HQ 085580: Pure Butter Ghee

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 085580

                                  January 16, 1990


          CLA-2 CO:R:C:G  085580  SS

          CATEGORY: Classification

          TARIFF NO.: 0405.00.8020; 0405.00.8040


          Mr. Ashwin Patel
          Venus Enterprises
          35, Price Creek Road
          Bremen, GA 30110

          RE:  Pure Butter Ghee

          Daar Mr. Patel:

                This letter is in response to your request on behalf of the
          "alpha trading company" for a classification ruling for pure
          butter ghee under the Harmonized Tariff Schedule of the United
          States (HTSUS).

          FACTS:

                The label on a submitted sample can containing one kilogram
          of ghee stated that the product was made from pure dairy butter
          of the milk of "Dairy Cows", having 99.9 percent butter fat
          ingredient content, processed and packed in the United Arab
          Emirates.  Pure butter ghee is clarified and purified butter
          containing more than 99 percent by weight of butter fat, with no
          salts or moisture.

          ISSUE:

                What is the proper tariff classification for pure butter
          ghee?
























                                         -2-


          LAW AND ANALYSIS:

                The product butter oil is described in the U.S. Tariff
          Commission Report to Congress, cited below as follows:

                Butter oil is a concentrated butterfat product made from
                butter, cream, or milk.  It usually contains 99.5 percent
                or more of butter fat.  Butter oil is also known as
                dehydrated butter or anhydrous milk fat; it is a bland,
                yellowish product, lacking in butter flavor, and having a
                jelly-like consistency at room temperature.

                When made from fresh milk or cream, the product is usually
                called anhydrous milk fat.  Milk or cream is first
                processed to form plastic cream (a concentrated cream
                containing over 80 percent butterfat) and then the
                remaining water and curd are removed.  When made from
                butter, the product is usually known as butter oil and
                sometimes as dehydrated butter.

          See The U.S. Tariff Commission report to Congress, Dairy
          Products, Report of Investigation No. 332-53 Under Section 332 of
          the Tariff Act of 1930 Pursuant to a Resolution of the Committee
          on Ways and Means of the House of Representatives Adopted May 10,
          1967, TC Publication 233, Washington, D.C., March 1968.
          (Report).

                Subheading 0405.00.80, HTSUS, provides for fats and oils
          derived from milk other than butter.  Subheading 0405.00.8020,
          HTSUS, provides for other fats and oils derived from milk, other
          than butter; anhydrous milk fat.  Subheading 0405.00.8040, HTSUS,
          provides for other fats and oils derived from milk, other than
          butter; other than anhydrous milk fat.

                Based on the above referenced Report, butter oil derived
          from milk cream, having at least 99.5 percent butterfat content,
          is usually called anhydrous milk fat.  Accordingly, the subject
          merchandise is properly classifiable under subheading
          0405.00.8020, HTSUS.

                When imported ghee is made from butter, and has at least
          99.5 percent butterfat content, the resulting product is usually
          known as butter oil or dehydrated butter, and is properly
          classifiable in subheading 0405.00.8040, HTSUS.
          
















                                         -3-


          HOLDING:

                Imported ghee made from fresh milk, having at least 99.5
          percent of butterfat content, is properly classifiable in
          subheading in  subheading 0405.00.8020, HTSUS, which provides for
          other fats and oils derived from milk, other than butter;
          anhydrous milk fat, and is dutiable at a rate of 10 percent ad
          valorem.

                Imported ghee made from butter, having at least a 99.5
          percent butterfat content, is properly classifiable in subheading
          0405.00.8040, HTSUS, which provides for other fats and oils
          derived from milk, other than butter; other than anhydrous milk
          fat, and is dutiable at a rate of 10 percent ad valorem.

                Products classifiable in subheadings 0405.00.8020 and
          0405.00.8040, HTSUS, are subject to the quota quantity
          restrictions of subheading 9904.10.24, HTSUS, which limits the
          amount of such products which may be imported from other
          countries to an annual quota quantity of 544,310 kilograms.  This
          quota is administered on a first-come, first-served basis.  This
          quota opens on January 1 of each year.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division































          6 cc: A.D., N.Y. Seaport
          SS library/peh
          084975 SS