CLA-2-04:RR:NC:2:231 E87724
Mr. Clark Bien
Total Foods Corporation
6018 West Maple Road, Suite 888
West Bloomfield, MI 48322-4404
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a powdered whole milk blend and a powdered skim milk blend manufactured in Canada from milk powder of Australian, Belgian, or Danish origin; Article 509
Dear Mr. Bien:
In your letter, dated September 15, 1999, you requested a ruling on the status of a powdered whole milk blend and a powdered skim milk blend manufactured in Canada from milk powder of Australian, Belgian, or Danish origin under the NAFTA.
The merchandise is described thus:
1. Powdered whole milk blend – The ingredients are 95 percent whole milk powder and 5 percent lactose powder (95 percent pure, expressed on an anhydrous basis). The whole milk powder contains 26 – 28 percent butterfat.
2. Powdered skim milk blend – The ingredients are 95 percent skim milk powder and 5 percent lactose powder (95 percent pure, expressed on an anhydrous basis). The skim milk powder contains 1.8 – 3.0 percent butterfat.
During the manufacturing process the ingredients will be blended in mechanical ribbon blenders. Lactose is added as a sweetening agent. Lactose functions in a manner similar to dextrose as a sweetening, browning, and bulking agent in a variety of food applications. The products will be imported in one ton, poly-lined, super sacks, and 50 pound paper bags, and/or 100 pound paper bags.
In your correspondence you indicate that these products will be manufactured in Canada from milk powder of Australian, Danish or Belgian origin. The lactose powder will be either foreign or of U.S. origin.
These mixes are specifically intended to be used in the manufacture of puddings and pie fillings; they also have applications in the bakery, chocolate and confectionery, and ice cream confection industries.
The applicable subheading for the powdered whole milk blend (item #1) and the powdered skim milk blend (item #2), if entered under quota, will be 0402.29.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent, other, described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions. The rate of duty will be 17.5 percent ad valorem. In 2000 the rate of duty will remain the same.
The applicable subheading for the powdered whole milk blend (item #1) and the powdered skim milk blend (item #2), if entered outside the quota, will be 0402.29.5000, HTS, which provides for milk and cream, concentrated or containing added sugar or other sweetening matter, in powder, granules or other solid forms, of a fat content, by weight, exceeding 1.5 percent, other, other. The rate of duty will be $1.136 per kilogram, plus 15.3 percent ad valorem. In 2000 the rate of duty will be $1.104 per kilogram, plus 14.9 percent ad valorem. In addition, products classified in subheading 0402.29.5000, HTS, will be subject to additional safeguard duties based on their value, as described in subheadings 9904.04.50 – 9904.05.01.
The merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials (the milk powder) used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/4. Accordingly, the mixes are not considered to be Canadian products, but rather, of the same origin as their principal ingredient, the milk powder.
For goods classified in subheading 0402.29.1000, an import license, issued to the importer by the United States Department of Agriculture, will be required at the time that such merchandise is entered for consumption into the United States.
Questions regarding licensing procedures and applications for licenses to import dairy products subject to quota should be addressed to:
Import Quota Manager for Dairy Products
STOP 1029/Room 5531-S
U.S. Department of Agriculture
1400 Independence Avenue, S.W.
Washington, DC 20250-1029
Importations of milk and milk products are subject to import regulations administered by various U.S. agencies. Requests for information regarding applicable regulations administered by the U.S. Food and Drug Administration may be addressed to that agency at the following location:
U.S. Food and Drug Administration
Division of Regulatory Guidance
HFF 314, 200 C Street, S.W.
Washington, DC 20204
Requests for information regarding applicable regulations administered by the U.S. Department of Agriculture may be addressed to that agency at the following location:
A.P.H.I.S. Veterinary Services
Federal Building, Room 756
6505 Belcrest Road
Hyattsville, MD 20782
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 Thomas Brady at 212-637-7064.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division