CLA-2-22:OT:RR:NC:N2:N232
Robert D. Stang Husch Blackwell LLP 1801 Pennsylvania Ave. N.W., Suite 1000
Washington, D.C. 20006
RE: The tariff classification of the Olmeca Altos Margarita beverage from Mexico
Dear Mr. Stang:
In your letter dated July 22, 2022, you requested a tariff classification ruling on behalf of your client Pernod Ricard USA, LLC. A sample of the product, an ingredients breakdown, a manufacturing flowchart, and descriptive literature were included with your inquiry. The sample was examined and discarded.
The subject merchandise is described as Olmeca Altos Margarita beverage and is said to contain water, neutral spirit, tequila, liquid sugar, agave syrup, citric acid, tartaric acid, sodium citrate, sodium chloride and natural orange flavor. The tequila and the neutral grain spirit mixture is diluted with water, added with other ingredients, and filtered to form the Olmeca Altos Margarita beverage in 750 ml bottles with an alcohol by volume content of 15 percent. The finished products are alcoholic beverages ready to be consumed directly from the bottle.
In your letter, you proposed classification for the Olmeca Altos Margarita beverage under 2208.70.0030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 percent vol.; spirits, liqueurs and other spirituous beverages: Liqueurs and cordials: In containers each holding not over 4 liters. We disagree. Based on the composition of the ingredients and use, the product does not have the essential character of liqueurs or cordials, and it will be classified elsewhere.
The applicable subheading for the Olmeca Altos Margarita beverage will be 2208.90.8000, HTSUS, which provides for Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 percent vol.; spirits, liqueurs and other spirituous beverages: Other: Other: Other. The general rate of duty will be 21.1 cents per liter.
Imports under this subheading may be subject to Federal Excise Tax (26 U.S.C. 5001, 26 U.S.C. 5041 or 26 U.S.C. 5051). Additional requirements may be imposed on this product by the Alcohol and Tobacco Tax and Trade Bureau (TTB). You may contact the TTB at the following number: (1-866-927-2533), [email protected]. Written requests may be addressed to: Alcohol and Tobacco Tax and Trade Bureau, Advertising, Labeling and Formulation Division, 1310 G Street NW, Box 12, Washington, DC 20005.
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 Frank Troise at frank.l.troise.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division