United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 2002 NY Rulings > NY I86467 - NY I86524 > NY I86469

Previous Ruling Next Ruling
NY I86469

---

October 9, 2002

CLA-2-04:RR:NC:2:231 I86469

CATEGORY: CLASSIFICATION

TARIFF NO.: 0402.10.1000; 0402.10.5000; 0405.10.1000; 0405.10.2000

Mr. Miguel Zamudio
Ronald A. Chisholm (USA), Inc.
10901 West 120th Avenue, Suite 135
Broomfield, CO 80020-3451

RE: The tariff classification of powdered skim milk from Argentina, Brazil, Canada, Israel, and Uruguay, and butter from Israel and Mexico.

Dear Mr. Zamudio:

In your letter, dated September 13, 2002, you requested a tariff classification ruling.

The merchandise is described thus:

Powdered (dried) skim milk. The fat content is 0 percent. The packing weight is 25 kilograms. The countries of origin are Argentina, Brazil, Canada, Israel, and Uruguay. Butter. The fat content is 80-83 percent and the moisture content is 15.5 percent. The countries of origin are Israel and Mexico.

The applicable subheading for powdered skim milk (item 1), if entered under quota, will be 0402.10.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 percent, described in additional U.S. note 7 to chapter 4 and entered pursuant to its provisions. The general rate of duty will be 3.3 cents per kilogram.

Goods classifiable in subheading 0402.10.1000, HTS, being wholly obtained or produced entirely in the territory of Canada 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.

Goods classifiable in subheading 0402.10.1000, HTS, which are products of Israel, are entitled to duty free treatment under the United States – Israel Free Trade Area upon compliance with all applicable regulations.

The applicable subheading for powdered skim milk (item 1), if entered outside the quota, will be 0402.10.5000, HTS, which provides for milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 percent, other. The general rate of duty will be 86.5 cents per kilogram. In addition, products classified in subheading 0402.10.5000, HTS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.04.22 – 9904.04.30. 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.

Goods that are the product of Israel, which are classifiable in subheading 0402.10.5000, HTS, may be entered duty free under the provisions of subheading 9908.04.03, HTS, subject to the quantitative limits specified in U.S. note 4 to subchapter VIII in Chapter 99. U.S. Note 4, as amended by Presidential Proclamation 7554 of May 3, 2002, limits the amount of goods that may be entered duty free under this subheading to an aggregate quantity not exceeding 1,160,000 kilograms in calendar year 2002.

The applicable subheading for butter (item 2), if entered under quota, will be 0405.10.1000, HTS, which provides for butter and other fats and oils derived from milk; dairy spreads, butter, described in additional U.S. note 6 to chapter 4 and entered pursuant to its provisions. The general rate of duty will be 12.3 cents per kilogram.

Butter classified in subheading 0405.10.1000, HTS, if wholly obtained or produced entirely in the territory of Israel, will meet the requirements of HTSUSA General notes 8(a) and (b), and will therefore be entitled to a free rate of duty under the United States-Israel Free Trade Area Implementation Act of 1985 upon compliance with all applicable laws and regulations.

The applicable subheading for butter, if entered in subheading 0405.10.2000, HTS, which provides for butter and other fats and oils derived from milk; dairy spreads, butter, other. The general rate of duty will be $1.541 per kilogram. Such goods may also be subject to additional safeguard duties based on value, listed in subheadings 9904.04.09—9904.04.21, HTS.

However, butter which is the product of Israel, when classified in subheading 0405.10.2000, HTS, upon compliance with all applicable laws and regulations, may be entered free of duty, under subheading 9908.04.01, HTS, in subchapter VIII of Chapter 99, subject to the quantitative limits specified in U.S. note 3 to that subchapter. U.S. note 3, as amended by Presidential Proclamation 7554 of May 3, 2002, limits the amount of goods listed therein which may be imported free of duty to an aggregate quantity of 383,000 kilograms during calendar year 2002. Butter entered after the quantitative limits specified in U.S. note 3 have been reached, will be subject to the general duty rates and any applicable safeguard duties.

The applicable subheading for butter (item 2) from Mexico (which must be entered outside the tariff rate quota), will be 0405.10.2000, HTS, which provides for butter and other fats and oils derived from milk; dairy spreads, butter. Goods of Mexico, classifiable in subheading 0405.10.2000, HTS, which qualify as originating products of that country under general note 12, HTSUS, and imported in quantities that fall within the quantitative limits described in U.S. Note 5 to subchapter VI of chapter 99, HTS, will be free of duty pursuant to subheading 9906.04.75, HTS. The quantitative limits established under U.S. note 5 for calendar year 2002 are 54,000 kilograms. If the quantitative limits of U.S. Note 5 to subchapter VI of chapter 99 have been reached, and if the product is valued not over $1.30 per kilogram, it will be dutiable at the rate of 12.4 cents per kilogram, in subheading 9906.04.76, HTS. If valued over $1.30 per kilogram, the rate of duty will be 9.6 percent ad valorem, pursuant to subheading 9906.04.77, HTS.

For goods classified in subheadings 0402.10.1000 or 0405.10.1000, an import license, issued to the importer by the United States Department of Agriculture, will be required at the time that such merchandise is entered for consumption into the United States.

Questions regarding licensing procedures and applications for licenses to import dairy products subject to quota should be addressed to:

Import Quota Manager for Dairy Products
STOP 1029/Room 5531-S
U.S. Department of Agriculture
1400 Independence Avenue, S.W.
Washington, DC 20250-1029

Importations of milk and milk products are subject to import regulations administered by various U.S. agencies. Requests for information regarding applicable regulations administered by the U.S. Food and Drug Administration may be addressed to that agency at the following location:

Food and Drug Administration
Division of Import Operations and Policy
5600 Fishers Lane
Rockville, MD 20857

Requests for information regarding applicable regulations administered by the U.S. Department of Agriculture may be addressed to that agency at the following location:

A.P.H.I.S., Veterinary Services
Federal Building, Room 756
6505 Belcrest Road
Hyattsville, MD 20782

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 177).

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 (646) 733-3030.

Sincerely,

Robert B. Swierupski
Director

Previous Ruling Next Ruling

See also:

• Tariff No.: 0402.10.10 - Milk & cream in powder granules/other solid forms fat content by weight not exceeding 1.5% whether/not sweetened, described in addl note 7
• Tariff No.: 0402.10.50 - Milk & cream in powder granules/other solid forms fat content by weight not exceeding 1.5% whether/not sweetened, nesi
• Tariff No.: 0405.10.10 - Butter subject to quota pursuant to chapter 4 additional US note 6
• Tariff No.: 0405.10.20 - Butter not subject to general note 15 and in excess of quota in chapter 4 additional U.S. note 6
• Tariff No.: 9904.04.09 - Butter & cream with over 45% butterfat in 0401.30.75, 0403.90.78, & 0405.00.40, entered in value safeguard period, under $0.60/kg
• Tariff No.: 9904.04.21 - Butter & cream with over 45% butterfat in 0405.10.20, entered in quantity safeguard period
• Tariff No.: 9904.04.22 - Dried milk, w/ or w/o sugar or sweetening matter in 0402.10.50 & 0402.21.25, entered in value safeguard period, under $0.20/kg
• Tariff No.: 9904.04.30 - Dried milk, w/ or w/o sugar or sweetening matter in 0402.10.50 & 0402.21.25, entered in quantity safeguard period
• Tariff No.: 9906.04.75 - Mexico goods: Butter & other fats derived from milk, in 0405.00.40, within quota, specified in note 5
• Tariff No.: 9906.04.76 - Mexico goods: Butter & other fats derived from milk, in 0405.00.40, other, not over $1.30/kg
• Tariff No.: 9906.04.77 - Mexico goods: Butter & other fats derived from milk, in 0405.00.40, other, over $1.30/kg
• Tariff No.: 9908.04.01 - Eligible products of Israel provided for in subheading 0401.30.75, 0403.90.78 or 0405.10.20,within quota specified US note 3 to chapter 98
• Tariff No.: 9908.04.03 - Eligible products of Israel provided for in subheading 0402.10.50 or 0402.21.25, within quota specified US note 3 to chapter 98