Newly Released CBP HQ Rulings on Sept. 5
The Customs Rulings Online Search System (CROSS) was updated Sept. 5 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
H325781: Affirmation of NY N325564; Tariff Classification of Lemonade Base from France
| Ruling: The lemonade base is properly classified in subheading 2106.90.9500, as "Food preparations not elsewhere specified or included: Other: Other: 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.” |
| Issue: What is the proper tariff classification of a lemonade base in liquid form? |
| Item(s): A lemonade base in liquid form containing approximately 40 percent water, 39 percent not-from-concentrate (NFC) lemon juice, and 22 percent granulated beet sugar with trace amounts of lemon oil. The product is said to be prepared by combining the water, NFC lemon juice, sugar and lemon oil in a food-grade stainless steel tank, pasteurizing said ingredients, aseptically filling and closing into multi-laminate paperboard cartons. |
| Reason: The Lemonade Base at issue contains over 10 percent of dry weight of sugar, specifically 21.5% of granulated beet sugar, and is imported in liquid form and in bulk for certain domestic restaurant operators, and not for retail sale to consumers or for retail household use, the Lemonade Base meets the requirements of Note 3 to Chapter 17. Resorting to a basket provision is unnecessary when subheading 2106.90.95 covers the product more specifically. |
| Ruling Date: Aug. 31, 2022 |
H324381: Tariff classification of Valess Nuggets and Valess Schnitzel dairy-based meat substitutes
| Ruling: Valess Nuggets and Valess Schnitzel products are classified in subheading 2106.90.82 as “Food preparations not elsewhere specified or included: Other: Other: Other: Containing over 10 percent by weight of milk solids: Other: Other.” |
| Issues: What is the tariff classification of the Valess Nuggets and Valess Schnitzel dairy-based meat substitutes? |
| Item(s): Valess Nuggets and Valess Schnitzel are made from Valess Fibers and other ingredients formed into nugget shapes, which are breaded, lightly salted, and lightly seasoned. The nuggets and schnitzel are made from skimmed milk, breadcrumbs, sunflower oil, textured wheat protein, thickener, free-range chicken egg protein, oat fiber, wheat flour, food acid, stabilizer, modified wheat starch, flavoring, salt, and iron. |
| Reason: Valess Nuggets and Valess Schnitzel products do not meet the court-prescribed standards that milk or cream must be the essential ingredient, ingredient of chief value, and preponderant ingredient for goods of headings 0401 to 0404. |
| Ruling Date: Aug. 29, 2022 |
H318461: Request for a binding ruling regarding Customs broker relations with unlicensed persons
| Ruling: There is no requirement that the broker, World Customs Brokerage, receive customs duties directly from the importer and it may receive them from the freight forwarder. In addition, WCB’s POA satisfies the written consent and waiver requirements of 19 C.F.R. §§ 111.24 and 111.36(c)(2)(i). |
| Issue: Whether or not WCB may enter a business relationship with a freight forwarder, World Courier, Inc., that is not a customs broker, within the regulations regarding Customs broker relations with unlicensed persons? Whether or not a customs broker must receive Customs duties directly from the importer? |
| Item(s): N/A |
| Reason: “Customs business” does not include the mere electronic transmission of data received for transmission to CBP and does not include a corporate compliance activity. It is permissible for a broker to allow an intermediary freight forwarder to collect payment from the importer, if the freight forwarder does not remit the payment to CBP directly, nor participates in decisions relating to those payments. |
| Ruling Date: Aug. 25, 2022 |