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

NY B86014 June 5, 1997 CLA-2-04:RR:NC:2:231 B86014 CATEGORY: Classification TARIFF NO.: 0402.29.1000; 0402.29.5000 Mr. Clark Bien Total Foods Corporation 6018 West Maple Road, Suite 888 West Bloomfield, MI 48322 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a dairy product from Canada; Article 509 Dear Mr. Bien: In your letter, dated May 24, 1997, you requested a ruling on the status of a dairy product from Canada under the NAFTA. The product is a skim milk blend. The ingredients will be 95 percent skim milk powder (containing 3 percent butterfat) and 5 percent lactose. In your correspondence you indicate that the product will be manufactured in Canada from Canadian milk powder, and either U.S. or non-NAFTA lactose. The mix will be used in the manufacture of confectionery and dairy products. The applicable subheading for the skim milk blend with lactose, if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 0402.29.1000, 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 $1.202 per kilogram, plus 16.2 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. Each of the non-originating materials used to make the skim milk blend with lactose has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)(4). Upon compliance with all applicable laws, regulations, and agreements under NAFTA, articles from Canada, if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 0402.29.1000, HTS, and will be subject to a 1.7 percent ad valorem rate of duty. 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 $1.202 per kilogram, plus 16.2 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. Importations of milk and milk products are subject to import regulations administered by various U.S. agencies. 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 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, Gwenn Klein Kirschner Chief, Special Products Branch National Commodity Specialist Division