March 15, 2006 CBP Bulletin Notice on Microwave Popcorn
In the March 15, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 12), CBP issued a notice revoking a classification ruling on microwave popcorn. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions.
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According to CBP, the revocation is effective for subject merchandise entered or withdrawn from warehouse for consumption on or after May 14, 2006. CBP also states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Revocation of One Classification Ruling
Microwave popcorn. At issue is "Act II" brand microwave buttered popcorn available in three flavors. The three flavors contain some or all of the following ingredients: popcorn (maize), partially hydrogenated vegetable oil, salt, natural/artificial flavoring, and achiote (coloring). The flavorings and seasonings are packaged together with the popcorn in individual 99-gram packages that are designed to be heated in a microwave. The individual packages will be sold in boxes containing 28 packages.
CBP is issuing HQ 967900 in order to revoke NY H83710 and reclassify subject merchandise under HTS 2008.19.9090, which provides for preparations of nuts, peanuts (ground-nuts) and other seeds, etc., other, including mixtures: other; rather than under HTS 1005.90.4040, which provides for popcorn.
CBP explains that since the issuance of NY H83710, it has had a chance to review the classification of this merchandise and has decided that because of the addition of other ingredients to the microwave corn, the product now constitutes a preparation of corn kernels for popping. Thus, the classification in ruling NY H83710 is in error.
CBP states that the specific ingredient composition of subject merchandise has advanced them from being mixtures of popcorn kernels and other ingredients, to products that are preparations consisting of popcorn kernels with specific additional ingredients which are designed to facilitate the popping of the kernels and which have been included to impart a specific taste or flavor to the finished product.
Based on CBP's analysis, it finds that microwave popcorn packages are preparations that are more specifically provided for in HTS heading 2008.
(CBP notes that it received one comment in response to proposed HQ 967900 arguing that the microwave popcorn products should be classified by virtue of the essential character of the product, which was claimed to be imparted by the popcorn kernels; CBP disagreed and addresses the commenter's argument in this revocation ruling.)
new: HTS 2008.19.9090, 17.9%; previous: 1005.90.4040, 0.25/kg.
(See ITT's Online Archives or 01/06/06 news, 06010635, for proposed HQ 967900.)
March 15, 2006 CBP Bulletin (Vol. 40, No. 12) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_03152006_no12/