The tariff classification and status under the North American Free Trade Agreement (NAFTA) of Baladi cheese and Labneh cheese from; Article 509

NY G89938 April 20, 2001 CLA-2-04:RR:NC:2:231 G89938 CATEGORY: Classification TARIFF NO.: 0406.10.8400; 0406.10.8800 Mr. Maurice Yammine Phoenicia Products, Inc. 500, rue Wright Ville St-Laurent, Quebec H4N 1M6 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of Baladi cheese and Labneh cheese from; Article 509 Dear Mr. Yammine: In your letter, dated April 1, 2001, you requested a ruling on the status of Baladi cheese and Labneh cheese under the NAFTA. The merchandise is described thus: Baladi cheese is soft, unripened cheese. The ingredients are 96 percent cow’s milk, 3 percent salt, 0.025 percent calcium chloride, 0.012 percent rennet, 0.003 percent potassium sorbate, and trace amounts of bacterial culture. It contains by weight 55 percent moisture and 21 percent milk fat in the dry matter Labneh cheese is soft, white cheese. The ingredients are 97.5 percent cow’s milk, 1.5 percent skim milk powder, 0.88 percent salt, 0.055 percent potassium sorbate, and trace amounts of bacterial culture. It contains by weight 74 percent moisture and 10 percent milk fat in the dry matter. In your correspondence you indicate that the products are manufactured in Canada with Canadian ingredients. The plastic containers and covers are also of Canadian origin. The applicable subheading for Baladi cheese (item 1) and Labneh cheese (item 2), if entered under quota, will be 0406.10.8400, Harmonized Tariff Schedule of the United States (HTS), which provides for cheese and curd, fresh (unripened or uncured) cheese, including whey cheese, and curd, other, other, other, other cheese and substitutes for cheese (except cheese not containing cow’s milk, and soft ripened cow’s milk cheese), described in additional U.S. note 16 to chapter 4 and entered pursuant to its provisions. The general rate of duty will be 10 percent ad valorem. The applicable subheading for Baladi cheese (item 1) and Labneh cheese (item 2), if entered outside the quota, will be 0406.10.8800, Harmonized Tariff Schedule of the United States (HTS), which provides for cheese and curd, fresh (unripened or uncured) cheese, including whey cheese, and curd, other, other, other, other cheese and substitutes for cheese (except cheese not containing cow’s milk, and soft ripened cow’s milk cheese), other. The rate of duty will be $1.509 per kilogram. In addition, products classified in subheading 0406.10.8800, HTS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.06.38 – 9904.06.49. However, U.S. Note 1 to Subchapter IV, Chapter 99, states, “Goods of Canada or Mexico imported into the United States shall not be subject to any of the provisions, duties or limitations of this subchapter.” Accordingly, since Baladi cheese and Labneh cheese are products of Canada, the additional duties provided for in subheadings 9904.06.38 – 9904.06.49 shall not apply (these subheadings fall within Subchapter IV). Products classifiable in subheading 0404.10.8400, HTS, being wholly obtained or produced entirely in the territory of Canada, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. For goods classified in subheading 0404.10.8400, an import license, issued to the importer by the United States Department of Agriculture, will be required at the time that such merchandise is entered for consumption into the United States. Questions regarding licensing procedures and applications for licenses to import dairy products subject to quota should be addressed to: Import Quota Manager for Dairy Products STOP 1029/Room 5531-S U.S. Department of Agriculture 1400 Independence Avenue, S.W. Washington, DC 20250-1029 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 Thomas Brady at 212-637-7064. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division