CLA-2-18:OT:RR:NC:232
Verena Rohrer INSTANTINA Nahrungsmittel Ges.m.b.H. Hauptstrasse 81a
2263 Duernkrut, Austria
RE: The tariff classification and the country of origin of Instant Hot Chocolate Drink Powder from Austria.
Dear Ms. Rohrer:
This is in response to your letter dated December 18, 2020, requesting a ruling on the classification and country of origin determination of Instant Hot Chocolate Drink Powder. You submitted flow charts depicting the various stages of operation, ingredients breakdown and pictorial representations of the product.
The subject merchandise is described as an Instant Hot Chocolate Drink Powder. The product contains 53.8% Sugar (product of Austria), 25.1% Low Fat Cocoa Powder (product of Austria, Spain or Netherlands), 11.1% Maltodextrin (product of Austria), 7.6% Dextrose (product of Bulgaria), 1.9% Calcium Carbonate (product of Germany) and trace amounts of Salt, Vitamins, and Vanilla Flavoring. All ingredients are mixed, milled, agglomerated, spray-dried, filtered, weighed and packaged in Austria. The Instant Hot Chocolate Drink Powder will be packed in cardboard boxes with a net weight of 800 grams per box and will be imported for sale specifically to the supermarket chain Aldi.
The applicable subheading for the Instant Hot Chocolate Drink Powder, will be 1806.90.5500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Chocolate and other food preparations containing cocoa: Other: Other: Other: Articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17: Described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The general rate of duty will be 3.5 percent ad valorem.
If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 1806.90.5900, HTSUS, and dutiable at the rate of 37.2 cents per kilo plus 6 percent ad valorem. In addition, products classified in subheading 1806.90.5900, HTSUS, may be subject to additional duties based on their value, as described in subheadings 9904.17.49 to 9904.17.65, 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 on the World Wide Web at https://hts.usitc.gov/current.
The marking statute, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
As defined in 19 CFR 134.1(b), "country of origin" means the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to change the country of origin of the article. A substantial transformation is said to occur when, after further processing or manufacture, an article emerges having a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F. 2d 778 (1982).19 CFR 134.35 and Headquarters Ruling Letters (HRLs) 555982, dated August 2, 1991.
Based upon the facts presented, the manufacturing process that occurs in Austria results in a substantial transformation of the product’s ingredients (sugar, low-fat cocoa powder, maltodextrin, dextrose, etc.) into Instant Hot Chocolate Drink Powder, a product with a new name, character, and use. Accordingly, the country of origin for the Instant Hot Chocolate Drink Powder is Austria.
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 the 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 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 Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division