HQ 083700: Tariff Classification of white chocolate, officially called confectioner's coating.

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 083700

                                    June 7, 1989

          CLA-2  CO:R:C:G  083700  SS

          CATEGORY: Classification

          Tariff No. : 1704.90.2005, 1704.90.2010, 1704.90.4000


          Mr. Richard Callebaut
          One Northbrook Place
          5 Revere Drive, Suite 200
          Northbrook, IL  60062


          RE:   Tariff Classification of white chocolate, officially called
                confectioner's coating.


          Dear Mr. Callebaut:

                This is in response to your letter dated February 7, 1989,
          addressed to our New York office on behalf of Callebaut of
          Belgium, requesting tariff classification for a product described
          as white chocolate under the Harmonized Tariff Schedule of the
          United States (HTSUS).

          FACTS:

                The merchandise under consideration is described as white
          chocolate, and is officially called confectioner's coating.  It
          is imported in blocks of 5 kilograms (11 lbs), and is used in the
          confectionery industry for different purposes.  The composition
          of three varieties of the subject merchandise is stated to be as
          follows:


          INGREDIENTS                   W4NV        CW2         WNV

          Cocoa Butter                  30.59       26.61       27.79
          Sugar                         54.06       48.52       41.01
          Full milk Powder              14.92       24.43       30.79
          Lecithin & Vanillin            0.43        0.44        0.41

          ISSUE:

                Whether the subject white chocolate, officially called
          confectionery's coating, is properly classifiable under
          subheading 1704.90.2005, 1704.90.2010, or 1704.90.4000.














                                         -2-


          LAW AND ANALYSIS:

                Classification under the HTSUS is governed by the General
          Rules of Interpretation (GRI's).  GRI 1 provides that
          classification is determined first in accordance with the terms
          of the headings and any relative Section or Chapter notes.

                The subject merchandise is described as white chocolate,
          and officially known as confectioner's coating.  It is imported
          in 5 kilogram blocks and is used by the confectionery industry
          for different purposes.  In a subsequent letter dated May 2,
          1989, you state that since January 1, the local Customs offices
          in San Francisco and New York have classified the subject
          merchandise under subheading "1704.90.20.05.9 or 10.20" (we
          assume you mean subheading 1704.90.20059 or 1704.90.2010).  You
          claim that among the reasons for such a classification
          (1704.90.2005) are that the subject merchandise is sold to
          housewives in the 5 kilogram blocks, and that the same
          merchandise can be delivered in any size (2 ounce bars, half
          pound bars, 1 pound bars and 11 pounds bars), without changing
          the original composition, taste, physical, chemical or biological
          conditions.

                Subheading 1704.90.2005, HTSUS, provides for other sugar
          confectionery (including white chocolate), not containing cocoa,
          put up for retail sale.  Subheading 1704.90.2010, HTSUS, provides
          for other sugar confectionery (including white chocolate), not
          containing cocoa, other than put up for retail sale.  Subheading
          1704.90.4000, HTSUS, provides for sugar confectionery other than
          confections or sweetmeats ready for consumption, articles of milk
          or cream.

                For purposes of tariff classification, the merchandise in
          issue in neither ready for consumption nor put up for retail
          sale.  The facts state that the white chocolate in issue is used
          in the confectionery industry for many purposes.  The obvious
          implications of such a statement is that the white chocolate is
          not ready for consumption because it will be put to a variety of
          uses by the confectionery industry.  Also, despite your claim, it
          is unlikely that the average "housewife" will buy white chocolate
          in 5 kilogram blocks.  Further, the fact that the subject white
          chocolate can be delivered in the sizes previously described so
          as to be ready for home consumption or retail sale is not
          controlling.  Principles of tariff classification dictate that
          merchandise is classifiable in the form in which it is imported.















                                         -3-

                However, whether the subject merchandise is ready for
          retail sale or consumption is not determinative as to the proper
          classification in the instant case.  This issue was addressed
          only in response to the claims submitted in the ruling request.
          The subject merchandise contains milk ranging in amounts from
          14.92 percent to 30.79 percent.  Based on this composition, the
          subject merchandise is specifically described under subheading
          1704.90.4000, HTSUS.  Further, classification under this
          subheading is consistent with the intent of the quota
          restrictions of the U.S. Department of Agriculture.


          HOLDING:

                In view if the foregoing, the subject merchandise, white
          chocolate officially called confectioner's coating, is properly
          classifiable under subheading 1704.90.4000, HTSUS, subject to
          quota restrictions of subheading 9904.10.60.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Ruling Division