CLA-2-18:OT:RR:E:NC:N4:232
Ms. Jennifer Harris
Robert F. Barnes, CHB
15700 Export Plaza
Suite V
Houston, TX 77032
RE: The tariff classification and status under the United States-Peru Trade Promotion Agreement Implementation Act (Peru TPAIA), of candy coated chocolates from Peru.
Dear Ms. Harris:
In your letter dated March 2, 2017, on behalf of your client Cordialsa USA Inc., you requested a ruling on the classification and status of two candy coated chocolates from Peru (“Mini Chocolate Dragees” and “Mini Chocolate Compound Dragees”) under the Peru TPAIA
You submitted descriptive literature and photographs with your request. The subject merchandise is described as "candy coated chocolates" that are said to be in the shape of a chocolate center with a hard candy coating. They will be packed in 50 pound boxes for sale to cookie manufacturers to be used in baked goods. The "Mini Chocolate Dragees" are stated to consist of 68.35 percent sugar, 8.19 percent percent cocoa butter, 8.19 percent cocoa mass, 5.48 percent whole milk powder, 5.48 percent whey, 2.25 percent vegetable fat and less than one percent of the following ingredients: modified corn starch, corn starch, gum arabic, emulsifier, artificial color, artificial flavoring, salt, and glazing agent. The “Mini Chocolate Compound Dragees” are stated to consist of 72.26 percent sugar, 15.42 percent vegetable fat, 6.58 percent whey, 3.59 percent cocoa powder and less than one percent of the following ingredients: modified corn starch, maltodextrin, emulsifier, artificial color, artificial flavoring, and glazing agent.
You suggested a tariff classification of 1806.90.9019, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Chocolate and other food preparations containing cocoa: Other: Other: Other. We disagree with the suggested classification. Based upon the product’s use and packaging, they will be classified elsewhere.
The applicable tariff provision for the "Mini Chocolate Dragees" and “Mini Chocolate Compound Dragees” will be 1806.90.4900, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Chocolate and other food preparations containing cocoa: Other: Other: Other: Other: Articles containing over 65 percent by dry weight of sugar described in additional U.S. note 2 to chapter 17: Other. The duty rate will be 37.2 cents per kilogram plus 6 percent ad valorem. In addition, products classified in subheading 1806.90.4900, HTSUSA, will be subject to additional duties based on their value, as described in subheadings 9904.17.17 to 9904.17.48, HTSUS.
Articles classifiable under subheading 1801.90.4900, HTSUS, which are products of Peru, may be entitled to duty-free treatment under the United States – Peru Trade Promotion Agreement Implementation Act (PE) upon compliance with all applicable regulations. The PE is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on PE, check our Web site at www.cbp.gov and search for the term "PE".
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 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 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 Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division