Tariff Classification Advance Ruling
Chai Tea Latte K-Cups

Applicant

Russell Karr
Twinings North America
2812 Twining Road
Greensboro, NC 27406
USA

Date of issuance of ruling: February 2, 2015

This is in response to a request submitted on your behalf by Gillian M. Jiwani of Geodis Wilson for an advance ruling on the tariff classification of Chai Tea Latte K-Cups. This product is manufactured by/exported from Twinings North America, Greensboro, North Carolina, USA.

TRS Number: 269173
Classification Number: 2101.20.00.90
Effective Date: February 2, 2015

Product Description

Chai Tea Latte K-Cups are a hot beverage preparation comprised of black tea, brown sugar, milk products, and other flavouring ingredients weighing 15 grams, packaged inside a disposable plastic drum with a foil seal. The K-Cup is designed to be used with the Keurig brewing system where the foil seal is perforated and hot water is percolated through the mixture to obtain the beverage.

Analysis and Justification

The Chai Tea Latte K-Cups' mixture is a blend of ingredients composed of black tea, brown sugar, milk products, and other flavouring ingredients.  The inclusion of sugar and dairy precludes this mixture from remaining a tea of heading 09.02.  WCO Explanatory Note, paragraph (X), of General Interpretative Rule 2(b) directs that mixtures being preparations, described as such in a heading, are to be classified under the provision of GIR 1.  Heading 21.01 provides for preparations with the basis of tea as such is the more appropriate heading. 

Furthermore, the heading 21.01 Explanatory Note, item (4)(b), states that the heading covers "tea preparations consisting of a mixture of tea, milk powder and sugar."

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 (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, Chai Tea Latte K-Cups is a preparation with the basis of tea of tariff item 2101.20.00.90.

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, Chai Tea Latte K-Cups is a preparation with the basis of tea of tariff item 2101.20.00.90.

Legislative/Administrative References

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 Canada Border Services Agency 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.

CBSA Contact

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

File Number

C-2014-008995

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