The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a chocolate product from Canada; Article 509

NY 806350 January 30, 1995 CLA-2-18:S:N:N7:232 806350 CATEGORY: Classification TARIFF NO.: 1806.20.2400; 1806.20.2800 Mr. Robert V. Tinkham Chicago Sweeteners Incorporated 1700 Higgins Road Suite 610 Des Plaines, Illinois 60018 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a chocolate product from Canada; Article 509 Dear Mr. Tinkham: In your letter dated January 19, 1995 you requested a ruling on the status of chocolate from Canada under the NAFTA. The subject merchandise is stated to contain 40 to 60 percent sugar, 20 to 32 percent whole milk powder and 20 to 40 percent chocolate liquor. The butterfat content ranges from 5.7 to 9.1 percent. The above ingredients are sourced from various countries and will be manufactured into chocolate in Canada. The chocolate will be imported in a liquid paste form in 55 gallon drums or in 40,000 pound tank trucks. It will also be imported in the form of coarse granules in 50, 100 or 2000 pound containers. The applicable subheading for the chocolate, if imported in quantities that fall within the limits described in additional U.S. note 2 to chapter 18, will be 1806.20.2400, Harmonized Tariff Schedules of the United States (HTS), which provides for Chocolate and other food preparations containing cocoa: Other preparations in blocks or slabs 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: Preparations consisting wholly of ground cocoa beans, with or without added cocoa fat, flavoring or emulsifying agents, and containing not more than 32 percent by weight of butterfat or other milk solids and not more than 60 percent by weight of sugar...other ...containing butterfat or other milk solids (excluding articles for consumption at retail as candy or confection)...other, containing over 5.5 percent by weight butterfat...described in additional U.S. note 2 to chapter 18 and entered pursuant to its provisions. The general rate of duty will be 5 percent ad valorem. If the quantitative limits of additional U.S. note 2 to chapter 18 have been reached, and product contains 21 percent or more by weight of milk solids, classification is under subheading 1806.20.2800, HTS, and dutiable at the rate of 60.6 cents per kilogram plus 4.9 percent ad valorem. In addition, products classified in subheading 1806.20.2800, HTS, will be subject to additional duties based on their value as described in subheadings 9904.18.09 to 9904.18.14, HTS. Each of the non-originating materials used to make the chocolate has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/18. The chocolate will be entitled to a 1.5 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This rate will apply only if the chocolate is classified under subheading 1806.20.2400, HTS. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. Sincerely, Jean F. Maguire Area Director New York Seaport