CLA-2-04:RR:NC:2:231 C85958
0402.29.5000; 1901.90.4200; 1901.90.4300
Mr. George Kampouris
G. Van Kam Trading Company Limited
4920 De Maisonneuve W., #11
Montreal, Quebec H3Z 1N1
Canada
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA) of dairy products from
Canada; Article 509.
Dear Mr. Kampouris:
In your letter, dated March 23, 1998, you requested a ruling
on the status of dairy products from Canada under the NAFTA.
The products are described thus:
1. "Product A" is a homogeneous, dry blend of 90 percent nonfat
dry milk, 5 percent dry whole milk, and 5 percent sugar. It
contains, by weight, 47 percent naturally occurring lactose, 31-33 percent protein, 7-8 percent ash, 4.5-5.5 percent sugar, 4
percent moisture, and 2 percent butterfat. It will be packed in
25 kilogram or 50 pound bags.
2. "Product B" is a homogeneous, dry blend of 90 percent nonfat
dry milk, 5 percent dry whole milk, and 5 percent lactose. It
contains, by weight, 52 percent lactose (comprised of 47 percent
naturally occurring lactose and 4.5-5.5 percent added lactose),
31-33 percent protein, 7-8 percent ash, 4 percent moisture, and 2
percent butterfat. It will be packed in 25 kilogram or 50 pound
bags.
3. "Product C" is a homogeneous, dry blend of dry whole milk and
lactose. It contains, by weight, 40 percent lactose (comprised
of 35 percent naturally occurring lactose and 4.5-5.5 percent
added lactose), 24-28 percent butterfat, 23-27 percent protein, 6
percent ash, and 4 percent moisture. It will be packed in 25
kilogram or 50 pound bags.
4. "Product D" is a homogeneous, dry blend of dry whole milk and
maltodextrin. It contains, by weight, 35 percent naturally
occurring lactose, 24-28 percent butterfat, 23-27 percent
protein, 6 percent ash, 4.5-5.5 percent maltodextrin, and 4
percent moisture. It will be packed in 25 kilogram or 50 pound
bags.
The dairy portion of all products will be wholly sourced
from Canada. The sweetener portion will be of Canadian or other
NAFTA origin. All products will be manufactured by dry blending.
They will be used as ingredients in the manufacture of
confectionery good and other foods.
The applicable subheading for "Product A," "Product B," and
"Product C," if imported in quantities that fall within the
limits described in additional U.S. note 10 to chapter 4, will be
0402.29.1000, Harmonized Tariff Schedule of the United States
(HTS), which provides for milk and cream, concentrated or
containing added sugar or other sweetening matter, in powder,
granules or other solid forms, of a fat content, by weight,
exceeding 1.5 percent, other, described in additional U.S. note
10 to chapter 4 and entered pursuant to its provisions. The
general rate of duty will be 17.5 percent ad valorem. If the
quantitative limits of additional U.S. note 10 to chapter 4 have
been reached, the products will be classified in subheading
0402.29.5000, HTS, and will be dutiable at US $1.169 per
kilogram, plus 15.8 percent ad valorem. In addition, products
classified in subheading 0402.29.5000, HTS, will be subject to
additional duties based on their value, as described in
subheadings 9904.04.50 - 9904.05.01, HTS.
The applicable subheading for "Product D," if the
maltodextrin does not exceed 5 percent by weight (see Explanatory
Note 04.02, HTS, regarding starch), and if imported in quantities
that fall within the limits described in additional U.S. note 8
to chapter 4, will be 0402.21.3000, HTS, which provides for milk
and cream, concentrated or containing added sugar or other
sweetening matter, in powder, granules or other solid forms, of a
fat content, by weight, exceeding 1.5 percent, not containing
added sugar or other sweetening matter, of a fat content, by
weight, exceeding 3 percent but not exceeding 35 percent,
described in additional U.S. note 8 to chapter 4 and entered
pursuant to its provisions. The general rate of duty will be 6.8
cents per kilogram. If the quantitative limits of additional
U.S. note 8 to chapter 4 have been reached, the product will be
classified in subheading 0402.21.5000, HTS, and will be dutiable
at US $1.156 per kilogram. In addition, products classified in
subheading 0402.21.5000, HTS, will be subject to additional
duties based on their value, as described in subheadings
9904.04.31 - 9904.04.39, HTS.
The applicable subheading for "Product D," if the
maltodextrin exceeds 5 percent by weight, and if imported in
quantities that fall within the limits described in additional
U.S. note 10 to chapter 4, will be 1901.90.4200, HTS, which
provides for food preparations of goods of headings 0401 to 0404,
not containing cocoa...not elsewhere specified or
included...other, 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
general rate of duty will be 16 percent ad valorem. If the
quantitative limits of additional U.S. note 10 to chapter 4 have
been reached, the product will be classified in subheading
1901.90.4300, HTS, and will be dutiable at US $1.096 per
kilogram, plus 14.4 percent ad valorem. In addition, products
classified in subheading 1901.90.4300, HTS, will be subject to
additional duties based on their value, as described in
subheadings 9904.04.50 - 9904.05.01, HTS.
Products classifiable in subheadings 0402.21.3000, HTS,
0402.29.1000, HTS, or 1901.90.4200, HTS, being wholly obtained or
produced entirely in the territory of Canada, Mexico, and/or the
United States, will meet the requirements of HTSUSA General Note
12(b)(i), and will therefore be entitled to a free rate of duty
under the NAFTA upon compliance with all applicable laws,
regulations, and agreements.
Importations of milk and milk products are subject to import
regulations administered by various U.S. agencies. Requests for
information regarding labeling regulations administered by the
U.S. Food and Drug Administration may be addressed to that agency
at the following location:
U.S. Food and Drug Administration
Division of Regulatory Guidance
HFF 314, 200 C Street, S.W.
Washington, DC 20204
Requests for information regarding applicable regulations
administered by the U.S. Department of Agriculture may be
addressed to that agency at the following location:
U.S. Department of Agriculture
A.P.H.I.S., Veterinary Services
Federal Building, Room 756
6505 Belcrest Road
Hyattsville, MD 20782
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 CFR 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 Ralph
Conte at (212) 466-5759.
Sincerely,
Robert B. Swierupski
Director
National Commodity
Specialist Division