The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Confectionery Coatings from Canada; Article 509Dear Mr. Adrien:In your letter dated September 1, 1999 you requested a ruling on the status of confectionery coatings from Canada under the NAFTA.Samples were included with your initial request dated July 20, 1999. The subject merchandise consists of the following white and chocolate flavored confectionery coatings: CF-8701, CF-780, CF-9190 112D, CF-9190, CF-7667 118MP. CF-8701 is stated to contain 67.49 percent sugar, 31.90 percent partially hydrogenated palm kernel oil, and small quantities of various other ingredients. CF-780 contains 50.01 percent sugar, 29.99 percent partially hydrogenated palm kernel oil, 12.51 percent non-fat dry milk, 7.20 percent natural processed cocoa, and small quantities of various other ingredients. CF-9190 112D contains 47.49 percent sugar, 38.79 percent partially hydrogenated palm kernel, cottonseed and palm

NY E87195 September 28, 1999 CLA-2-18:RR:NC:SP:232 E87195 CATEGORY: Classification TARIFF NO.: 1806.20.6000; 1806.20.9900; 2106.90.9400 Mr. Bernard Adrien 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 Confectionery Coatings from Canada; Article 509 Dear Mr. Adrien: In your letter dated September 1, 1999 you requested a ruling on the status of confectionery coatings from Canada under the NAFTA. Samples were included with your initial request dated July 20, 1999. The subject merchandise consists of the following white and chocolate flavored confectionery coatings: CF-8701, CF-780, CF-9190 112D, CF-9190, CF-7667 118MP. CF-8701 is stated to contain 67.49 percent sugar, 31.90 percent partially hydrogenated palm kernel oil, and small quantities of various other ingredients. CF-780 contains 50.01 percent sugar, 29.99 percent partially hydrogenated palm kernel oil, 12.51 percent non-fat dry milk, 7.20 percent natural processed cocoa, and small quantities of various other ingredients. CF-9190 112D contains 47.49 percent sugar, 38.79 percent partially hydrogenated palm kernel, cottonseed and palm oils, 1.00 percent natural processed cocoa and small quantities of various other ingredients. CF-9190 contains 48.39 percent sugar, 36.14 percent partially hydrogenated palm kernel and palm oils, 10.00 percent cocoa and small quantities of various other ingredients. CF-7667 118MP contains 49.13 percent sugar, 36.55 percent partially hydrogenated cottonseed and soybean oils, 6.70 percent natural processed cocoa, 4.50 percent sweet milk whey and small quantities of various other ingredients. The various cocoa powders have a fat content of 10 to 12 percent. 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-9190 112D and CF-9190 confectionery coatings 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. The applicable tariff provision for the CF-780 and CF-7667 118MP confectionery coatings will be 1806.20.9900, HTS, 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…other…other…other…other. The general rate of duty will be 8.8 percent ad valorem. The applicable tariff provision for the CF-8701 white confectionery coating will be 2106.90.9400, HTS, which provides for food preparations not elsewhere specified or included…other…articles containing over 65 percent by dry weight of sugar described in additional U.S. note 2 to chapter 17…other. The rate of duty will be 29.6 cents per kilogram plus 8.8 percent ad valorem. Each of the non-originating materials used to make the chocolate flavored confectionery coatings (CF-780, CF-9190 112D, CF-9190, CF-7667 118MP) has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/18. The chocolate flavored confectionery coatings will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. It is noted that there is no NAFTA rate for the white confectionery coating (CF-8701) classified under subheading 2106.90.9400, HTS. 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