CLA-2-18:RR:NC:SP:232 J89886

Mr. Bob Forbes
R.O.E. Logistics
474 McGill Street
Suite 300
Montreal, Quebec
Canada H2Y 2H2

RE: The tariff classification of Milk Chocolate Flavored Coating (Product number LO10-168) from Canada

Dear Mr. Forbes:

In your letter dated October 3, 2003 on behalf of Barry Callebaut Canada Inc., you requested a tariff classification ruling.

The subject merchandise is stated to contain 41.5 percent sugar, 35.5 percent hydrogenated vegetable fat, 12.5 percent whey, 6.5 percent nonfat dry milk, 3 percent cocoa powder and 1 percent soy lecithin and vanillin. The product will be imported in 5 kilogram blocks for use as a coating. It is assumed for purposes of this ruling that the merchandise will be used to coat confectionery and/or pastry.

The applicable subheading for the Milk Chocolate Flavored Coating, if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 1806.20.8100, Harmonized Tariff Schedule of the United States (HTS), which provides for Chocolate and other food preparations containing cocoa: Other preparations in blocks or slabs weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg: other...other...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 general rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 10 to chapter 4 have been reached, and the product contains less than 21 percent by weight of milk solids, classification is under subheading 1806.20.8200, HTS, and dutiable at the rate of 37.2 cents per kilogram plus 8.5 percent ad valorem. In addition, except for goods of Canada, Mexico or Jordan, products classified in subheading 1806.20.8200, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.04.59 to 9904.04.66, HTS.

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 John Maria at 646-733-3031.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division