CLA-2-21:OT:RR:NC:N2:228
Mr. Russell Semmel
Bryan Cave Leighton Paisner LLP
1290 Avenue of the Americas
New York, NY 10104
RE: The tariff classification of a Lemonade Base from France
Dear Mr. Semmel:
In your letter dated April 20, 2022, you requested a tariff classification ruling on behalf of your client, Sun Orchard LLC.
An ingredients breakdown, a manufacturing flowchart, photographs and descriptive literature were included with your request.
The subject merchandise is described as a Lemonade Base in liquid form. It is said to contain approximately 40 percent water, 39 percent not-from-concentrate (NFC) lemon juice, and 22 percent granulated beet sugar with trace amounts of lemon oil. The product is said to be prepared by combining the water, NFC lemon juice, sugar and lemon oil in a food-grade stainless steel tank, pasteurizing said ingredients, aseptically filling and closing into multi-laminate paperboard cartons.
The Lemonade Base will be imported into the United States at an ambient temperature and will be sold to certain domestic restaurant operators as an ingredient for the manufacture of lemonade by dilution. The product will not be sold directly to consumers or for retail household use, instead, the operator will distribute the product to individual restaurants, as end-users, that then use the product to prepare and sell lemonade and lemonade-containing drinks to consumers. Preparation instructions on the product packaging will direct the operator to pour the Lemonade Base into a 2 liter pitcher to the 0.75 liter line, add cold water to the 2 liter line, subsequent to mixing with a whisk.
In your letter, you initially proposed classification for the Lemonade Base under 2009.39.6040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fruit juices (including grape must) and vegetable juices, not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter: juice of any other single citrus fruit: other: other: lemon juice: other. We disagree. The product does not have the essential character of a juice product as it contains 25 percent of sugar added.
Alternatively, you suggest that the correct classification of the Lemonade Base should be 2106.90.9872, HTSUS, which provides for food preparations not elsewhere specified or included . . . other . . . other . . . preparations for the manufacture of beverages: containing sugar derived from sugar cane and/or sugar beets. We disagree. Based on the composition of the ingredients and use, the product will be classified elsewhere.
The applicable subheading for Lemonade Base, if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 2106.90.9500, HTSUS, which provides for food preparations not elsewhere specified or included … other … other … articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17… described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The general rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 2106.90.9700, HTSUS, and dutiable at the general rate of 28.8 cents per kilogram plus 8.5 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
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 Timothy Petrulonis at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division