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NY G83543




October 30, 2000

CLA-2-18:RR:NC:2:231 G83543

CATEGORY: CLASSIFICATION

TARIFF NO.: 1806.90.9011; 2008.11.4500; 2008.11.6000

Mr. Graeme Honeyfield
Glinso Foods LLC
3554 Round Barn Boulevard, Suite 310
Santa Rosa, CA 95403

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of flavored and thinly coated peanuts and chocolate coated peanuts from Canada.

Dear Mr. Honeyfield:

In your letter, dated October 17, 2000, you requested a ruling on the status of flavored and thinly coated peanuts and chocolate coated peanuts from Canada under the NAFTA.

The submitted samples are described thus:
sugar glazed, lightly roasted, fancy, confectionery peanuts – An examination of the sample indicates that the merchandise is comprised of flavored and thinly coated individual peanuts. During the manufacturing process, shelled and selectively sized peanuts (18/64 to 21/64 inch in diameter) are dipped in sugar solution and lightly air roasted. After roasting, the peanuts are cooled and packed into either 25 kilogram bags or bulk bags weighing 500-1,000 kilograms. This product will be used in the manufacture of confectionery products. The composition of the finished product is 98 percent peanuts and 1 percent sucrose. sugar glazed, oil roasted, fancy, confectionery peanuts – An examination of the sample indicates that the merchandise is comprised of flavored and thinly coated individual peanuts. Shelled and selectively sized peanuts (18/64 to 21/64 inch in diameter) are dipped in sugar solution and lightly air roasted. Then the peanuts are roasted in a stabilized vegetable oil, cooled, and packed into either 25 kilogram bags or bulk bags weighing 500-1,000 kilograms. This product will be used in the manufacture of confectionery goods. The composition of the finished product is 98 percent peanuts, 1 percent sucrose, and 1 percent vegetable oil. chocolate coated peanuts – Sugar glazed, roasted peanuts are sprayed with a milk chocolate coating. The quantity of chocolate used will depend on the specific product application and it will range from a minimum of 20 percent to a maximum of 50 percent of the finished product. The cooled, chocolate coated peanuts will be packed in 50 pound boxes, 50 pound bags, or 500-1,000 kilogram bulk totes. This product will be used in the manufacture of confectionery goods. The composition of the roasted peanuts is 98 percent peanuts, 1 percent sucrose, and 1 percent vegetable oil. The chocolate consists of 45 percent sugar, 24 percent milk powder, 17 percent cocoa mass, 13 percent cocoa butter, and up to 1 percent lecithin and flavor (vanillin and salt).

In your correspondence you indicate that the raw peanuts will be sourced in Argentina, China, Mexico, and Nicaragua. Refineries in the USA or Canada will supply the vegetable oil. The sugar will be of Canadian origin. The chocolate will be made in the USA and shipped to Canada. The chocolate liquor that is used is imported from the USA, where it has been made from imported cocoa beans and cocoa butter.

The applicable subheading for chocolate coated peanuts (item 3) will be 1806.90.9011, Harmonized Tariff Schedule of the United States (HTS), which provides for chocolate and other food preparations containing cocoa, other, other, other, other, other, confectionery, containing peanuts or peanut products. The general rate of duty will be 6 percent ad valorem..

Each of the non-originating materials used to make the chocolate coated peanuts has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/18.7. These products will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The applicable subheading for flavored and thinly coated peanuts (items 1 and 2), if entered under quota, will be 2008.11.4500, HTS, which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together, peanuts (ground-nuts), other, described in additional U.S. note 2 to chapter 12 and entered pursuant to its provisions. The general rate of duty will be 6.6 cents per kilogram.

The applicable subheading for flavored and thinly coated peanuts (items 1 and 2), if entered outside the quota, will be 2008.11.6000, HTS, which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together, peanuts (ground-nuts), other, other. The general rate of duty will be 131.8 percent ad valorem. In addition, products classified in subheading 2008.11.6000, HTS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.12.01 – 9904.12.19, HTS, subchapter IV, chapter 99. However, U.S. Note 1, subchapter IV in chapter 99 states, “Goods of Canada or Mexico imported into the United States shall not be subject to any of the provisions, duties or limitations of this subchapter.” Accordingly, if a product of Canada, the safeguard duties will not apply.

Each of the non-originating materials used to make the flavored and thinly coated peanuts has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/20.3. These products will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

Additional requirements may be imposed on these products by the Food and Drug Administration. You may contact the FDA at:

Food and Drug Administration
Division of Regulatory Guidance
200 C Street, S.W.
Washington, DC 20204

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 Thomas Brady at 212-637-7064.

Sincerely,

Robert B. Swierupski
Director,

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