CLA-2-21:OT:RR:NC:N2:228
Ms. Caitlin Kowalczyk
The Hershey Company
19 E Chocolate Avenue
Hershey, PA 17033
RE: The tariff classification of Lititz Caramel from Mexico
Dear Ms. Kowalczyk:
In your letters dated July 28 and September 4, 2015, you requested a tariff classification ruling.
Product specifications and an ingredients breakdown were submitted with your July letter. A sample and the contents of milk solids and milk fat were provided with your September 4th letter. The sample was examined and disposed of. Lititz Caramel is viscous, brown-colored paste, composed of corn syrup, sweetened condensed milk, high fructose corn syrup, palm oil, water, butter, sugar, molasses powder, salt, soya lecithin, disodium phosphate, and sodium bicarbonate, packed in 55-gallon metal drums with re-sealable lids. The product is produced in the United States and exported to Mexico where it is enrobed with chocolate. Excess drums of the caramel will be imported back into the United States. The caramel is used as a filling for making Hershey’s Milk Chocolate Caramels, and Dark Chocolate Caramels. The product contains over 10 percent milk solids and over 5.5 percent butterfat by weight.
The applicable subheading for the imported Lititz Caramel, if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 2106.90.6400, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included … other … other … other … containing over 10 percent by weight of milk solids … 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, the product will be classified in subheading 2106.90.6600, HTS, and dutiable at the rate of 70.4 cents per kilogram plus 8.5 percent ad valorem. In addition, products classified in subheading 2106.90.6600, HTSUS, will be subject to additional duties based on their value, as described in subheadings 9904.04.59 to 9904.04.66, HTSUS.
Subheading 9801.00.1098, HTSUS, provides for the duty-free entry of products of the United States that are returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. Provided the documentary requirements of 19 CFR 10.1 are satisfied, the U.S. Lititz Caramel when returned in the original condition from Mexico will be eligible for duty-free treatment under subheading 9801.00.1098, HTSUS.
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 http://www.usitc.gov/tata/hts/.
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 ww.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 Bruce N. Hadley, Jr. at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division