CLA-2 CO:R:C:G 085580 SS
Mr. Ashwin Patel
Venus Enterprises
35, Price Creek Road
Bremen, GA 30110
RE: Pure Butter Ghee
Daar Mr. Patel:
This letter is in response to your request on behalf of the
"alpha trading company" for a classification ruling for pure
butter ghee under the Harmonized Tariff Schedule of the United
States (HTSUS).
FACTS:
The label on a submitted sample can containing one kilogram
of ghee stated that the product was made from pure dairy butter
of the milk of "Dairy Cows", having 99.9 percent butter fat
ingredient content, processed and packed in the United Arab
Emirates. Pure butter ghee is clarified and purified butter
containing more than 99 percent by weight of butter fat, with no
salts or moisture.
ISSUE:
What is the proper tariff classification for pure butter
ghee?
-2-
LAW AND ANALYSIS:
The product butter oil is described in the U.S. Tariff
Commission Report to Congress, cited below as follows:
Butter oil is a concentrated butterfat product made from
butter, cream, or milk. It usually contains 99.5 percent
or more of butter fat. Butter oil is also known as
dehydrated butter or anhydrous milk fat; it is a bland,
yellowish product, lacking in butter flavor, and having a
jelly-like consistency at room temperature.
When made from fresh milk or cream, the product is usually
called anhydrous milk fat. Milk or cream is first
processed to form plastic cream (a concentrated cream
containing over 80 percent butterfat) and then the
remaining water and curd are removed. When made from
butter, the product is usually known as butter oil and
sometimes as dehydrated butter.
See The U.S. Tariff Commission report to Congress, Dairy
Products, Report of Investigation No. 332-53 Under Section 332 of
the Tariff Act of 1930 Pursuant to a Resolution of the Committee
on Ways and Means of the House of Representatives Adopted May 10,
1967, TC Publication 233, Washington, D.C., March 1968.
(Report).
Subheading 0405.00.80, HTSUS, provides for fats and oils
derived from milk other than butter. Subheading 0405.00.8020,
HTSUS, provides for other fats and oils derived from milk, other
than butter; anhydrous milk fat. Subheading 0405.00.8040, HTSUS,
provides for other fats and oils derived from milk, other than
butter; other than anhydrous milk fat.
Based on the above referenced Report, butter oil derived
from milk cream, having at least 99.5 percent butterfat content,
is usually called anhydrous milk fat. Accordingly, the subject
merchandise is properly classifiable under subheading
0405.00.8020, HTSUS.
When imported ghee is made from butter, and has at least
99.5 percent butterfat content, the resulting product is usually
known as butter oil or dehydrated butter, and is properly
classifiable in subheading 0405.00.8040, HTSUS.
-3-
HOLDING:
Imported ghee made from fresh milk, having at least 99.5
percent of butterfat content, is properly classifiable in
subheading in subheading 0405.00.8020, HTSUS, which provides for
other fats and oils derived from milk, other than butter;
anhydrous milk fat, and is dutiable at a rate of 10 percent ad
valorem.
Imported ghee made from butter, having at least a 99.5
percent butterfat content, is properly classifiable in subheading
0405.00.8040, HTSUS, which provides for other fats and oils
derived from milk, other than butter; other than anhydrous milk
fat, and is dutiable at a rate of 10 percent ad valorem.
Products classifiable in subheadings 0405.00.8020 and
0405.00.8040, HTSUS, are subject to the quota quantity
restrictions of subheading 9904.10.24, HTSUS, which limits the
amount of such products which may be imported from other
countries to an annual quota quantity of 544,310 kilograms. This
quota is administered on a first-come, first-served basis. This
quota opens on January 1 of each year.
Sincerely,
John Durant, Director
Commercial Rulings Division
6 cc: A.D., N.Y. Seaport
SS library/peh
084975 SS