The tariff classification, status under the North American Free Trade Agreement (NAFTA), of "CCS" cocoa product from Mexico; Article 509

N119340 September 16, 2010 CLA-2-18:OT:RR:NC:232 CATEGORY: Classification TARIFF NO.: 1806.20.9500; 1806.20.9800 Mr. Timothy Krellwitz Rafi Industries 1700 Higgins Road Suite 610 Des Plaines, Illinois 60018 RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), of “CCS” cocoa product from Mexico; Article 509 Dear Mr. Krellwitz: In your letter dated August 17, 2010 you requested a ruling on the status of “CCS” cocoa mix product from Mexico under the NAFTA. Samples and ingredient breakdowns accompanied your letter. The samples were examined and disposed of. The product is a cocoa mix that will be distributed to institutional companies in the United States. The mix will be sold through vending machines as a cocoa drink to which water or milk is added. The product will be packaged in cases containing three or four two-pound pouches. According to the information provided, the cocoa mix product is said to contain 49.5 percent cane or beet refined sugar, 13.3 percent maltodextrin, 13.0 percent whey permeate, 9.5 percent non-dairy creamer, 7.7 percent cocoa powder (10 to 12 percent fat), 5.0 percent non fat dry milk, 0.7 percent salt, 0.7 percent cellulose gum, 0.5 percent free flow agent and 0.1 vanillin. The total milk solids for this product is 18.19 percent and the total milk fat is 0.1935 percent. The cane or beet refined sugar and maltodextrin are of United States or Mexican origin. The whey permeate and vanillin are of United States or Canadian origin. The nonfat dry milk, non dairy creamer and salt are of United States origin and the cocoa powder is from the Ivory Coast. instant coffee is of Mexican origin. The cellulose gum will either be from Sweden, Holland or Mexico. The free flow agent (silicone dioxide) is of United States origin. The ingredients are shipped to Mexico for manufacture of the cocoa mix product “CCS”. The applicable subheading for the “CCS” cocoa mix if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 1806.20.9500 Harmonized Tariff Schedules of the United States, Annotated (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: Articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17: Described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The general rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 1806.20.9800, (HTSUS), and dutiable at the rate of 37.2 cents per kilogram plus 8.5 percent ad valorem. Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A), and 12(t)/18.4. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. 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 on World Wide Web at http://www.usitc.gov/tata/hts/. 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 telephone number (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 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 Frank Troise at (646) 733-3031. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division