HQ 955265
February 9 1994
CLA-2 CO:R:C:F 955265 JGH
TARIFF NO.: 3823.90.5050
District Director of Customs
127 North Water Street
Ogdensburg, New York 13669
RE: Classification of a Citric Acid Additive Produced in Canada.
Internal Advice 74/93.
Dear Sir:
This decision involves the classification of a citric acid
additive produced by Joseph E. Seagram & Sons, Inc.
FACTS:
The product consists of about 89 percent ethyl alcohol and
about 10 percent citric acid, with the balance being water. It
is to be used as a flavoring to add tartness or tang to wine or
malt coolers. After importation the product is blended with a
wine or malt base and water, with sugar, preservatives,
flavorings and colorings added; a carbonating agent is added at
bottling. The citric acid additive is said to comprise 1.5 to
2.5 percent of the finished product.
ISSUE:
Whether citrus acid additive is classified under the
provision for compound alcoholic preparations of a kind used for
the manufacture of beverages containing over 50 percent alcohol
by weight in subheading 2208.10.90, Harmonized Tariff Schedule of
the United States (HTSUS), or under the provision for other
chemical products of the chemical or allied industries, not
elsewhere specified or included, in subheading 3823.90.5050,
HTSUS. - 2 -
LAW AND ANALYSIS:
The Explanatory Notes to Heading 2208 point out that the
compound alcoholic preparations covered are those used in the
manufacture of various beverages. The preparations are said
generally to be "a complex mixture of distillates, tinctures,
alcoholates and natural or synthetic essences, contain all of the
odoriferous substances and other flavoring ingredients (e.g.,
citric acid) which characterize a particular beverage....". The
Notes go on to state that the beverage can be obtained by simply
diluting the preparation with water, wine or alcohol.
In contrast, the citric acid additive, rather than being a
complex preparation, is essentially an alcohol flavored with the
acid used to impart a tang to a wine or malt base, which is
processed further to produce the cooler; it only accounts for, at
most, 2.5 percent of the finished product. Thus, the additive
would not be a complex preparation of a type classifiable in
heading 2208. Since it is not classifiable in heading 2208, it
would not be considered for any possible classification in
heading 3302, if that provision is redefined, as that provision
covers alcoholic preparations based on odoriferous substances,
which citric acid is not.
It is noted that under Presidential Proclamation 6579 of
July 8, 1993, certain goods were granted accelerated tariff
elimination under the United States-Canada Free-Trade Agreement;
included was citric acid additives in subheading 9905.22.10,
HTSUS. However, that provision in describing the product listed
it as being classified in subheading 2207.10.30, HTSUS, the
provision for beverage grade ethyl alcohol. Since the additive,
because of its composition, could not be considered ethyl
alcohol, it is not classifiable in 2207.10.30 and, therefore,
subheading 9905.22.10 is fatally flawed and has no effect.
It is also noted that a provision in heading 2106 for food
preparations containing alcohol has been proposed. However,
since such a provision is not in effect at this time, no comment
is necessary on its applicability.
Therefore, it is concluded that citric acid additive is
classifiable under the provision for other chemical products and
preparations of the chemical and allied industries (including
those consisting of mixtures of natural products), not elsewhere
specified or included, in subheading 3823.90.5050, HTSUS. It is
free of duty.
It is stated that the citric acid additive is considered a
nonbeverage product by the Bureau of Alcohol, Tobacco and
Firearms, and, therefore, not subject to Federal excise tax, nor
to the permit and label approval requirements applicable to
beverage products. - 3 -
Accordingly, since the product is not considered a beverage
product for excise tax and related purposes, it could be subject
the added duty for fuel alcohol in subheading 9901.00.50, HTSUS.
Therefore, it is suggested that at entry the actual use
requirements of 19 CFR 10.131 - 139 be followed to preclude the
deposit of additional duties.
HOLDING:
The citric acid additive described above is classifiable as
a chemical mixture in subheading 3823.90.5050, HTSUS.
A copy of this decision should be provided to the internal
advice requestor.
The Office of Regulations and Rulings will take steps to
make this decision available to Customs personnel via the Customs
Rulings Module in ACS and the public via the Diskette
Subscription Service, Lexis, Freedom of Information Act and other
public access channels 60 days from the date of this decision.
Sincerely,
John Durant, Director