Pure Butter Ghee

HQ 085580 January 16, 1990 CLA-2 CO:R:C:G 085580 SS CATEGORY: Classification TARIFF NO.: 0405.00.8020; 0405.00.8040 Mr. Ashwin Patel Venus Enterprises 35, Price Creek Road Bremen, GA 30110 RE: Pure Butter Ghee Daar Mr. Patel: This letter is in response to your request on behalf of the "alpha trading company" for a classification ruling for pure butter ghee under the Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The label on a submitted sample can containing one kilogram of ghee stated that the product was made from pure dairy butter of the milk of "Dairy Cows", having 99.9 percent butter fat ingredient content, processed and packed in the United Arab Emirates. Pure butter ghee is clarified and purified butter containing more than 99 percent by weight of butter fat, with no salts or moisture. ISSUE: What is the proper tariff classification for pure butter ghee? -2- LAW AND ANALYSIS: The product butter oil is described in the U.S. Tariff Commission Report to Congress, cited below as follows: Butter oil is a concentrated butterfat product made from butter, cream, or milk. It usually contains 99.5 percent or more of butter fat. Butter oil is also known as dehydrated butter or anhydrous milk fat; it is a bland, yellowish product, lacking in butter flavor, and having a jelly-like consistency at room temperature. When made from fresh milk or cream, the product is usually called anhydrous milk fat. Milk or cream is first processed to form plastic cream (a concentrated cream containing over 80 percent butterfat) and then the remaining water and curd are removed. When made from butter, the product is usually known as butter oil and sometimes as dehydrated butter. See The U.S. Tariff Commission report to Congress, Dairy Products, Report of Investigation No. 332-53 Under Section 332 of the Tariff Act of 1930 Pursuant to a Resolution of the Committee on Ways and Means of the House of Representatives Adopted May 10, 1967, TC Publication 233, Washington, D.C., March 1968. (Report). Subheading 0405.00.80, HTSUS, provides for fats and oils derived from milk other than butter. Subheading 0405.00.8020, HTSUS, provides for other fats and oils derived from milk, other than butter; anhydrous milk fat. Subheading 0405.00.8040, HTSUS, provides for other fats and oils derived from milk, other than butter; other than anhydrous milk fat. Based on the above referenced Report, butter oil derived from milk cream, having at least 99.5 percent butterfat content, is usually called anhydrous milk fat. Accordingly, the subject merchandise is properly classifiable under subheading 0405.00.8020, HTSUS. When imported ghee is made from butter, and has at least 99.5 percent butterfat content, the resulting product is usually known as butter oil or dehydrated butter, and is properly classifiable in subheading 0405.00.8040, HTSUS. -3- HOLDING: Imported ghee made from fresh milk, having at least 99.5 percent of butterfat content, is properly classifiable in subheading in subheading 0405.00.8020, HTSUS, which provides for other fats and oils derived from milk, other than butter; anhydrous milk fat, and is dutiable at a rate of 10 percent ad valorem. Imported ghee made from butter, having at least a 99.5 percent butterfat content, is properly classifiable in subheading 0405.00.8040, HTSUS, which provides for other fats and oils derived from milk, other than butter; other than anhydrous milk fat, and is dutiable at a rate of 10 percent ad valorem. Products classifiable in subheadings 0405.00.8020 and 0405.00.8040, HTSUS, are subject to the quota quantity restrictions of subheading 9904.10.24, HTSUS, which limits the amount of such products which may be imported from other countries to an annual quota quantity of 544,310 kilograms. This quota is administered on a first-come, first-served basis. This quota opens on January 1 of each year. Sincerely, John Durant, Director Commercial Rulings Division 6 cc: A.D., N.Y. Seaport SS library/peh 084975 SS