Classification of Chocolate Chips

HQ 956971 December 8,1994 CLA-2 CO:R:C:F 956971 JGH CATEGORY: Classification TARIFF NO.: 1806.90.0073 Mr. Patrick E. Mines P. Mines Customs Services 28 Princess Street P.O. Box 1197 Fort Erie, Ontario L2A 5Y2 Canada RE: Classification of Chocolate Chips Dear Mr. Mines: This is in reference to your inquiry on the classification of chocolate chips. FACTS: The chocolate chips are said to contain 87 percent sugar, 10 percent cocoa and 3 percent butterfat. It was not stated how they would be packaged, but it was mentioned that they were intended for personal consumption. ISSUE: Classification of chocolate chips under the Harmonized Tariff Schedule of the United States (HTSUS). LAW AND ANALYSIS: According to the Explanatory Notes to heading 1806, chocolate is composed essentially of cocoa paste or cocoa powder and sugar; vegetable oil may substituted for cocoa paste. Additional ingredients may include milk, coffee, hazelnuts, almonds, orange peel, etc. The heading includes such chocolate food preparations as sugar confectioneries containing cocoa in any proportion (including chocolate nougat), sweetened cocoa powder, chocolate powder, or chocolate spreads. - 2 - HOLDING: If the chocolate chips are packaged for retail sale in containers or immediate packings or a content of not over 2 kilograms, they are classified as other chocolate or other food preparations containing cocoa: put up for retail sale, in subheading 1806.90.0073, HTSUS. The rate of duty is 2.8 percent ad valorem, if the merchandise qualifies as a good of Canada. If the chocolate chips are in containers or immediate packing not over 2 kilograms and not packaged for retail sale, they are classifiable in subheading 1806.90.0093, HTSUS, at the same rate of duty. If the chocolate chips are packaged in containers or immediate packing of a contents exceeding 2 kilograms, they are classifiable in subheading 1806.20.8095, HTSUS. The rate of duty is 4 percent ad valorem, if the merchandise qualifies as good of Canada. Sincerely, John Durant, Director Commercial Rulings Division cc: John Maria