CLA-2-18:RR:NC:SP:232 F80398
Mr. Bradley M. Menard
Fritz Starber Inc.
410, St-Nicolas
Bureau 300
Montreal, Quebec
Canada, H2Y 2P5
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a Confectionery Coating from Canada; Article 509
Dear Mr. Adrien:
In your letter dated November 16, 1999 you requested a ruling on the status of confectionery coating from Canada under the NAFTA.
Information was submitted with your request dated September 1, 1999. Samples were included with your initial request dated July 20, 1999. The subject merchandise is CF-5334 102D and is described as a chocolate flavored confectionery coating. The product is stated to contain 46 percent to 48 percent sugar, 29 percent to 31 percent partially hydrogenated palm kernel oil, 9 percent to 11 percent cocoa , 8 percent to 10 percent cocoa processed with alkali, and small quantities of various other ingredients.
The various cocoa powders have a fat content of 10 to 12 percent. As indicated in the information submitted with your letter dated September 1, 1999, it is understood that the cocoa powders are produced in Holland or Singapore. They are also produced in the United States and Canada from cocoa beans from the Ivory Coast. The balance of the ingredients originate in the United States or Canada. The confectionery coatings are produced in Canada and are shipped in liquid form in tanks holding approximately 40,000 pounds. They are used to coat cakes, cookies, and similar products.
The applicable tariff provision for the CF-5334 102D chocolate flavored confectionery coating will be 1806.20.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Chocolate and other food preparations containing cocoa: Other preparations in blocks, slabs or bars, weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg…Confectioners’ coatings and other products (except confectionery) containing by weight not less than 6.8 percent non-fat solids of the cocoa bean nib and not less than 15 percent of vegetable fats other than cocoa butter. The general rate of duty will be 2.1 percent ad valorem. Effective January 1, 2000, the general rate of duty will 2 percent ad valorem.
Each of the non-originating materials used to make the CF-5334 102D chocolate flavored confectionery coating has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/18. The chocolate flavored confectionery coating will be entitled to a free 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 John Maria at 212-637-7059.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division