HQ 086384: Modification of NYRL 837816; Chocolate Sprinkles; Other Chocolate Preparation of Subheading 1806.90, HTSUSA; Not Other Chocolate Preparation Imported in Bulk Form of Subheading 1806.20, HTSUSA.

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 086384

                      October 10, 1991

CLA-2 CO:R:C:F 086384 SLR

CATEGORY: Classification

TARIFF NO.: 1806.90.0090; 9904.10.66

Mr. Henry Kaplan
DeCroix Specialty Foods, Co.
58-25 52nd Avenue
Woodside, NY   11377

RE:  Modification of NYRL 837816; Chocolate Sprinkles;
     Other Chocolate Preparation of Subheading 1806.90, HTSUSA;
     Not Other Chocolate Preparation Imported in Bulk Form of
     Subheading 1806.20, HTSUSA.

Dear Mr. Kaplan:

     In New York Ruling Letter (NYRL) 837816 issued March 16,
1989, dark chocolate sprinkles were classified in subheading
1806.20.4060, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for other chocolate
preparations imported in bulk form, dutiable at 5 percent
ad valorem, with absolute quota restrictions of subheading
9904.10.66, HTSUSA, applying.  We have since reviewed that ruling
and have found it to be in error.  The correct classification is
as follows.

FACTS:

     The dark chocolate sprinkles were stated to contain
43.19 percent chocolate liquor, 0.94 percent cocoa butter,
53.33 percent sugar, 2.51 percent milk powder, and 0.03 percent
vanillin.  Imported from Belgium, the sprinkles were packaged in
containers of 2.5 kilograms.

ISSUE:

     What is the proper classification of the sprinkles under
the HTSUSA?






                              -2-

LAW AND ANALYSIS:

     Subheading 1806.20, HTSUSA, covers chocolate and other
food preparations imported in bulk form.  It is Customs position
that the product at issue, although shipped in bulk quantities,
does not qualify as a "bulk form" for tariff purposes.  Rather,
sprinkles are a finished article -- a product that will not
undergo material change after importation.  Consequently, the
subject product is not classifiable in subheading 1806.20.

HOLDING:

     The product at issue is classifiable in subheading
1806.90.0090, HTSUSA, which provides for chocolate and other food
preparations containing cocoa.  The rate of duty is 7 percent
ad valorem.  The product is still subject to the absolute quota
restriction of subheading 9904.10.66, HTSUSA, however.

     This notice to you should be considered a modification of
NYRL 837816 under 19 CFR 177.9(d)(1).  It is not to be applied
retroactively to NYRL 837816 (19 CFR 177.9(d)(2)) and will not,
therefore, affect past transactions for the importation of your
client's merchandise under that ruling.  However, for the
purposes of future transactions in merchandise of this type,
NYRL 837816 will not be valid precedent.  We recognize that
pending transactions may be adversely affected by this
modification, in that current contracts for importations arriving
at a port subsequent to this decision will be classified pursuant
to it.  If such a situation arises, your client may, at its
discretion, notify this office and apply for relief from the
binding effects of this decision as may be warranted by the
circumstances.


                                Sincerely,



                                John Durant, Director
                                Commercial Rulings Division