The tariff classification and status under the North American Free Trade Agreement (NAFTA), of white confectionery coatings from Canada; Article 509

NY I86979 October 17, 2002 CLA-2-21:RR:NC:2:228 I86979 CATEGORY: Classification TARIFF NO.: 2106.90.8200; 2106.90.9997 Mr. Robert V. Tinkham Chicago Sweeteners Incorporated 1700 Higgins Road Suite 610 Des Plaines, IL 60018 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of white confectionery coatings from Canada; Article 509 Dear Mr. Tinkham: In your letter dated September 12, 2002 you requested a ruling on the status of white confectionery coatings from Canada under the NAFTA. Ingredients breakdowns accompanied your letter. Additional information concerning the origin of the ingredients was submitted in an undated letter received by this office on October 7, 2002. White Confectionery Coating A and White Confectionery Coating B are described as products in liquid form, imported tank trucks, used as coatings for bakery products, confections, and ice cream. Coating A is said to be composed of 50-60 percent sugar, 6-10 percent skim milk powder or whey powder, 30-40 percent vegetable oil, and a trace of titanium dioxide. Coating B is said to consist of 50-60 percent sugar, 11-16 percent skim milk powder or whey powder, 25-35 percent vegetable oil, and a trace of titanium dioxide. The sugar is a product of Brazil, skim milk powder a product of New Zealand, and the vegetable oil is a good of Malaysia. The whey powder and titanium dioxide are products of the United States. In Canada, the sugar will be refined and combined with the remaining ingredients, in accordance with the customer’s specifications. The applicable tariff provision for Confectionery Coating B will be 2106.90.8200, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for food preparations not elsewhere specified or included…other…containing over 10 percent by weight of milk solids…other…other. The general rate of duty will be 6.4 percent ad valorem. The applicable tariff provision for Confectionery Coating A will be 2106.90.9997, HTSUSA, which provides for food preparations not elsewhere specified or included… other…other…other…containing sugar derived from sugar cane and/or sugar beets. The general rate of duty will be 6.4 percent ad valorem. Each of the non-originating materials used to make Confectionery Coating A have satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21.14. Confectionery Coating A will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Each of the non-originating materials used to make Confectionery Coating B, when made with whey powder, have satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21.12. Confectionery Coating B made with whey powder will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Confectionery Coating B, when made with skim milk powder, will not qualify for preferential treatment under the NAFTA because one of the non-originating materials used in the production of the good, the skim milk powder, will not undergo the change in tariff classification required by General Note 12(t)/21.12, HTSUSA. 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 Stanley Hopard at 646-733-3029. Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division