Ms. Joelle Tremblay
15 de l'Apogée
Gatineau, QC J9A 2W3
Date of issuance of ruling:
This is is in respect of your request for an advance ruling on the tariff classification of Dashing Thru the Dough Peanut Butter (454g). The product is manufactured/exported by Peanut Principles, Albany, NY, USA.
According to the documentation provided, the product is a 16 oz (454 g) jar of peanut butter with special added brownie flavour. It is made from grilled and ground peanuts (non-GMO), dark chocolate (made from unsweetened chocolate, sugar, cocoa butter, soy lecithin and vanilla), sugar, cocoa powder, flour, safflower oil (non-GMO), sea salt and natural butter flavour (non-GMO, sunflower oil).
Analysis and Justification
Peanut butter, as defined in the Explanatory Note (EN) of heading 20.08, is generally classified under this heading whether it contains added salt, oil or various types of sweeteners provided that its essential character remains unchanged. However, Legal Note 2 of Chapter 18 indicates that heading 18.06, “includes sugar confectionery containing cocoa and, subject to Note 1 to this Chapter, other food preparations containing cocoa.” Legal Note 1 to the same Chapter states that, “this Chapter does not cover preparations under numbers 04.03, 19.01, 19.04, 19.05, 21.05, 22.02, 22.08, 30.03 and 30.04,” which does not include heading 20.08. These two Legal Notes are strengthened by the Explanatory Notes of the EN of this Chapter, which state that, “this Chapter covers cocoa (including cocoa beans) in all forms, cocoa butter, fat and oil and preparations containing cocoa (in any proportion).” A smiliar statement is made in the EN to heading 18.06.
Section 10 of the Customs Tariff Act specifies that the classification of imported goods shall be determined in accordance with the General Rules for the Interpretation (GRI) of the Harmonized System. Section 11 of the Customs Tariff Act provides that, in interpreting the headings and subheadings, regard shall be had to the Compendium of Classification Opinions to the Harmonized Commodity Description and Coding System and the Explanatory Notes to the Harmonized Commodity Description and Coding System, published by the World Customs Organization (WCO).
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.
Because the product is a food preparation identified as a jar of peanut butter containing cocoa put up for retail sale, it is excluded from Heading 20.08 owing to the presence of cocoa and because no other exceptions apply under GIRs 1 and 6 and Canadian Rule 1, this product is classified under 1806.90.90.19 of the Customs Tariff Act.
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 Tarriff 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. Should there be a change, 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 B3 entry document or on the 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 Administrative Monetary Penalty System.
All D-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.
Manager, Tariff Policy Unit ‘A’
Trade Policy Division
- Date modified: