Modification of NYRL 837816; Chocolate Sprinkles; Other Chocolate Preparation of Subheading 1806.90, HTSUSA; Not Other Chocolate Preparation Imported in Bulk Form of Subheading 1806.20, HTSUSA.

HQ 086384 October 10, 1991 CLA-2 CO:R:C:F 086384 SLR CATEGORY: Classification TARIFF NO.: 1806.90.0090; 9904.10.66 Mr. Henry Kaplan DeCroix Specialty Foods, Co. 58-25 52nd Avenue Woodside, NY 11377 RE: Modification of NYRL 837816; Chocolate Sprinkles; Other Chocolate Preparation of Subheading 1806.90, HTSUSA; Not Other Chocolate Preparation Imported in Bulk Form of Subheading 1806.20, HTSUSA. Dear Mr. Kaplan: In New York Ruling Letter (NYRL) 837816 issued March 16, 1989, dark chocolate sprinkles were classified in subheading 1806.20.4060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other chocolate preparations imported in bulk form, dutiable at 5 percent ad valorem, with absolute quota restrictions of subheading 9904.10.66, HTSUSA, applying. We have since reviewed that ruling and have found it to be in error. The correct classification is as follows. FACTS: The dark chocolate sprinkles were stated to contain 43.19 percent chocolate liquor, 0.94 percent cocoa butter, 53.33 percent sugar, 2.51 percent milk powder, and 0.03 percent vanillin. Imported from Belgium, the sprinkles were packaged in containers of 2.5 kilograms. ISSUE: What is the proper classification of the sprinkles under the HTSUSA? -2- LAW AND ANALYSIS: Subheading 1806.20, HTSUSA, covers chocolate and other food preparations imported in bulk form. It is Customs position that the product at issue, although shipped in bulk quantities, does not qualify as a "bulk form" for tariff purposes. Rather, sprinkles are a finished article -- a product that will not undergo material change after importation. Consequently, the subject product is not classifiable in subheading 1806.20. HOLDING: The product at issue is classifiable in subheading 1806.90.0090, HTSUSA, which provides for chocolate and other food preparations containing cocoa. The rate of duty is 7 percent ad valorem. The product is still subject to the absolute quota restriction of subheading 9904.10.66, HTSUSA, however. This notice to you should be considered a modification of NYRL 837816 under 19 CFR 177.9(d)(1). It is not to be applied retroactively to NYRL 837816 (19 CFR 177.9(d)(2)) and will not, therefore, affect past transactions for the importation of your client's merchandise under that ruling. However, for the purposes of future transactions in merchandise of this type, NYRL 837816 will not be valid precedent. We recognize that pending transactions may be adversely affected by this modification, in that current contracts for importations arriving at a port subsequent to this decision will be classified pursuant to it. If such a situation arises, your client may, at its discretion, notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances. Sincerely, John Durant, Director Commercial Rulings Division