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NY B81939

February 28, 1997

CLA-2-21:RR:NC:2:228 B81939


TARIFF NO.: 2106.90.6400; 2106.90.6600

Ms. Mary Beth Moran
The Buffalo Customhouse Brokerage Co., Inc. 1245 Niagara Street
Buffalo, NY 14213

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of dairy spreads from Canada; Article 509

Dear Ms. Moran:

In your letters dated November 27, 1996 and January 31, 1997, on behalf of Marsan Foods Limited, Scarborough, Ontario, Canada, you requested a ruling on the status of food products from Canada under the NAFTA.

Ingredients breakdowns were submitted with your November letter; additional information regarding ingredient cost, packaging and imported condition was provided, via facsimile transmission, in February. "Keg Escargot Butter" is said to consist of approximately 49 percent butter, 11 percent hydrogenated soybean oil, 8 percent onions, 6 percent gherkins, 5 percent prepared mustard, 4 percent eggs, 4 percent garlic, 4 percent parsley, 3 percent capers, two percent each of Worcestershire sauce, anchovies, and lemon juice, and one percent each of lemon juice, garlic, and spices. "Keg 3-Cheese Butter" is composed of approximately 40 percent sour cream, 20 percent butter, 20 percent hydrogenated soybean oil, seven percent monterey jack cheese, 7 percent cheddar cheese, 2 percent parmesan cheese, 2 percent garlic, one percent salt, and less than one percent each of Worcestershire sauce, prepared mustard, spice, onions, parsley, and smoke. The anchovies in the Keg Escargot Butter are goods of Spain, and the prepared mustard in the Keg 3-Cheese Butter is a product of France. All other ingredients are products of the United States or Canada. Both "butters" are imported frozen, put up in containers holding 2.27-kilograms, 6 units to a case, and sold to restaurants.

The applicable subheading for these two products, if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 2106.90.6400, Harmonized Tariff Schedule of the United States (HTS), which provides for food preparations not elsewhere specified or included...other...other...containing over 10 percent by weight of milk solids...other, dairy products described in additional U.S. note 1 to chapter 4...described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions. The rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 10 to chapter 4 have been reached, the products will be classified in subheading 2106.90.6600, HTS, and dutiable at the rate of 76.6 cents per kilogram, plus 9.2 percent ad valorem.

The non-originating material used to make the Keg Escargot Butter has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/12. This product will be entitled to a one percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The Keg 3-Cheese Butter does not qualify for preferential treatment under the NAFTA because the non-originating material used in its production will not undergo the change in tariff classification required by General Note 12(t)/12, HTSUSA.

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 Stanley Hopard at 212-466-5760.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.


Gwenn Klein Kirschner
Chief, Special Products Branch

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