HQ 0950998 - Classification of Colored Non Pareil Seeds and Colored Sugars - United States International Trade Commision Rulings

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HQ 950998

FEBRUARY 3,1992

CLA-2 CO:R:C:F 950998 JGH

CATEGORY: CLASSIFICATION

TARIFF NO.: 1701.91.2125

Mr. Peter S. Hirsch
Paulaur Corporation
South Gold Industrial Park
2 Marlen Drive
Robbinsville, New Jersey 08691

RE: Classification of Colored Non Pareil Seeds and Colored Sugars

Dear Mr. Hirsch:

Your letter of January 9, 1992, concerns the tariff and quota status of colored non pareil seeds and colored sugar from Brazil under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

In a ruling you received from the Customs Service at New York ( 869115) dated December 11, 1991, the non pareil seeds were described as containing 50.7 percent starch, 44.8 percent sugar, and 4.5 percent moisture and color. The colored sugar was said to be virtually 100 percent sucrose with food colors. The products were to be imported in 50 to 100 pound bags or in 300 pound drums. Since they were colored sugar products of Brazil, and not to be further refined and improved in quality, following U.S. note 3(a) and (b) to chapter 17, HTSUS, the ruling stated that they would be classified and subject to the tariff-rate quota allotment for Brazil in subheading 1701.91.2125, HTSUS. The rate of duty is 1.406 cents per kilogram less 0.020668 cent per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 0.943854 cent per kilogram. For colored non pareil seeds and colored sugar not entitled to the quota allotment, classification would be in subheading 1701.91.2225, HTSUS, with a rate of duty of 37.386 cents per kilogram less 0.529 cent per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 24.161 cents per kilogram.

In addition, the ruling pointed out that sugar products classifiable under these two subheadings, which are not to be further refined or improved in quality, are subject to an additional agricutural license fee of 2.2 cents per kilogram.

ISSUE:

Classification and quota status of colored non pareil seeds and colored sugars from Brazil.

LAW AND ANAlYSIS:

Essentially it is your request that these products be classified at a higher rate of duty and be made subject to an absolute quota. You note that these products may be produced far cheaper in Brazil than in the United States, and as a result an importer has a price advantage over the domestic producer. You suggest, therefore, that the products be classified in subheading 1701.91.2225, HTSUS, which has a higher rate of duty.

Effective October 1, 1990, pursuant to international obligations, the United States replaced the absolute sugar quota with the two-tiered tariff rate quota. Brazil is one of many designated countries which has a quota allocation. Under such an allocation, sugar from Brazil classifiable in the subheading is required to be entered at the lower rate of duty (1701.91.21) until the quota allocation is filled. Imports of Brazilian sugar in excess of the allocation would, of course, be classified in subheading 1701.91.2225, HTSUS, at the higher rate. However, Customs has no authority to assess the higher rate of duty until the quota allotment is filled.

Since the sugar quota program is administered by the U.S. Department of Agriculture, it is suggested that you discuss the possibility of changing the quota status of these sugar products with that agency.

Sincerely,

John Durant, Director

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