365 Evans Ave., Suite 606
Etobicoke, ON M8Z 1K2
Date of issuance of ruling:
This is in response to a request submitted on your behalf byNorth American Logistics Services Inc., for an advance ruling on the tariff classification of Clover Valley Cheese Dip. This product is manufactured by Berner Food & Beverage Inc., Dakota, IL.
The Clover Valley Cheese Dip is a cheddar flavoured processed cheese spread, packaged for retail sale in 425g and 454g glass jars. It is composed of water, fat (soybean oil & dairy fat), proteins (derived from milk) sugars and minerals. Although it can be heated and used as a sauce, it is primarily used as a pread or dip.
Analysis and Justification
Based on information provided, this product is a combination of milk products, soybean oil and flavourings. This product is excluded from heading 04.06 by the addition of the soybean oil. Note 1(b) to Chapter 4 states "The expression "dairy spreads", means a spreadable emulsion of the water-in-oil type, containing milk fat as the only fat in the product, with a milk fat content of 39% or more but less than 80% by weight". It is also excluded from heading 19.01 as it is not a preparation of goods of heading 04.01 to 04.04.
Departmental Memorandum D10-14-35 "The Tariff Classification of Sauces, Mixed Condiments and Mixed Seasonings" provides the definition that a dip is a sauce or dressing into which food is dipped before eating. Dips are intended to be served with food, as an accompaniment or condiment and are classified in heading 2103. The Clover Valley Cheese Dip is considered to be a sauce of heading 2103.
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.
The Clover Valley Cheese Dip is classified in accordance with GIR#1 as a dip under tariff classification 2188.8.131.52.
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 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.
Manager, Tariff Policy Unit 'B'
Trade Policy Division
- Date modified: