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NY R01685




May 23, 2005

CLA-2-04: RR: NC: 2:231 R01685

CATEGORY: CLASSIFICATION

TARIFF NO.: 0405.90.1040; 0405.90.2040

Ms. Stacey Page
Glinso Foods
3554 Round Barn Blvd. (Suite 310)
Santa Rosa, CA 95403

RE: The tariff classification of confectionery butter mixes from Australia or New Zealand.

Dear Ms. Page:

In your correspondence dated March 23, 2005 you requested a tariff classification ruling.

The goods at issue are two confectionery butter mixtures, which will be imported refrigerated, in containers ranging from 25-kg corrugated fiberboard cartons to 1,250 kg. bulk transport containers (totes). The butter component in these blends may be a product of Australia or New Zealand. These products will be utilized in bakery, ice cream, confectionery and other food applications. Their compositions are as described in the following paragraphs.

Confectionery Mix Butter 9901 is a blend of 99 percent-salted butter and about 1 percent sugar (sucrose). The milk fat component in this mixture will be over 80 percent (typically 80.5 percent). Other constituents include moisture (15.5 percent by weight) and non-fat milk solids (1.7 percent).

Confectionery Mix B78 is a blend of 95 percent (maximum) butter and 5 percent (maximum) sugar and/or salt. It is comprised of 76-78 percent milk fat, 5.0 percent sugar/salt (either separately or in combination), 15.0 moisture and 1.5 percent curd.

The applicable subheading for Confectionery Mix Butter 9901, if entered under quota, will be 0405.90.1040, Harmonized Tariff Schedule of the United States (HTS), which provides for butter and other fats and oils derived from milk; dairy spreads, other, described in additional U.S. note 14 to this chapter and entered pursuant to its provisions, other. The rate of duty will be 10 percent of the value. Entry under additional U.S. note 14 requires that the importer be the holder of an import license, issued by the U.S. Department of Agriculture, for the goods entered therein.

The applicable subheading for Confectionery Mix Butter 9901, if entered outside the quota, will be 0405.90.2040, Harmonized Tariff Schedule of the United States (HTS), which provides for butter and other fats and oils derived from milk; dairy spreads, other, other, other. The General rate of duty, applicable to products of New Zealand and to Australian goods entered outside the Free Trade Agreement provisions in subchapter Xlll of chapter 99, will be $1.865/kiilogram + 8.5 percent ad valorem.

Goods of Australia, classifiable in subheading 0405.90.20, HTS, entered under the terms of general note 28 of the Harmonized Tariff Schedule of the United States, and imported in quantities that fall within the quantitative limits and which meet the requirements described in note 5 subchapter XIII of chapter 99, HTS, will be free of duty pursuant to subheading 9913.04.10, HTS.

Goods classified in subheading 0405.90.2040, HTS, which are not originating Australian goods (being processed from New Zealand butter), will be subject to additional duties, currently based on their value, as described in subheadings 9904.05.37 – 9904.05.47.

The applicable subheading for Confectionery Mix B78, if entered under the Tariff Rate Quota, will be 0405.20.6000, HTS, which provides for butter and other fats and oils derived from milk; dairy spreads: dairy spreads, other, dairy products described in additional U.S. note 1 to chapter 4, described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions. The rate of duty will be 10 percent ad valorem.

Articles classifiable under subheading 0405.20.6000, HTS, which are products of Australia, are currently entitled to duty free treatment under the United States-Australia Free Trade Agreement (UAFTA) upon compliance with all applicable regulations.

The applicable subheading for Confectionery Mix B78, if entered outside the Tariff Rate Quota, will be 0405.20.7000, HTS, which provides for butter and other fats and oils derived from milk; dairy spreads: dairy spreads, other, dairy products described in additional U.S. note 1 to chapter 4, other. The General rate of duty, applicable to products of New Zealand and to Australian goods entered outside the Free Trade Agreement provisions in subchapter Xlll of chapter 99, will be 70.4 cents per kilogram + 8.5 percent ad valorem.

Goods of Australia, classifiable in subheading 0405.20.70, HTS, entered under the terms of general note 28 of the Harmonized Tariff Schedule of the United States, and imported in quantities that fall within the quantitative limits and which meet the requirements described in note 8 subchapter XIII of chapter 99, HTS, will be free of duty pursuant to subheading 9913.04.25, HTS.

Goods classified in subheading 0405.20.7000, HTS, which are not originating Australian goods (being processed from New Zealand butter), will be subject to additional duties, currently based on their value, as described in subheadings 9904.04.50 – 9904.05.01.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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,
National Commodity

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