Cow Milk Drink will be contained in 800-gram steel tins and packed six per case.
In your letter, you suggest classification of the products under subheading 1901.10.9100 which provides for: “Food preparations of goods of headings 0401 to 0404…Preparations suitable for infants or young children, put up for retail sale: Preparations suitable for young children, put up for retail sale: Preparations suitable for infants or young children, put up for retail sale: Preparations suitable for young children, put up for retail sale: Other.” We disagree. The suggested tariff classification is a ‘basket’ provision. The classification of imported merchandise in a ‘basket’ provision is appropriate only when there is no tariff category that covers the merchandise more specifically.
The applicable subheading for the Holle Toddler Goat Milk Drink and Holle Toddler Cow Milk Drink, if entered while the tariff-rate quota remains open, will be 1901.10.5400, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Food preparations of goods of headings 0401 to 0404…Preparations suitable for infants or young children, put up for retail sale: Preparations suitable for young children, put up for retail sale: Dairy products described in additional U.S. note 1 to chapter 4: Dairy preparations containing over 10 percent by weight of milk solids: Described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions.” The rate of duty will be 16 percent ad valorem.
The applicable subheading for the Holle Toddler Goat Milk Drink and Holle Toddler Cow Milk Drink, if entered after the tariff-rate quota has closed, will be 1901.10.5600, HTSUS, which provides for: “Food preparations of goods of headings 0401 to 0404…Preparations suitable for infants or young children, put up for retail sale: Preparations suitable for young children, put up for retail sale: Preparations suitable for infants or young children, put up for retail sale: Preparations suitable for young children, put up for retail sale: Dairy preparations containing over 10 percent by weight of milk solids: Other.” The rate of duty will be $1.035/kg+13.6 percent.
Products classified in subheading 1901.10.5600, HTSUS, are also subject to additional safeguard duties based on their value, as described in subheadings 9904.04.50-9904.05.01.
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 the 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 Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division