CLA-2-19:RR:NC:2:228 B85383
Mr. Ray Maggio
Wyeth Nutritionals International
145 King of Prussia Road
Radnor, PA 19087
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of infant formulas from Canada; Article 509
Dear Mr. Maggio:
In your letter dated May 9, 1997 you requested a ruling on the status of infant formulas from Canada under the NAFTA.
Ingredients breakdowns for four items were submitted with your letter. The products are infant formula preparations, in fluid form, two described as milk-based, and two as soy-based, in ready-to-feed and concentrated varieties, heat processed and packed in metal cans containing 385 milliliters. The milk-based, ready-to-feed formula is composed of 66 percent water, 23.6 percent fluid skim milk, 6.2 percent whey, 3.4 percent oil, .7 percent lactose, and .1 percent "micro nutrients." The milk-based concentrate formula is made from 47 percent fluid skim milk, 33 percent water, 12 percent whey, 6.6 percent oil, 1.4 percent lactose, and .19 percent micro nutrients. The soy-based ready-to-feed formula consists of 86.9 percent water, 6.9 percent carbohydrate (75 percent corn syrup solids and 25 percent sucrose), 3.5 percent oil, 2 percent soy isolate, and .7 percent micro nutrients. The soy-based concentrate contains 74.8 percent water 13.5 percent carbohydrate, 6.7 percent oil, 3.9 percent soy isolate, and 1.1 percent micro nutrients.
The milk, whey, lactose, and sucrose are products of Canada. The coconut oil in the oil blend is from the Philippines or a neighboring country. The other oils in the blend are products of the United States, as are the soy protein isolate and corn syrup solids. The micro nutrients are from the United States, Europe and Japan. In Canada, the ingredients are blended in accordance with a specific formula, in a proscribed sequence, homogenized, packed in hermetically sealed cans, and sterilized in continuous retorts.
The applicable subheading for the milk-based concentrate formula, if imported in quantities that fall within the limits described in additional U.S. note 2 to chapter 19, will be 1901.10.1500, Harmonized Tariff Schedule of the United States (HTS), which provides for food preparations of goods of headings 0401 to 0404...preparations for infant use, put up for retail sale...containing over 10 percent by weight of milk solids... other...infant formulas containing oligosaccharides...described in additional U.S. note 2 to this chapter and entered pursuant to its provisions. The rate of duty will be 17.5 percent ad valorem. If the quantitative limits of additional U.S. note 2 to chapter 19 have been reached, the product will be classified in subheading 1901.10.3000 HTS, and dutiable at the rate of $1.126 per kilogram, plus 16.2 percent ad valorem.
The applicable subheading for the milk-based ready-to-feed formula, if imported in quantities that fall within the limits described in additional U.S. note 2 to chapter 19, will be 1901.10.6000, HTS, which provides for food preparations of goods of headings 0401 to 0404...preparations for infant use, put up for retail sale...other...other...infant formulas containing oligosaccharides...described in additional U.S. note 2 to this chapter and entered pursuant to its provisions. The rate of duty will be 17.5 percent ad valorem. If the quantitative limits of additional U.S. note 2 to chapter 19 have been reached, the product will be classified in subheading 1901.10.7500 HTS, and dutiable at the rate of $1.126 per kilogram, plus 16.2 percent ad valorem.
The applicable tariff provision for the soy-based ready-to- feed and concentrate formulas will be 2106.90.9990, HTS, which provides for food preparations not elsewhere specified or included...other...other...canned. The general rate of duty will be 8.2 percent ad valorem.
Each of the non-originating materials used to make these formulas has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/19.1 and 12(t)21.14. The milk-based formulas, when classified in subheadings 1901.10.1500 and 1901.10.6000, will be entitled to a 1.7 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. The soy-based formulas will be subject to a one percent ad valorem rate of duty under the NAFTA, upon compliance with all applicable laws, regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
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 Stanley Hopard at 212-466-5760.
Sincerely,
Gwenn Klein Kirschner
Chief, Special Products Branch
National Commodity
Specialist Division