CLA-2-04:RR:NC:2:231 B85817

0406.90.9500; 0406.90.9700

Mr. Alphonse Catafago
Phoenicia Products, Inc.
9050 Charles de la Tour
Montreal, Quebec H4N 1M2
Canada

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of fermented dairy beverage, and Halloom, Nabulsi, Twist, and Akawie cheese from Canada; Article 509

Dear Mr. Catafago:

In your letter, dated May 13, 1997, you requested a ruling on the status of fermented dairy beverage, and Halloom, Nabulsi, Twist, and Akawie cheese from Canada under the NAFTA. The products are described thus:

1. Laban Ayran. Fermented dairy beverage. The ingredients are 65.5 percent water, 32.5 percent cow's milk, 1 percent salt, 1 percent potassium sorbate, and a trace amount of bacterial culture. The beverage will contain 1 percent milk fat in the dry matter.

2. Halloom, Semi-soft, unripened cheese. The ingredients are 95.5 percent cow's milk, 4.5 percent salt, 0.025 percent rennet, 0.025 percent calcium chloride, and a trace amount of bacterial culture. The cheese will contain, by weight, 48 percent moisture, and 24 percent milk fat in the dry matter.

3. Nabulsi. Semi-soft, unripened cheese. The ingredients are 96.5 percent cow's milk, 2.2 percent salt, 0.5 percent benedic, 0.025 percent rennet, 0.025 percent calcium chloride, and a trace amount of bacterial culture. The cheese will contain, by weight, 52 percent moisture, and 22 percent milk fat in the dry matter.

4. Twist. Firm, unripened cheese with spices. The ingredients are 86 percent cow's milk, 9 percent salt, 2 percent bacterial culture, 0.5 percent spices, and 0.025 percent rennet. The cheese will contain, by weight, 48 percent moisture, and 20 percent milk fat in the dry matter.

5. Akawie. Soft, unripened cheese. The ingredients are 97 percent cow's milk, 3 percent salt, 0.025 percent rennet, and 0.025 percent calcium chloride. The cheese will contain, by weight, 55 percent moisture, and 20 percent milk fat in the dry matter.

In your correspondence you indicate that the five products will be wholly manufactured in Canada using Canadian ingredients.

The applicable subheading for "Laban Ayran" will be 0403.90.8500, Harmonized Tariff Schedule of the United States (HTS), which provides for buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavored or containing added fruit, nuts or cocoa, other, other, fermented milk other than dried fermented milk or other than dried milk with added lactic ferments. The general rate of duty will be 18.5 percent ad valorem.

"Laban Ayran," being wholly obtained or produced entirely in the territory of Canada, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a 2 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The applicable subheading for "Akawie," if imported in quantities that fall within the limits described in additional U.S. note 16 to chapter 4, will be 0406.10.8400, Harmonized Tariff Schedule of the United States (HTS), which provides for cheese and curd, fresh (unripened or uncured) cheese, including whey cheese, and curd, other, other, other, other cheese and substitutes for cheese (except cheese not containing cow's milk, and soft ripened cow's milk cheese, described in additional U.S. note 16 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 16 to chapter 4 have been reached, the product will be classified in subheading 0406.10.8800, HTS, and will be dutiable at US $1.642 per kilogram. In addition, products classified in subheading 0406.10.8800, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.06.38 - 9904.06.49, HTS. "Akawie," being wholly obtained or produced entirely in the territory of Canada, will meet the requirements of HTSUSA General Note 12(b)(i). Upon compliance with all applicable laws, regulations, and agreements under NAFTA, articles from Canada, if imported in quantities that fall within the limits described in additional U.S. note 16 to chapter 4, will be 0406.10.8400, HTS, and will be subject to a 1 percent ad valorem rate of duty. If the quantitative limits of additional U.S. note 16 to chapter 4 have been reached, the products will be classified in subheading 0406.10.8800, HTS, and will be dutiable at US $1.642 per kilogram. In addition, products classified in subheading 0406.10.8800, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.06.38 - 9904.06.49, HTS.

The applicable subheading for "Halloom," "Nabulsi," and "Twist," if imported in quantities that fall within the limits described in additional U.S. note 16 to chapter 4, will be 0406.90.9500, HTS, which provides for cheese and curd, other cheese, other cheeses, and substitutes for cheese, including mixtures of the above, other, including mixtures of the above, (excluding goods containing mixtures of subheadings 0406.90.61 or 0406.90.63), other, other, containing cow's milk (except soft-ripened cow's milk cheese), described in additional U.S. note 16 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 16 to chapter 4 have been reached, the product will be classified in subheading 0406.90.9700, HTS, and will be dutiable at US $1.642 per kilogram. In addition, products classified in subheading 0406.90.9700, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.06.38 - 9904.06.49, HTS.

"Halloom," "Nabulsi," and "Twist," being wholly obtained or produced entirely in the territory of Canada, will meet the requirements of HTSUSA General Note 12(b)(i). Upon compliance with all applicable laws, regulations, and agreements under NAFTA, articles from Canada, if imported in quantities that fall within the limits described in additional U.S. note 16 to chapter 4, will be 0406.90.9500, HTS, and will be subject to a 1 percent ad valorem rate of duty. If the quantitative limits of additional U.S. note 16 to chapter 4 have been reached, the products will be classified in subheading 0406.90.9700, HTS, and will be dutiable at US $1.642 per kilogram. In addition, products classified in subheading 0406.90.9700, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.06.38 - 9904.06.49, HTS.

An import license, issued to the importer by the United States Department of Agriculture, will be required at the time that "Halloom," "Nabulsi," "Twist," and "Akawie" is entered for consumption into the United States.

Questions regarding licensing procedures and applications for licenses to import cheese subject to quota should be addressed to:

U.S. Department of Agriculture Foreign Agricultural Service Import Policies and Trade Analysis Division Att: Dairy Import Group, Rm. 5531, So. Bldg. Washington, DC 20250-1000 This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR 181).

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 Ralph Conte at (212) 466-5759.


Sincerely,

Gwenn Klein Kirschner
Chief, Special Products Branch
National Commodity
Specialist Division