HQ 0089123 - Classification of canned cream - United States International Trade Commision Rulings

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HQ 089123

October 2, 1991

CLA-2 CO:R:C:F 089123 EAB

CATEGORY: CLASSIFICATION

TARIFF NO.: 0401.30.1000; 9904.10.03

Wilson C. Young, Vice President
Global Produce Corporation
2864 East 54th Street
Vernon, California 90058

RE: Classification of canned cream

Dear Mr. Young:

This is in reply to your letter dated April 15, 1991, in which you requested a binding ruling on the tariff classification under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) of canned cream. Two samples were submitted.

FACTS:

The product in question is a canned, sterilized dairy cream. The samples are each 170 ml tins. One, a Danish product, is a thick sterilized cream containing sodium citrate and 25 percent milkfat. The other product is English and consists of fresh cream, Acidity Regulator E339 and 23.1 grams of milk fat.

ISSUE:

What is the proper tariff classification under the HTSUSA of canned cream?

LAW AND ANALYSIS:

Merchandise imported into the U.S. is classified under the HTSUSA. The tariff classification of merchandise under the HTSUSA is governed by the principles set forth in the General Rules of Interpretation (GRIs) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUSA and are to be considered statutory provisions of law for all purposes.

GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes and, unless otherwise required, according to the remaining GRI's taken in order.

Heading 0401, HTSUSA, provides for milk and cream, not concentrated nor containing added sugar or other sweetening matter. We are of the opinion that both of the subject dairy products are expressly described by this heading.

At the subheading level, we find that both of the subject dairy products are properly classifiable under subheading 0401.30.1000, HTSUSA, as cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content greater than 6 percent and no more than 45 percent by weight.

HOLDING:

Canned cream, not concentrated nor containing added sugar or other sweetening matter and having a milkfat content of either 25 or 13.6 percent, by weight, is properly classifiable under subheading 0401.30.1000, HTSUSA, which provides for cream, not concentrated nor containing added sugar or other sweetening matter, of a fat content, by weight, exceeding 6 percent, of a fat content, by weight, not exceeding 45 percent, described in additional U.S. note 1(a) to chapter 4 of the Schedule. In accordance with the aforesaid U.S. note, the 3.2 cents per liter rate of duty set forth in subheadings 0401.30.10 and 0403.90.10 apply to the first 5,678,118 liters of products entered under both subheadings combined in any calendar year.

In addition, they are subject to the quota restraints of subheading 9904.10.03, HTSUSA, being 5,678,117 liters, which quantity is allocated entirely to New Zealand; accordingly, importations of canned cream from other countries is prohibited.

Sincerely,

John Durant, Director
Commercial Rulings Division

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