NY 0854369 - The tariff classification of various hot chocolate drink mixes from Canada. - United States International Trade Commision Rulings

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NY 854369
AUG 02 1990

CLA-2-18:S:N:N1:232-854369

CATEGORY: CLASSIFICATION

TARIFF NO.: 1806.20.8030; 1806.90.0030; 1806.90.0060

Mr. David M. Blake
C. J. Tower, Inc.
128 Dearborn Street
Buffalo, NY 14207-3198

RE: The tariff classification of various hot chocolate drink mixes from Canada.

Dear Mr. Blake:

In your letter dated May 1, 1990, with additional information submitted in a letter dated July 13, 1990, you requested a tariff classification ruling on behalf of your client, Kingsmill Foods, Scarborough, Ontario, Canada.

Your query concerns the classification of Gourmet Hot Chocolate, Vending Hot Chocolate and Lo-Cal Hot Chocolate Mix, all of which are dry, powdered hot chocolate mixes from Canada. The Gourmet Hot Chocolate is composed of 43 percent sugar, 10 percent cocoa, 45 percent creamer and less than 2 percent salt and flavor. It is available in three flavors -- Bavarian, Irish Cream and Cointreau, and is packaged in 12 ounce retail cans. The Vending Hot Chocolate is composed of 59 percent sugar, 28 percent whey powder, 2 percent creamer, 10 percent cocoa and less than 1 percent salt and flavor. It is available in 2 pound pouches or 250 pound drums, both intended for use in vending machines dispensing hot chocolate. The Lo-Cal Hot Chocolate Mix is composed of 40 percent skim milk, 35 percent whey solids, 20 percent cocoa, 4 percent sodium caseinate and less than 1 percent salt, aspartame and flavor. It is available in 1 ounce pouches and 2 pound bags, and is also intended for use in vending machines dispensing hot chocolate. All three hot chocolate mixes contain less than 5.5 percent by weight of butterfat.

The applicable subheading for the Gourmet Hot Chocolate will be 1806.90.0060, Harmonized Tariff Schedule of the United States (HTS), which provides for chocolate and other food preparations containing cocoa...other...subject to quotas established pursuant to section 22 of the Agricultural Adjustment Act, as amended...provided for in subheading 9904.60.60. The duty rate will be 7 percent ad valorem.

The applicable subheading for the Lo-Cal Hot Chocolate Mix and the Vending Hot Chocolate (2 pound size only) will be 1806.90.0030, HTS, which provides for chocolate and other food preparations containing cocoa...other...subject to quotas established pursuant to section 22 of the Agricultural Adjustment Act, as amended...provided for in subheading 9904.10.75. The duty rate will be 7 percent ad valorem.

The applicable subheading for the Vending Hot Chocolate in the 250 pound drums will be 1806.20.8030, 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...subject to quotas established pursuant to section 22 of the Agricultural Adjustment Act, as amended...provided for in subheading 9904.10.75. The duty rate will be 10 percent ad valorem.

Goods classifiable under subheadings 1806.90.0060 and 1806.90.0030, HTS, which have originated in the territory of Canada, will be entitled to a 5.6 percent ad valorem rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations.

Goods classifiable under subheading 1806.20.8030, HTS, which have originated in the territory of Canada, will be entitled to an 8 percent ad valorem rate of duty under FTA upon compliance with all applicable regulations.

There is no quota allocation whatsoever for any goods provided for in quota subheading 9904.10.75. Therefore, goods covered by this subheading are not permitted entry 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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