CLA-2-22:OT:RR:NC:N5:232
Kirti Jadeja
Deloitte Tax LLP
555 Mission St. #1400
San Francisco, California 94105
RE: The tariff classification of flavored malt alcohol beverages from the United States
Dear Ms. Jadeja:
In your letter dated March 19, 2024, you requested a tariff classification ruling on behalf of your client Geloso Beverage Group LLC
The subject merchandise is described as flavored malt alcohol beverages. They are manufactured in New York State from raw materials sourced in the U.S. and Canada. The products are consolidated for shipping purposes with other beverage products made in Canada, and shipped back into the U.S. You have stated that excise taxes are paid at the time of U.S. production, in accordance with the timelines established by the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB). The goods are shipped to Canada and no drawback refund of excise taxes is requested when the goods are exported to Canada. At the time of import, the products are U.S. goods which have not undergone any further processing or improvement while abroad.
You inquire as to the applicability of the special classification provisions of heading 9801 of the Harmonized Tariff Schedule of the United States (HTSUS) for the flavored malt alcohol beverages.
Subheading 9801.00.10, HTSUS, provides for the free entry of products of the U.S. that have been exported and returned without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. While operations which either advance the value or improve the condition of the exported product render it ineligible for duty-free entry upon return to the U.S., some change in the condition of the product while it is abroad is permissible.
We find that the U.S. origin flavored malt alcohol beverages have not advanced in value or improved in condition by reason of being packaged in Canada. Provided the documentary requirements of section 10.1, Customs Regulations (19 C.F.R. 10.1), are met, the paper message will be eligible for the duty free provision of subheading 9801.00.1010, 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 and Border Protection 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, please contact National Import Specialist Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division