CLA-2-18:OT:RR:NC:N5:232
Mr. Micael Roll
Roll & Harris LLP
2121 Avenue of the Stars
Los Angeles, CA 90067
RE: The tariff classification and eligibility under the United States-Mexico-Canada Agreement (USMCA) of
Chocolate Blends from Mexico
Dear Mr. Roll:
In your letter dated July 23, 2025, you requested a ruling on the tariff classification and eligibility under the
USMCA of Chocolate Blends on behalf of your client, Rafi Industries, Inc. (Des Plaines, IL).
Ingredient breakdowns, production descriptions, and product specifications accompanied your inquiry.
The subject merchandise is described as four Chocolate Blends, as follows.
Blend 1 is said to contain cocoa butter that is 95 percent by weight from Malaysia, Indonesia, South Africa,
and Ivory Coast, and chocolate liquor that is 5 percent by weight from the same four countries. All of the
ingredients are sent to Mexico where they are blended into the finished chocolate blend.
Blend 2 is said to contain chocolate liquor that is 95 percent by weight from Malaysia, Indonesia, South
Africa, and Ivory Coast, and cocoa butter that is 5 percent by weight from the same four countries. All of the
ingredients are sent to Mexico where they are blended into the finished chocolate blend.
Blend 3 is said to contain cocoa butter that is 95 percent by weight from Malaysia, Indonesia, South Africa,
and Ivory Coast, chocolate liquor that is 4.5 percent by weight from the same four countries, and lecithin that
is 0.5 percent by weight from the United States, European Union, or Brazil. All of the ingredients are sent to
Mexico where they are blended into the finished chocolate blend.
Blend 4 is said to contain chocolate liquor that is 95 percent by weight from Malaysia, Indonesia, South
Africa, and Ivory Coast, cocoa butter that is 4.5 percent by weight from the same four countries, and lecithin
that is 0.5 percent by weight from the United States, European Union, or Brazil. All of the ingredients are
sent to Mexico where they are blended into the finished chocolate blend.
The four blends at issue will be imported to the United States in 20 to 25 kg plastic lined cartons or 1000 kg
kraft type totes. The U.S. importer will sell the four blends to a customer to manufacture chocolate,
chocolate fillings, chocolate blends, and chocolate coatings.
Classification:
The applicable subheading for the Chocolate Blends will be 1806.20.9900, Harmonized Tariff Schedule of
the United States (HTSUS), which provides for: “Chocolate and other food preparations containing
cocoa...Other preparations in blocks, slabs or bars, weighing more than 2 kg or in liquid, paste, powder,
granular or other bulk form in containers or immediate packings, of a content exceeding 2
kg…...other...other...other…other…other.” The general rate of duty will be 8.5 percent ad valorem.
USMCA:
The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30,
2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020 of the
USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (“GN”)
11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good
is an originating good for purposes of the USMCA. GN 11(b) states the following:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential
tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the
tariff schedule as a “good originating in the territory of a USMCA country” only if –
the good is a good wholly obtained or produced entirely in the territory of one or more USMCA
countries;
the good is a good produced entirely in the territory of one or more USMCA countries, exclusively
from originating materials;
the good is a good produced entirely in the territory of one or more USMCA countries using
non-originating materials, if the good satisfies all applicable requirements set forth in this note
(including the provisions of subdivision (o));
Production of the four Chocolate Blends in Mexico results in an originating good from a USMCA Rules of
Origin perspective. For goods classified under subheading 1806.20.9900, HTSUS, the applicable Rule of
Origin requires the following:
“A change to subheading 1806.20 from any other heading.”
In the case of the instant products, this requirement is met.
The chocolate liquor in the finished product is classified in Heading 1803, HTSUS, a heading other than
Heading 1806. The cocoa butter in the finished product is classified in Heading 1804, HTSUS, a heading
other than Heading 1806. The lecithin in the finished product is either of U.S. origin or, if not, is classified in
Heading 29, HTSUS, a heading other than Heading 1806. As such, the requisite changes in classification
occur that are consistent with the USMCA’s Rules of Origin and, thus, result in a USMCA originating good.
Based on the facts provided, the four Chocolate Blends qualify for USMCA preferential treatment because
they meet the requirements of HTSUS General Note 11(b)(iii). The merchandise will therefore be entitled to
a free rate of duty under the USMCA upon compliance with all applicable laws, regulations, and agreements.
Products of Mexico as provided by heading 9903.01.01 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(a), HTSUS, other than products classifiable under headings 9903.01.02, 9903.01.03, 9903.01.04, and
9903.01.05, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At the time of entry,
you must report the applicable Chapter 99 heading, i.e. 9903.01.01, in addition to subheading 1806.20.9900,
HTSUS, listed above. Articles that are entered free of duty under the terms of general note 11 to the HTSUS
(U.S.-Mexico-Canada Agreement (USMCA), including any treatment set forth in subchapter XXIII of
Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be subject to the additional ad valorem
duties provided for in heading 9903.01.01. If your product is entered duty free as originating under the
USMCA, you must report heading 9903.01.04, HTSUS, in addition to subheading 1806.20.9900, HTSUS.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products of Mexico are not
subject to reciprocal tariffs. At the time of entry, you must report the Chapter 99 heading applicable to your
product classification, i.e. 9903.01.27, in addition to subheading 1806.20.9900, HTSUS, listed above.
The tariffs and additional duties cited herein are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
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 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 and Border Protection
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, please contact
National Import Specialist Frank Troise at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division