CLA-2-04:RR:NC:2:231 F83398
Mr. Graeme Honeyfield
Glinso Foods
3554 Round Barn Boulevard, Suite 310
Santa Rosa, CA 95403
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of sweetened, recombined condensed milk manufactured in Canada from dairy ingredients, sugar, and water originating in Australia, Canada, the European Union, New Zealand, and Norway; Article 509
Dear Mr. Honeyfield:
In your letter, dated February 17, 2000, you requested a ruling on the status of sweetened, recombined condensed milk manufactured in Canada from dairy ingredients, sugar, and water originating in Australia, Canada, the European Union, New Zealand, and Norway under the NAFTA.
The merchandise, “Recombined, Sweetened Condensed Milk,” is a product containing a combination of dairy ingredients and sugar that achieves a typical analysis of 76 percent total solids, 43 percent sugar, 33 percent milk solids, 24 percent water, and 9 percent milk fat. The pH will be 6.3. The dairy components will be selected from a list of ingredients depending on availability and customers’ requirements. The product may contain any of the following ingredients either separately or in combination to achieve the typical analysis cited above:
nonfat dry milk powder, whole milk powder, milk fat, butter (minimum 80 percent milk fat), cream (fresh or frozen, 20-80 percent milk fat), evaporated milk, condensed milk, and milk (pasteurized, Canadian skim milk or whole milk)
sugar in solid or syrup form (sucrose, lactose, corn syrup solids, and/or glucose)
premixes of any of the aforementioned ingredients
water
There will be neither preservatives, nor neutralizing agents present in the product.
“Recombined, Sweetened Condensed Milk” is produced from freshly concentrated ingredients or by recombining a range of liquid, dry, refrigerated and/or frozen, pure dairy ingredients with sugar to achieve the desired typical composition.
The dairy ingredients will originate in Australia, Canada, the European Union, New Zealand, and Norway. The nondairy ingredients will be supplied on a global basis, including Canada. The product will be recombined in Canada
The condensed milk will be imported in a range of packaging, including 25 kilogram plastic lined cartons, 600-1,000 kilogram bulk or non-carton bins and bulk tankers. The packaging will not be airtight. Depending on the packaging, the product will be shipped refrigerated or at ambient temperature.
This product will be used as an ingredient in the manufacture of confectionery products, ice cream, or other food items.
The applicable subheading for “Recombined, Sweetened Condensed Milk,” if entered under quota, will be 0402.99.7000, Harmonized Tariff Schedule of the United States (HTS), which provides for milk and cream, concentrated or containing added sugar or other sweetening matter, other, other, described in additional U.S. note 10 to the chapter and entered pursuant to its provisions. The general rate of duty will be 17.5 percent ad valorem.
The applicable subheading for “Recombined, Sweetened Condensed Milk,” if entered outside the quota, will be 0402.99.9000, HTS, which provides for milk and cream, concentrated or containing added sugar or other sweetening matter, other, other, other. The general rate of duty will be 46.3 cents per kilogram, plus 14.9 percent ad valorem. In addition, products classified in subheading 0402.99.9000, HTS, will be subject to additional safeguard duties based on their value, as described in subheadings 9904.04.50 – 9904.05.01, HTS.
The condensed milk, if wholly obtained or produced entirely in the territories of Canada, Mexico, and/or the United States, will meet the requirements of HTSUSA General Note 12(b)(i). Alternately, if the sugar (sucrose, lactose, corn syrup solids or glucose) is sourced in a non-NAFTA country, the condensed milk will meet the requirements of HTSUSA General Note 12(t)(4). Under either General Note these goods will be entitled to a free rate of duty under the NAFTA.
HTSUSA General Note 12(t)/4 states that for a substantial transformation to be effected, there must be a “change to heading 0401 through 0410 from any other chapter, except from tariff items 1901.90.32, 1901.90.33, 1901.90.34, 1901.90.36, 1901.90.38, 1901.90.42 or 1901.90.43.”
Accordingly, condensed milk that is manufactured in Canada from certain dairy ingredients (specifically, dairy ingredients classifiable in headings 0401 through 0410 or in subheadings 1901.90.32, 1901.90.33, 1901.90.34, 1901.90.36, 1901.90.38, 1901.90.42 or 1901.90.43) originating in Australia, the European Union, New Zealand or Norway does not qualify for preferential treatment under the NAFTA because one of more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by HTSUSA General Notes 12(b)(ii)(A) and 12(t)/4.
Importations of milk and milk products are subject to import regulations administered by various U.S. agencies. Requests for information regarding applicable 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:
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 Thomas Brady at 212-637-7064.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division