NY B80510 - The tariff classification and status under the North American Free Trade Agreement (NAFTA) of modified whey from Mexico; Article 509 - United States International Trade Commision Rulings

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NY B80510 January 7, 1997

CLA-2-04:RR:NC:2:231 B80510

CATEGORY: CLASSIFICATION

TARIFF NO.: 0404.10.1500

Mr. Robert Seely
Katten, Muchin, and Zavis
525 West Monroe Street, Suite 1600
Chicago, IL 60661-3693

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of modified whey from Mexico; Article 509

Dear Mr. Seely:

In your letter, dated December 17 1996, on behalf of your client, Kerry Ingredients, Beloit, WI, you have requested a ruling on the status of modified whey from Mexico under the NAFTA.

The product is a fat-filled modified whey product. The ingredients are 70 percent whey butter or whey butter oil (from Canada), 20 percent whey (from the U.S.), 8.5 percent whey protein concentrate 34 (from the U.S.), and 1.5 percent sodium phosphate (from Mexico). The product will be imported from Mexico. The principal use is as an ingredient in cheese and butter powder that the importer manufactures domestically.

During the manufacturing process, each ingredient is liquified for wet-blending. The blend of ingredients is pasteurized, homogenized, and spray dried. The homogenous spray-dried powder cannot be physically separated into its constituent materials. The fat-filled whey powder resulting from this blending process is imported into the U.S. in 50 pound poly-lined bags or 1,500 pound poly-lined totes.

The applicable subheading for the modified whey product will be 0404.10.1500, Harmonized Tariff Schedule of the United States (HTS), which provides for whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included, whey and modified whey, whether or not concentrated or containing added sugar or other sweetening matter, modified whey, other, other. The general rate of duty will be US $1.126 per kilogram, plus 9.2 percent ad valorem. The modified whey product, being wholly obtained or produced entirely in the territories of Canada, Mexico, and/or the United States, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Upon compliance with all applicable laws, regulations, and agreements under NAFTA, articles from Mexico classifiable in subheading 0404.10.1500, HTS, are subject to the quota quantity restrictions listed in 9906.04.55, HTS, which limit the amount of modified whey to the quantitative limits specified in U.S. Note 7 to Subchapter VI of Chapter 99. The rate of duty will be free.

Alternately, articles valued not over US $1.28 per kilogram are classifiable in subheading 9906.04.56, HTS. The rate of duty will be 66.9 cents per kilogram.

Otherwise, articles valued over US $1.28 per kilogram are classifiable in subheading 9906.04.57, HTS. The rate of duty will be 52.2 percent ad valorem.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR 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 Ralph Conte at (212) 466-5759.

Sincerely,

Gwenn Klein Kirschner
Chief, Special Products Branch

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