CLA-2-04:OT:RR:NC:2:231
Mr. David G. King
Marchant Schmidt, Inc.
24 West Larsen Drive
Fond du Lac, WI 54937
RE: The tariff classification of Gouda cheese from Norway; agricultural goods to be used in the testing of equipment.
Dear Mr. King:
In your letter dated October 17, 2011, you requested a tariff classification ruling.
You describe the merchandise to be imported as Gouda cheese in the form of “samples used to test the functionality of a machine.” You state that “during the machine testing the cheese is sliced or shredded, then destroyed,” and that the machine is eventually exported to Norway.
Ordinarily, the applicable subheading for Gouda cheese, if entered under quota, is 0406.90.1600, Harmonized Tariff Schedule of the United States (HTSUS), which provides for cheese and curd: other cheese: Edam and Gouda cheeses: described in additional U.S. note 20 to chapter 4 and entered pursuant to its provisions. The rate of duty is 15% ad valorem.
Imports under subheading 0406.90.1600, HTSUS, require an import license, in accordance with terms and conditions provided in regulations issued by the Secretary of Agriculture, subject to the approval of the United States Trade Representative (USTR). The regulations may provide for the reallocation among supplying countries or areas of unfilled quantities, subject to USTR approval.
Questions regarding licensing procedures and applications for licenses to import cheese subject to quota should be addressed to:
Import Quota Manager for Dairy Products
U.S. Department of Agriculture
Stop 1029
1400 Independence Avenue, SW
Washington, DC 20250-1029
Tel: (202) 720-1344
Ordinarily, the applicable subheading for Gouda cheese, if entered outside the quota (i.e., without a valid import license), is 0406.90.1800, HTSUS, which provides for cheese and curd: other cheese: Edam and Gouda cheeses: other. The rate of duty is $1.803 per kilogram. Also, products classified in subheading 0406.90.1800, HTSUS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.05.83—9904.05.93.
General Note 15, HTSUS, excerpts of which follow, provides for certain tariff-rate quota exemptions pertaining to agricultural products (including some cheeses):
Exclusions. Whenever any agricultural product of chapters 2 through 52, inclusive, is of a type (i) subject to a tariff-rate quota and (ii) subject to the provisions of subchapter IV of chapter 99, entries of such products described in this note shall not be counted against the quantity specified as the in-quota quantity for any such product in such chapters:
(c) such products, which will not enter the commerce of the United States, imported as samples for taking orders, for exhibition, display or sampling at a trade fair, for research, for use by embassies of foreign governments or for testing of equipment, provided that written approval of the Secretary of Agriculture or his designated representative the United States Department of Agriculture (USDA) is presented at the time of entry;
In applying to USDA for approval under subdivision (c) of this note, the importer must identify the product, quantity and intended use of the goods for which exemption is sought. USDA may seek additional information and specify such conditions of entry as it deems necessary to ensure that the product will not enter the commerce of the United States.
Therefore, upon compliance with the terms of General Note 15, including presentation to CBP of the above-referenced written approval from the USDA, the Gouda cheese may be entered under subheading 0406.90.1400, HTSUS, which provides for cheese and curd: other cheese: Edam and Gouda cheeses: described in general note 15 of the tariff schedule and entered pursuant to its provisions. The rate of duty will be 15% ad valorem.
For informational purposes only, we note that another alternative you may wish to look into is “temporary importation under bond” (“TIB”). Subheading 9813.00.30, HTSUS, provides for temporary duty-free entry, under bond, of articles intended solely for testing, experimental or review purposes. Subheading 9813.00.05, HTSUS, provides for temporary duty-free entry, under bond, of articles to be repaired, altered or processed. Under both of these provisions, the merchandise must be exported or destroyed within one year from the date of importation, unless an extension of the one-year period has been granted. If you wish to seek a ruling on whether your scenario qualifies for entry under either of these TIB provisions, you may write directly to U.S. Customs and Border Protection (CBP), Office of International Trade, Regulations and Rulings, Attention: Commercial & Trade Facilitation Division, 799 9th Street N.W., Washington, D.C. 20229-1179. If you decide to request such a ruling, it is suggested that you provide full details, including the nature and purpose of the testing, quantities, time frames, method of destruction, accountability, etc. If you need information on TIB entry procedures, required documentation and the like, you may contact CBP officials at the port where the cheese is expected to be entered.
Importations of cheese are subject to regulations administered by various U.S. agencies. Requests for information regarding applicable regulations administered by the U.S. Department of Agriculture (USDA) may be addressed to that agency at the following location:
USDA
APHIS, VS, NCIE
Products Program
4700 River Road, Unit 40
Riverdale, MD 20737-1231
Tel: (301) 734-3277
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 the FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
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 World Wide Web at http://www.usitc.gov/tata/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 Nathan Rosenstein at (646) 733-3030.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division