NY 0845960 - The tariff classification of freeze-dried, grated Skim Milk cheese from Denmark. - United States International Trade Commision Rulings

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NY 845960
November 21, 1989

CLA-2-04:S:N:N1:229

CATEGORY: CLASSIFICATION

TARIFF NO.: 0406.20.6060 (9904.10.54)

Mr. Louis A. Marino
Director of Sales - East Zone
Universal Foods Corporation
700 C. Lake Street
P.O. Box 367
Ramsey, NJ 07446

RE: The tariff classification of freeze-dried, grated Skim Milk cheese from Denmark.

Dear Mr. Marino:

In your letter dated September 22, 1989, you requested a tariff classification ruling on behalf of your Danish supplier, F. Uhrenholt A/S.
The Danish supplier states that the product will consist of Skim milk cheese from a third country which, after being imported into Denmark, will be processed as follows. The cheese is first grated, then freeze-dried. (It may also be granulated as a third process.) The moisture content of the final product will be a maximum of 3 percent by weight, but normally 1 to 2 percent. The fat in the dry matter will be approximately 0.5 to 2.0 percent. A sample of freeze-dried Skim Milk cheese, forwarded with your inquiry, consisted of small white chunks of dried cheese powder. Laboratory analysis indicated a moisture content of 7.7 percent, fat in the dry matter of 2.3 percent, protein of 74.9 percent, salt of 4.6 percent, and a pH of 5.4.

The applicable subheading for freeze-dried GRATED SKIM MILK CHEESE will be 0406.20.6060, Harmonized Tariff Schedule of the United States (HTS), which provides for Grated or powdered cheese of all kinds:...Other, including mixtures of the above:...Other:...Other:...Containing cow's milk. The rate of duty will be 10 percent ad valorem.

Since the grating and drying of this product in Denmark would not result in a new and different commercial product,--that is, the dried and grated product remains SKIM MILK CHEESE--the country of origin of this product will be the country of production of the original Skim Milk cheese. Accordingly, if F. Uhrenholt produces this product from Skim Milk cheese which is manufactured in another member country of the European Economic Community, then the cheese will be considered a product of that EEC country; and, since the EEC is considered a single entity for purposes of quota allocation, the dried and grated cheese would, on importation, be considered a direct shipment from the EEC, in accordance with U.S. Department of Agriculture regulations which require that licensed cheese be imported directly (on a through bill of lading) from the country of origin. Note Title 7, Part 6.27, Code of Federal Regulations (7 C.F.R. 6.27) which states, in subparts (c)(1) and (c)(2) to that part, that articles entered under license must be accompanied by:

(1) An invoice from a seller in the country of origin to a purchaser in the United States and a through bill of lading from the country of origin to the United States, or,

(2) If the seller is not located in the country of origin, a through bill of lading from the country of origin to the United States and a certificate of origin issued in the country of origin which shall indicate the United States as the destination of the merchandise and state the quantity and description of the merchandise in the shipment.

Should the dried and grated cheese be produced from Skim Milk cheese which is the product of a third country other than an EEC member country, then the importation of this product, which has been processed in Denmark, would not meet the requirement of shipment, without diversion, from the country of origin directly to the United States, as required by the regulations. Accordingly, such cheese would be precluded from importation into the United States.

Articles classifiable in HTS subheading 0406.20.6060 are subject to quota quantity restrictions listed in subchapter IV of Chapter 99 in HTS subheading 9904.10.54, which limits the amount of such cheese which may be imported from the European Economic Community to an annual quantity of 20,456,000 kilograms (of which 353,000 are reserved for Portugal). Additionally, an import license, issued to the importer by the United States Department of Agriculture, will be required at the time such merchandise is entered for consumption into the United States.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director

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