CLA-2-22:OT:RR:NC:N2:232
Krista Milne
Johnson Brothers Liquor Co.
1999 Shepard Road Saint Paul, MN 55116
RE: The tariff classification of Ouzo of from Greece
Dear Ms. Milne:
In your letter dated May 8, 2023, you requested a tariff classification ruling on behalf of your client, International Packaging DBA Prestige Beverage Group. An ingredients breakdown, manufacturing flowchart and Alcohol and Tobacco Tax and Trade Bureau (TTB) Certificate of Label Approval were included with your inquiry.
The subject merchandise is described as Ouzo of Plomari Isidoros Arvanitis. It is said to contain 52.6 percent anise distillate, 45 percent water, and 1.9 percent sugar. The anise distillate is produced by distilling aniseed and other seeds and spices (fennel and mastic gum) in the presence of alcohol of agricultural origin and water. The anise distillate is said to contain 76 percent alcohol, 23.1 percent water, 0.6 percent aniseed essential oil, 0.3 percent fennel essential oil, and trace amounts of mastic gum essential oil. Ouzo of Plomari Isidoros Arvanitis is packaged in 750 ml, 200 ml, and 50 ml glass or plastic bottles (depending on size). It has an alcohol by volume content of 40 percent.
In your letter you suggest that the product is classified in subheading 2208.70.0030, HTSUS, the provision for liqueurs and cordials. We disagree.
The industry standards of identity for cordials and liqueurs indicate that liqueurs or cordials must contain “sugar, dextrose, or levulose, or a combination thereof, in an amount not less than 2.5 percent by weight of the finished product” as defined by Title 27 (Alcohol, Tobacco Products and Firearms) of the Code of Federal Regulations, administered by the Alcohol and Tobacco and Tax and Trade Bureau (“TTB”) of the United States Department of the Treasury. See 27 C.F.R. § 5.22(h). Furthermore, CBP has recognized that to be classified as cordials or liqueurs, the imported spirituous products must contain a minimum of 2.5 percent sugar content. See, e.g., NY J88195, dated September 17, 2003; Headquarters Ruling Letter (“HQ”) 085902, dated February 12, 1990.
Under the facts presented, the product at issue, which contains 1.9 percent sugar content, does not meet the requisite sugar content to be classified as a liqueur or cordial because it contains under 2.5 percent sugar content. Therefore, under GRI 1, Ouzo of Plomari Isidoros Arvanitis does not meet the terms of the subheading for liqueurs and cordials.
Since the product does not fall under any of the provisions in subheadings 2208.20-2208.70, HTSUS, it is classified under the basket provision provided in 2208.90, HTSUS. This comports the guidance provided in EN 22.08 which covers, eo nomine, absinth under heading 2208, HTSUS, as alcoholic aperitives. Accordingly, we find that Ouzo of Plomari Isidoros Arvanitis is classified in subheading 2208.90.7500, HTSUS, which provides for “Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 percent vol.; spirits, liqueurs and other spirituous beverages: Other: Other: Spirits: Other.”
The applicable subheading for Ouzo of Plomari Isidoros Arvanitis will be 2208.90.7500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 percent vol.; spirits, liqueurs and other spirituous beverages: Other: Other: Spirits: Other. The rate of duty will be free.
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 at https://hts.usitc.gov/current.
Imports under this subheading may be subject to Federal Excise Tax (26 U.S.C. 5001, 26 U.S.C. 5041 or 26 U.S.C. 5051). Additional requirements may be imposed on this product by the Alcohol and Tobacco Tax and Trade Bureau (TTB). You may contact the TTB at the following number: (1-866-927-2533), [email protected]. Written requests may be addressed to: Alcohol and Tobacco Tax and Trade Bureau, Advertising, Labeling and Formulation Division, 1310 G Street NW, Box 12, Washington, DC 20005.
This merchandise is subject to the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (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 and Border Protection 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, please contact National Import Specialist Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division