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HQ 087546


November 7, 1990

CLA-2 CO:R:C:G 087546 WAW

CATEGORY: CLASSIFICATION

TARIFF NO.: 1517.90.2040

Mr. J. Roger Erwin
Procter & Gamble Company
Two Procter & Gamble Plaza
Cincinnati, OH 45202-3314

RE: Classification of Crisco shortening

Dear Mr. Erwin:

This letter is in response to your inquiry, dated July 2, 1990, concerning the tariff classification of two Crisco shortening products under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). A sample of the merchandise was not submitted along with your request. You have requested confidential treatment for this request.

FACTS:

The subject merchandise is described as a one pound block of regular Crisco shortening, and a one pound block of butter- flavored Crisco shortening. The regular shortening consists of the following ingredients: 78.3 percent of refined, bleached, and hydrogenated Canola oil, 17.4 percent of refined, bleached, and hydrogenated Malaysian palm oil, and 4.3 percent of refined, bleached, and hydrogenated soybean oil. The butter-flavored shortening contains the same ingredients plus two artificial butter flavors and food coloring. Both of theses products are subjected to the processes of blending and deodorizing.

ISSUE:

Whether the subject merchandise consists of a "mixture" of various vegetable oils under subheading 1517.90.10 or 1517.90.20, HTSUSA.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) set forth the manner in which merchandise is to be classified under the HTSUSA. GRI 1 requires that classification be determined first according to the terms of the headings of the tariff and any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's, taken in order.

The importer maintains that the shortenings are properly classifiable in subheading 1517.90.4080, HTSUSA, which provides for Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, other than edible fats or oils or their fractions of heading 1516: Other: Other: Other, dutiable at 8.8 cents/kilo under the Canadian Free Trade Agreement. The importer further argues that the merchandise is not a mixture of "two or more of the products provided for in headings 1501 to 1515, inclusive" and is therefore precluded from classification under subheadings 1517.90.10 or 1517.90.20, HTSUSA. It is the importer's position that the product is a mixture of hydrogenated oils which are included in Heading 1516, HTSUSA, but further prepared.

We agree that these products are properly classified under Heading 1517, HTSUSA. The Explanatory Notes constitute the official interpretation of the tariff at the international level. The Explanatory Notes to Heading 1517, HTSUSA, specifically refer to "shortenings" as one of the products included within the heading.

Edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, other than edible fats or oils or their fractions of heading 1516; for example, imitation lard, liquid margarine and shortenings (produced from texturised oils or fats).

The importer has suggested that the two shortenings are classified under subheading 1517.90.4080, HTSUSA. However, this subheading only provides for single types of hydrogenated or partially hydrogenated oils (i.e., cottonseed, soybean) or similarly treated fractions of animal or vegetable fats and oils and does not include mixtures of fats or oils. The two subheadings within Chapter 15 which cover mixtures of fats or oils include subheading 1517.90.10, HTSUSA, which covers mixtures containing five percent or more by weight of soybean oil or any fraction thereof, and subheading 1517.90.20, HTSUSA, which covers other mixtures of oils. Both of these subheadings include artificial mixtures of two or more of the products included in headings 1501 to 1515, HTSUSA. Headings 1501 to 1515, HTSUSA, provide for the specific types of animal and vegetable fats and oils which are included in Chapter 15 of the HTS.

Fats and oils which have been hydrogenated may be included under the subheadings of Heading 1517, HTSUSA. The Explanatory Notes to Heading 1517, HTSUSA, state that:

The products of this heading, the fats or oils of which may previously have been hydrogenated, may be worked by emulsification (e.g., with skimmed milk), churning, texturation (modification of the texture or crystalline structure), etc. and may contain small quantities of added lecithin, starch, colouring, flavouring, vitamins, butter or other milkfat (subject to the restrictions in Note 1(c) to this Chapter).

Based on the language of the above Explanatory Note, the sample shortenings can be included under subheadings 1517.90.10, and 1517.90.20, HTSUSA, whether or not they have been hydrogenated. Subheading 1517.90.10, HTSUSA, provides for mixtures of vegetable oils which contain five percent or more by weight of soybean oil. Inasmuch as both the regular and butter- flavored Crisco shortenings consist of less than five percent by weight of soybean oil, and since they are artificial mixtures of fats or oils, it is the determination of this office that the sample merchandise is more properly classified in subheading 1517.90.20, HTSUSA, which provides for artificial mixtures of two or more of the products provided for in headings 1501 to 1515, inclusive: Other: Baking or frying fats: Wholly of vegetable oils.

HOLDING:

Based on the foregoing analysis, both the regular and butter-flavored Crisco shortenings are properly classified in subheading 1517.90.2040, HTSUSA, which provides for artificial mixtures of two or more of the products provided for in headings 1501 to 1515, inclusive: Other: Baking or frying fats: Wholly of vegetable oils. Articles classified in the above subheading are subject to a rate of duty of 10 percent ad valorem. Articles classified under this subheading may qualify for a reduced rate of duty under the United States-Canada Free Trade Agreement provided that the importer satisfies all of the requirements for importation and the articles "originate" in Canada.

Sincerely,

John Durant, Director

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