55 Lakeshore Blvd.,
Toronto, ON M5E 1A4
Date of issuance of ruling:
This is in response to your request for an advance ruling on the tariff classification of Four Loko malt-based alcohol beverage. This product is exported from Phusion Projects, Chicago, Illinois.
Four Loko is a line of malt-based, flavoured beverages with 8% alcohol. It is produced by fermenting wort into beer, filtered and blended with Phusion's proprietary blend of ingredients, including: flavouring, sugar, preservatives and water. It is packaged in 695ml cans and is available in the following flavours: Peach, Fruit Punch, Lemonade and Watermelon.
Analysis and Justification
This product is a fermented alcoholic beverage that is mixed with a non-alcoholic beverage as described in the Explanatory Notes to heading 22.06. This heading also covers mixtures of non-alcoholic beverages and fermented beverages and mixtures of fermented beverages of the foregoing headings of chapter 22, e.g. mixtures of lemonade and beer or wine, mixtures of beer and wine, having an alcoholic strength by volume exceeding 0.5% vol.
The product is excluded from consideration in heading 22.03 as a result of the wording in the Explanatory Notes to that heading. The Note, states in part, "cherries or other flavouring substances are sometimes added during fermentation". This product has the flavouring added after fermentation and is therefore excluded from heading 22.03.
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 (WCO) Explanatory Notes to the Harmonized Commodity Description and Coding System.
General Interpretative Rule 1 (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 and any relative Section and Chapter Notes. Similarly, General Interpretative Rule 6 (GIR 6) directs that classification shall be determined according to the terms of those subheadings and any related Subheading Notes.
In accordance with General Interpretative Rule 1 and 6, and with regard to the World Customs Organization's Explanatory Notes to the Harmonized Commodity Description and Coding System, Four Loko alcoholic beverage is classified 2206.00.92.30 as, other, of an alcoholic strength by volume exceeding 7% Vol. but not exceeding 22.9% Vol.
This ruling has been issued under paragraph 43.1(1)(c) of the Customs Act and will be honoured by the 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 number at the time of importation in either the description field of the B3 entry document or on the Canada Customs Invoice. Exporters or producers should quote the advance ruling 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 accordance with the procedures described in Memorandum D11-11-3. The ruling will be published on the CBSA website within 30 business days.
Manager, Tariff Policy Unit 'B'
Trade Policy Division
- Date modified: