HQ 950998: Classification of Colored Non Pareil Seeds and Colored Sugars

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                         HQ 950998


                              FEBRUARY 3,1992


CLA-2 CO:R:C:F  950998  JGH

CATEGORY: Classification

TARIFF NO.: 1701.91.2125

Mr. Peter S. Hirsch
Paulaur Corporation
South Gold Industrial Park
2 Marlen Drive
Robbinsville, New Jersey  08691

RE: Classification of Colored Non Pareil Seeds and Colored Sugars

Dear Mr. Hirsch:

     Your letter of January 9, 1992, concerns the tariff and
quota status of colored non pareil seeds and colored sugar from
Brazil under the Harmonized Tariff Schedule of the United States
(HTSUS).

FACTS:

     In a ruling you received from the Customs Service at New
York ( 869115) dated December 11, 1991, the non pareil seeds were
described as containing 50.7 percent starch, 44.8 percent sugar,
and 4.5 percent moisture and color.  The colored sugar was said
to be virtually 100 percent sucrose with food colors.  The
products were to be imported in 50 to 100 pound bags or in 300
pound drums.  Since they were colored sugar products of Brazil,
and not to be further refined and improved in quality, following
U.S. note 3(a) and (b) to chapter 17, HTSUS, the ruling stated
that they would be classified and subject to the tariff-rate
quota allotment for Brazil in subheading 1701.91.2125, HTSUS.
The rate of duty is 1.406 cents per kilogram less 0.020668 cent
per kilogram for each degree under 100 degrees (and fractions of
a degree in proportion) but not less than 0.943854 cent per
kilogram.  For colored non pareil seeds and colored sugar not
entitled to the quota allotment, classification would be in
subheading 1701.91.2225, HTSUS, with a rate of duty of 37.386
cents per kilogram less 0.529 cent per kilogram for each degree
under 100 degrees (and fractions of a degree in proportion) but
not less than 24.161 cents per kilogram.

                              - 2 -

     In addition, the ruling pointed out that sugar products
classifiable under these two subheadings, which are not to be
further refined or improved in quality, are subject to an
additional agricutural license fee of 2.2 cents per kilogram.

ISSUE:

     Classification and quota status of colored non pareil seeds
and colored sugars from Brazil.

LAW AND ANAlYSIS:

     Essentially it is your request that these products be
classified at a higher rate of duty and be made subject to an
absolute quota.  You note that these products may be produced far
cheaper in Brazil than in the United States, and as a result an
importer has a price advantage over the domestic producer.  You
suggest, therefore, that the products be classified in subheading
1701.91.2225, HTSUS, which has a higher rate of duty.

     Effective October 1, 1990, pursuant to international
obligations, the United States replaced the absolute sugar quota
with the two-tiered tariff rate quota.  Brazil is one of many
designated countries which has a quota allocation.  Under such an
allocation, sugar from Brazil classifiable in the subheading is
required to be entered at the lower rate of duty (1701.91.21)
until the quota allocation is filled.  Imports of Brazilian sugar
in excess of the allocation would, of course, be classified in
subheading 1701.91.2225, HTSUS, at the higher rate.  However,
Customs has no authority to assess the higher rate of duty until
the quota allotment is filled.

     Since the sugar quota program is administered by the U.S.
Department of Agriculture, it is suggested that you discuss the
possibility of changing the quota status of these sugar products
with that agency.

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division