CLA-2-17:S:N:N1:232-869626

Mr. Joseph E. Sandler
Arent Fox Kintner Plotkin & Kahn
1050 Connecticut Avenue, NW
Washington, DC 20036-5339

RE: The tariff classification of four drink mixes containing sugar from Canada.

Dear Mr. Sandler:

In your letter dated December 9, 1991, on behalf of Bowes Co., Ltd., 75 Vickers Road, Etobicoke M9B6B6 Ontario, Canada, you requested a tariff classification ruling. Your query concerns the classification and quota status of four drink mixes containing sugar to be exported from Canada to the United States. The merchandise will be imported in finished form for sale both to retail consumers and to institutional customers such as restaurants, hotels, catering firms and public facilities including hospitals, prisons and similar institutions. The first item is a powdered drink mix, marketed as flavor crystals, to be imported in several flavors and in two different types and sizes of packaging, both of which are intended for institutional customers. No retail packaging of the product will be imported. The composition of the flavor crystals, by dry weight, for all flavors, is 91.3 percent sugar, 7 percent citric acid, 0.51 percent flavoring, 0.09 percent color, 0.66 percent trisodium citrate, 0.34 percent ascorbic acid and 0.10 percent silicon dioxide. The second item is an iced tea mix consisting of 89 percent sugar, 5 percent dextrose, 2.5 percent acid, 1 percent instant tea and 2.5 percent other ingredient(s). This would be imported in three types of packaging, one of which is designed for retail and institutional customers, the other two being for institutional customers only. The third item is a hot chocolate powder dry mix composed of 51 percent sugar, 37 percent dairy ingredients, 11 percent cocoa and 1 percent other ingredient(s). This too, would be imported in three types of packaging, one of which is designed for both retail and institutional customers, while the other two types are for institutional customers only. Finally, there is an instant chocolate drink powder dry mix, which has two formulations. Formula #1 consists of 84 percent sugar, 8 percent cocoa, 6 percent starch and 2 percent other ingredient(s). Formula #2 consists of 84 percent sugar, 15 percent cocoa and 1 percent other ingredient(s). Both formulations would be imported in three types of packaging, two of which are intended for both retail and institutional customers, while the third is for retail customers only.

The applicable subheading for the flavor crystals will be 1701.91.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for cane or beet sugar and chemically pure sucrose in solid form...other...containing added flavoring matter whether or not containing added coloring. The duty rate will be 6 percent ad valorem. The applicable subheading for the ice tea mix will be 2101.20.4060, HTS, which provides for extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or mate...other...other...other ...containing over 10 percent by weight of sugar. The duty rate will be 10 percent ad valorem. This item is also subject to the quota restrictions of subheading 9904.60.60.

The applicable subheading for Formula #1 of the instant chocolate drink powder mix will be 1806.90.0060, HTS, which provides for chocolate and other food preparations containing cocoa...other...subject to quotas established pursuant to section 22 of the Agricultural Adjustment Act, as amended...provided for in subheading 9904.60.60. The rate of duty will be 7 percent ad valorem.

Goods classifiable under subheading 1701.91.4000, HTS, which have originated in the territory of Canada, will be entitled to a 3.6 percent rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations. Likewise, goods classifiable under subheading 2101.20.4060, HTS, will be entitled to a 2 percent duty rate, and goods classifiable under subheading 1806.90.0060, HTS, will be entitled to a 4.2 percent duty rate.

Your inquiry does not provide enough information for us to give a classification ruling on the hot chocolate powder dry mix or on Formula #2 of the instant chocolate drink powder mix. Your request for a classification ruling for the hot chocolate powder dry mix should identify the dairy ingredients, their percentages by weight and the percentage by weight of butterfat. Also, indicate the specific sizes of packages that are intended for the retail consumer, as opposed to the institutional consumer, for the style of packaging described as "rigid cardboard, plastic or metal packages with lid". If the same size packaging is sold for both retail and institutional use, will the product labels be identical? For Formula #2 of the instant chocolate drink powder mix, please specify what the 1 percent "other ingredient(s)" consists of.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Sincerely,

Jean F. Maguire
Area Director
New York Seaport