CLA-2-04:RR:NC:2:231 H80063
Mr. Jeffrey Kendall
Border Brokerage Company, Inc.
P.O. Box 3549
Blaine, WA 98231
RE: The tariff classification of concentrated lactose whey from Canada.
Dear Mr. Kendall:
In your letter, dated April 13, 2001, you requested a classification ruling on behalf of your client, Armstrong Cheese, Saputo Inc., Abbotsford, British Columbia.
The merchandise is comprised of concentrated lactose whey in liquid form. It contains 25 percent dry matter, of which 88 percent is lactose. The ingredients are, on a dry basis, 87 percent total digestible nutrients (TDN), 80-85 percent lactose, 25 percent dry matter, 9 percent ash, 4 percent crude protein (the minimum dry is 2.5 percent), 2.58 percent potassium, 1.01 percent phosphorus, 1 percent fat, 1 percent fiber, 0.89 percent sodium, and 0.68 percent calcium. The pH is 5.5. The product is pale yellow/green, clear, in liquid form, and it has the viscosity of light syrup.
Lactose whey is a by-product of the cheese manufacturing process. After the cheese has been removed from the whey, the whey is passed through a separator to remove residual butterfat. The separator also removes small particles of cheese that escape the cheese making process. This fat-free whey is passed through an ultrafiltration (UF) device that draws out nearly all of the true protein from the whey. The material that passes through the UF membrane is lactose whey, and at this point, it is 5 percent dry matter. During the final step, water is removed from the whey by reverse osmosis (RO). This process thickens the whey to 25 percent dry matter, the maximum that the product can withstand without crystallizing the lactose.
Lactose whey is a highly digestible carbohydrate in liquid form. It is derived by extracting protein (via ultrafiltration) from Canadian cheese whey. All milk used in the manufacture of cheese and whey is of Canadian origin. The product that remains after the extraction of the whey protein is called lactose permeate. This lactose permeate is a solution containing 95 percent water and 5 percent lactose. Water is removed from the lactose permeate using reverse osmosis filtration. The resulting product, called concentrated lactose permeate, contains 75 percent water and 25 percent lactose. It is produced under sanitary conditions and it will be used as an animal feed supplement for dairy cattle.
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The applicable subheading for concentrated lactose whey will be 0404.10.1500, HTS, which provides for whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included, whey and modified whey, whether or not concentrated or containing added sugar or other sweetening matter, other, other. The general rate of duty will be $1.035 per kilogram, plus 8.5 percent ad valorem. In addition, products classified in subheading 0404.10.1500, HTS, are subject to additional safeguard duties based on their value, as described in subheadings 9904.04.50 – 9904.05.01, subchapter IV, chapter 99. However, U.S. Note, subchapter IV in chapter 99 states, “Goods of Canada or Mexico imported into the United States shall not be subject to any of the provisions, duties or limitations of this subchapter." Accordingly, if a product of Canada, the safeguard duties will not apply.
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 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 Thomas Brady at 212-637-7064.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division