Tariff Classification Advance Ruling
Banana flavoured milk drink

Applicant

Mr. Chad Chung
Seoul Trading Corporation
1–1450 Broadway Street
Port Coquitlam, B.C. V3C 2M8

Date of issuance of ruling: September 21, 2015

This is in response to a request submitted on your behalf by Pacific Customs Brokers Ltd, for an advance ruling on the tariff classification of a banana-flavoured milk drink. This product is manufactured by and exported from Binggrae Co. Ltd, of 34-5 Paichai JeongDong Bldg, Jeong-Dong, Jung-Gu, Seoul 100-120, Korea.

TRS Number: 271732
Classification Number: 2202.90.49.20
Effective Date: September 21, 2015

Product Description

Based on the information provided, the banana-flavoured milk drink contains milk, water, sugar, skim milk powder, whey powder, banana juice concentrate (0.32%), artificial flavors, mono- and diglycerides of fatty acids, carrageenan, guar gum, and annatto for color. This drink comes in a ready to drink, 200 ml tetra pak, on which the ingredients are provided on one side and the nutrition facts on the other.

Analysis and Justification

Heading 04.01 covers milk; however, products containing flavouring and sugar are excluded and are to be classified elsewhere in the nomenclature. Heading 22.02 provides in part for non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09. Tariff item 2202.90 provides for beverages containing milk. The banana-flavoured milk drink is considered a beverage as it is ready to drink and contains flavouring and sugar; it is therefore excluded from heading 04.01 and classified in subheading 2202.90.

Decision

Section 10 of the Customs Tariff directs that classification of imported goods shall be determined in accordance with the General Rules for the Interpretation of the Harmonized System. Section 11 of the Customs Tariff states that in interpreting the headings and subheadings, regard shall be had to the World Customs Organization's Explanatory Notes to the Harmonized Commodity Description and Coding System.

General Interpretative Rule (GIR) 1 directs that titles of Sections, Chapters and sub-Chapters are provided for ease of reference only. For legal purposes, classification shall be determined according to the terms of the heading (4 digits). Similarly, GIR 6 directs that classification shall be determined according to the terms of a subheading (6 digits).

In accordance with GIR 1 and 6 the banana-flavored milk drink is properly classified under tariff classification 2202.90.49.20.

Legislative/Administrative References

This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the Canada Border Services Agency (CBSA) for future importations of the goods specified, provided the material facts and circumstances remain as originally presented; all conditions in the ruling have been met; the ruling has not been modified, revoked, revised, or cancelled; and the Customs Tariff legislation has not changed. Should there be a change in the material facts or circumstances pertaining to the goods, you must notify the CBSA as soon as possible. You may request that the advance ruling be modified or revoked as of the date of the change.

Importers should quote the advance ruling TRS number at the time of importation in either the description field of the Form B3-3 Canada Customs Coding Form entry document or on the Form CI1 Canada Customs Invoice. Exporters or producers should quote the advance ruling TRS number on the Certificate of Origin or commercial invoice accompanying the goods.

Should you disagree with this advance ruling, you may file a dispute notice under subsection 60(2) of the Customs Act within 90 days of the date of issuance. Please see the procedures outlined in Appendix C of the CBSA's Memorandum D11-11-3, Advance Rulings for Tariff Classification.

This advance ruling is considered 'reason to believe' for the purposes of section 32.2 of the Customs Act and the CBSA's Administrative Monetary Penalty System, described in Memorandum D22-1-1.

All Memoranda referenced in this letter may be accessed on the CBSA website.

Consent to the Public Release of the Advance Ruling

As per your consent statement, we will release this advance ruling to the public, in both official languages, in accordance with the procedures described in Memorandum D11-11-3. The ruling will be published on the CBSA website in 30 days.

CBSA Contact

Mark Grant
Manager, Tariff Policy Unit 'B'
Trade Policy Division
Headquarters, Ottawa

File Number

C-2015-006578

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