HQ 086634: Grated Parmesan Cheeses Blended in Canada

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                          HQ 086634
                        June 5, 1990
CLA-2 CO:R:C:G  086634 SLR

CATEGORY: Classification

TARIFF NO.: 0406.20.5020, 9904.10.45

Mr. Blair Laing
McCain Refrigerated Foods, Inc.
1075 North Service Road West
Oakville, Ontario
Canada L6M 2G2

RE: Grated Parmesan Cheeses Blended in Canada

Dear Mr. Laing:

     This ruling is in response to your letter of February 2,
1990, requesting the proper classification of a blended Parmesan
cheese product under the Harmonized Tariff Schedule of the United
States Annotated (HTSUSA).

FACTS:

     The subject grated Parmesan product consists of Canadian,
New Zealand, and Italian parmesans blended and packed in Canada.
It is imported in 250 gram canisters intended for retail sale
and carries the Presidents Choice label.

ISSUE:

     What is the proper classification of the subject product
under the HTSUSA?

LAW AND ANALYSIS:

     Classification of merchandise under the HTSUSA is in
accordance with the General Rules of Interpretation (GRI's),
taken in order.  GRI 1 provides that classification is determined
according to the terms of the headings and any relevant section
or chapter notes.

     Heading 0406, HTSUSA, provides for cheese and curd.  The
Explanatory Notes, which represent the official interpretation of
the tariff at the international level, offer guidance in
understanding the headings.  The Explanatory Note to Heading 0406
indicates that this heading covers all kinds of cheese including
medium-hard cheese and hard cheese.  Parmesan cheese is listed as
one of the exemplars for this provision.


                              -2-

     Because the subject product consists of three parmesan
cheeses made from cow's milk, it is classifiable in subheading
0406.20.5020, HTSUSA.  Products classifiable in this subheading
are subject to the United States Department of Agriculture (USDA)
licensing requirements and quota restrictions under subheading
9904.10.45, HTSUSA.  Subheading 9904.10.45 provides quantitative
limitations for "Italian-type cheeses, made from cow's milk, not
in original loaves...and cheese substitutes for cheese
containing, or processed from, such Italian-type cheeses, whether
or not in original loaves."  The blending of the three cheeses,
one part from each of the named countries, does not substantially
transform them into a new product in Canada that possesses
Canadian origin for tariff and quota purposes.  Instead, the end
product is parmesan cheese, just as the raw materials before
blending were also parmesan cheese.

     Under current USDA licensing requirements, cheese of the
variety that is proposed to be imported is not permitted entry
into the United States.  The Canadian cheese alone may be
imported under a USDA license and would be subject to the "other"
absolute quota quantity limit of 13,063 kilograms per year.  The
remaining cheeses, however, may not enter the United States from
Canada because the USDA regulations require a Through Bill of
Lading and an invoice from the seller in the country of origin to
a purchaser in the United States.  If there is an interruption in
the flow of the goods, as in the situation outlined here, this is
considered a "diversion" after which no license may be issued.
For further information, please contact the Import Licensing
Group, Foreign Agricultural Service, Room 6616-S, U.S. Department
of Agriculture, Washington, D.C. 20250.

HOLDING:

     The merchandise in issue is classifiable in subheading
0406.20.5020, HTSUSA, which provides for parmesan cheese made
from cow's milk, dutiable at 15 percent ad valorem.




                                Sincerely,



                                John Durant, Director
                                Commercial Rulings Division