The tariff classification of an organic powdered sugar/starch blend from Canada

NY G83822 November 27, 2000 CLA-2-17:RR:NC:SP:232 G83822 CATEGORY: Classification TARIFF NO.: 1701.11.1000; 1701.11.5000; 1701.99.1000; 1701.99.5000 Mr. Paul Ryberg, Jr. Pierson Semmes and Bemis, L.L.P. Canal Square 1054 Thirty-First Street, N.W. Washington, D.C. 20007 RE: The tariff classification of an organic powdered sugar/starch blend from Canada Dear Mr. Ryberg: In your letter dated October 27, 2000, on behalf of Wholesome Sweeteners LLC, you requested a tariff classification ruling. Your request also asks whether the subject merchandise can enter the United States under the Tariff Rate Quota (TRQ) for raw cane sugar, and if the product qualifies for the Generalized System of Preferences (GSP). Information was submitted with your initial request dated September 6, 2000. The subject merchandise is described as an organic powdered sugar blended with 3 percent organic corn starch. The corn starch is added as an anti-caking agent. You state that the organic sugar will be imported from Paraguay into Canada accompanied by appropriate certificates of Quota Eligibility (CQE). You indicate that all shipping documents, including the invoice and bill of lading, etc., will specify the United States as the final destination of the sugar. The sugar is derived from sugar cane, and at the time of export from Paraguay, the polarity will range from 99.3 to 99.7 degrees. The corn starch will originate in Austria. The sugar will enter Canada under bond pursuant to an “inward processing program.” It is stated that the sugar will never enter the commerce of Canada, since products entering Canada under a duty deferral program intended for “manufacturing-in-bond” are to be exported. The sugar will be processed through a micro pulverizer and mixed with the starch. The resulting organic powdered sugar will be packed in retail bags, and reloaded into containers for shipment to the United States. It is noted that to ensure the organic certification of the end product, the sugar will be segregated from other products, before and after processing, and detailed records will be kept. The applicable subheading for the organic powdered sugar/starch blend if the sugar, prior to blending with the starch, has a polarity of less than 99.5 degrees, and if described in additional U.S. note 5 to chapter 17 and entered pursuant to its provisions will be 1701.11.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for cane or beet sugar and chemically pure sucrose, in solid form: raw sugar not containing added flavoring or coloring matter: cane sugar. The general rate of duty will be 1.4606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 0.943854 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.11.5000, HTS. The rate of duty will be 33.87 cents per kilogram. In addition, products classified under subheading 1701.11.5000, HTS, will be subject to additional duties based on their value as described in subheadings 9904.17.01 to 9904.17.06, HTS. The applicable subheading for the organic powdered sugar/starch blend if the sugar, prior to blending with the starch, has a polarity of 99.5 degrees or higher and if described in additional U.S. note 5 to chapter 17 and entered pursuant to its provisions, will be 1701.99.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for cane or beet sugar and chemically pure sucrose, in solid form: other. The rate of duty will be 3.6606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.99.5000, HTS. The duty rate will be 35.74 cents per kilogram. In addition, products classified under subheading 1701.99.5000, HTS, will be subject to additional duties based on their value as described in subheadings 9904.17.08 to 9904.17.15, HTS. Inquiries on Certificates of Quota Eligibility (CQE) should be made directly to: United States Department of Agriculture Foreign Agricultural Service Import Policies & Programs Div. 14th Street & Independence Ave. Washington, D.C. 20250-1000 Tel # 202-690-1632 The organic powdered sugar/starch blend does not qualify for duty free treatment under the Generalized System of Preferences (GSP), because of the processing operations performed on the subject merchandise in Canada. 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 John Maria at 212-637-7059. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division