The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Confectionery Coatings from Canada; Article 509

NY E87188 September 30, 1999 CLA-2-18:RR:NC:SP:232 E87188 CATEGORY: Classification TARIFF NO.: 1806.20.9900 Mr. Bernard Adrien Fritz Starber Inc. 410, St-Nicolas Bureau 300 Montreal, Quebec Canada, H2Y 2P5 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Confectionery Coatings from Canada; Article 509 Dear Mr. Adrien: In your letter dated September 1, 1999 you requested a ruling on the status of confectionery coatings from Canada under the NAFTA. Samples were included with your initial request dated July 20, 1999. The subject merchandise consists of the following chocolate flavored confectionery and cocoa coatings: CF-1046, CF-1007 HBR-7, CF-7555, CF-1230, CF-7265. CF-1046 is stated to contain 60.00 percent sugar, 27.75 percent partially hydrogenated palm kernel and palm oils, 6.82 percent non-fat dry milk, 5.00 percent natural processed cocoa and small quantities of various other ingredients. CF-1007 HBR-7 contains 50.60 percent sugar, 30.75 percent partially hydrogenated palm kernel oil, 12.00 percent sweet whey, 5.50 percent natural processed cocoa and small quantities of various other ingredients. CF-7555 contains 54.37 percent sugar, 27.31 partially hydrogenated palm kernel oil, 11.30 percent sweet whey, 5.50 percent natural processed cocoa, 0.95 percent cocoa processed with alkali and small quantities of various other ingredients. CF-1230 contains 48.08 percent sugar, 36.21 percent partially hydrogenated soybean oil with sorbitan tristearate, 9.09 sweet whey, 6.27 percent cocoa and small quantities of various other ingredients. CF-7265 contains 52.14 percent sugar, 31.72 percent partially hydrogenated soybean oil with sorbitan tristearate, 8.64 percent sweet whey, 7.00 percent cocoa and 0.50 percent lecithin. The various cocoa powders have a fat content of 10 to 12 percent. The cocoa powders are produced in Holland or Singapore. They are also produced in the United States and Canada from cocoa beans from the Ivory Coast. The balance of the ingredients originate in the United States or Canada. The confectionery coatings are produced in Canada and are shipped in liquid form in tanks holding approximately 40,000 pounds. They are used to coat cakes, cookies, and similar products. The applicable tariff provision for the CF-1046, CF-1007 HBR-7, CF-7555, CF-1230 and CF-7265 confectionery and cocoa coatings will be 1806.20.9900, HTS, 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. The general rate of duty will be 8.8 percent ad valorem. Each of the non-originating materials used to make the confectionery coatings has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/18. The confectionery coatings will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. 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 John Maria at 212-637-7059. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division