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

NY G89338 April 10, 2001 CLA-2-18:RR:NC:SP:232 G89338 CATEGORY: Classification TARIFF NO.: 1806.20.8300 Mr. Ronald Friedman Rafi Industries, Inc. 1700 Higgins Road, Suite 610 Des Plains, Illinois 60018 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a chocolate dairy product from Mexico; Article 509 Dear Mr. Friedman: In your letter dated March 23, 2001 you requested a ruling on the status of a chocolate dairy product from Mexico under the NAFTA. A sample was submitted with your request. Information was submitted with your initial request dated February 8, 2001. The subject merchandise will consist of 95 percent anhydrous milk fat and 5 percent chocolate liquor. The anhydrous milk fat and the chocolate liquor will be of non-NAFTA origin. The ingredients will be imported into Mexico where they will be blended, and then packaged in a frozen or liquid form in 50 pound boxes or in one ton tote boxes. The merchandise will be used as an ingredient in the confectionery industry. The applicable subheading for the 95 percent anhydrous milk fat and 5 percent chocolate liquor product will be 1806.20.8300, Harmonized Tariff Schedule 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: other...other...other: Dairy products described in additional U.S. note 1 to chapter 4...other…other. The rate of duty will be 52.8 cents per kilogram plus 8.5 percent ad valorem. Each of the non-originating materials used to make the 95 percent anhydrous milk fat and 5 percent chocolate liquor product have satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/18, and will therefore be entitled to a free rate of duty if entered under the terms of general note 12 of the Harmonized Tariff Schedule of the United States, and imported in quantities that fall within the quantitative limits described in U.S. note 7 to subchapter 6 of chapter 99 HTS pursuant to subheading 9906.18.24. If the quantitative limits of U.S. note 7 to subchapter 6 of chapter 99 have been reached, and if the product is valued not over 59 cents per kilogram, it will be dutiable at the rate of 11.3 cents per kilogram in subheading 9906.18.25, HTS. If valued over 59 cents per kilogram, the rate of duty will be 18.9 percent ad valorem, pursuant to subheading 9906.18.26, HTS, upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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