CBP Issues New ICP on Coffee
U.S. Customs and Border Protection (CBP) has issued a new informed compliance publication (ICP) entitled, What Every Member of the Trade Community Should Know About: Coffee
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The purpose of this new ICP is to provide details on the Harmonized Tariff Schedule (HTS) classification and entry requirements for coffee and coffee products.
Classification of Coffee Beans, Ground Coffee, and Coffee Substitutes
According to the new ICP, the Explanatory Notes (EN) allow for the following to be embraced within the scope of HTS 0901: raw coffee in all its forms; roasted coffee, whether or not decaffeinated or ground; husks and skins of coffee; and coffee substitutes, such as chicory, as long as they contain some coffee in any proportion. Currently, the coffee products classified in HTS Chapter 9 are not subject to quotas.
Classification of Instant Coffee and Coffee Extracts
Instant coffee, such as ground or freeze dried products available in supermarkets, and other extracts, essences, and concentrates of coffee, some of which are used in commercial coffee vending machines, do not come under HTS Chapter 9. Rather they are classified in HTS Chapter 21.
Classification of Coffee Preparations, Coffee Drinks and Sodas
The addition of other ingredients such as sweetening material to the products of HTS 2101.11 can change them into products covered in HTS 2101.12 as coffee preparations. Now, instead of being imported at a free rate of duty, they are subject to the quotas applicable for sugar-containing products described in the following Additional U.S. Notes to HTS Chapter 17: 2, 3, 4, 7, and 8.
Coffee drinks and sodas are not really classified as coffee products of Chapter 9 and Chapter 21 of the HTS. For example, coffee sodas are carbonated beverages that are imported for retail sale in bottles or cans. These usually consist of carbonated water, plus coffee and sweetening, and are classified in HTS Chapter 22, generally in subheading 2202.10.00. Adding milk or other ingredients throws the product out of subheading 2202.10 and into subheading 2202.90.90.90.
Country of Origin
According to the ICP, imports of roasted and instant coffee and coffee preparations are exempt from the marking requirements of 19 USC 1304 (a) and (b). As a result, neither the imported products nor their containers are required to be marked with the foreign country of origin.
However, the ICP notes that it is still necessary to determine the correct country of origin for these products even if it is not marked on the coffee products.
Also, if a product undergoes a substantial transformation in a country other than the originating country, the country of origin could change. For example, roasting coffee is considered a substantial transformation while decaffeinating it is not.
CBP states that the material in this publication is provided for general information purposes only. CBP cautions that because many complicated factors can be involved in customs issues, an importer may wish to obtain a ruling under CBP regulations 19 CFR Part 177, or to obtain advice from an expert who specializes in customs matters-for example, a licensed customs broker, attorney or consultant. Reliance solely on the general information in this pamphlet may not be considered reasonable care.
ICP on Coffee (issued August 2006) available at http://www.cbp.gov/linkhandler/cgov/toolbox/legal/informed_compliance_pubs/icp085.ctt/icp085.pdf