N354282

N354282 October 17, 2025 CLA-2-18:OT:RR:NC:N5:232 CATEGORY: Classification; Trade Program or Trade Agreement TARIFF NO.: 1806.20.9900; 9903.01.04; 9903.01.27 Mr. Michael Roll Roll & Harris LLP 2121 Avenue of the Stars Los Angeles, CA 90067 RE: The tariff classification and eligibility under the United States-Mexico-Canada Agreement (USMCA) of a Chocolate Blend from Mexico Dear Mr. Roll: In your letter dated September 27, 2025, you requested a ruling on the tariff classification and eligibility under the USMCA of a Chocolate Blend on behalf of your client, Rafi Industries, Inc. (Des Plaines, IL). An ingredients breakdown, production description, and product specifications accompanied your inquiry. The subject merchandise is described as a Chocolate Blend. It is said to contain cocoa butter that is 99 percent by weight from Malaysia, Indonesia, South Africa, and Ivory Coast, and chocolate liquor that is 1 percent by weight from the same countries. All of the ingredients are sent to Mexico where they are blended into the finished chocolate blend. The blend at issue will be imported to the United States in 20 to 25 kg plastic lined cartons or 1000 kg kraft type totes. The United States importer will sell the blend to a customer to manufacture chocolate, chocolate fillings, chocolate blends, and chocolate coatings. Classification: The applicable subheading for the Chocolate Blend will be 1806.20.9900, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Chocolate and other food preparations containing cocoa...Other preparations in blocks, slabs or bars, weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg…...other...other...other…other…other.” The general rate of duty will be 8.5 percent ad valorem. USMCA: The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020 of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (“GN”) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states the following: For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if – the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries; the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials; the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); Production of the Chocolate Blend in Mexico results in an originating good from a USMCA Rules of Origin perspective. For goods classified under subheading 1806.20.9900, HTSUS, the applicable Rule of Origin requires the following: “A change to subheading 1806.20 from any other heading.” In the case of the instant product, this requirement is met. The chocolate liquor in the finished product is classified in Heading 1803, HTSUS, a heading other than Heading 1806. The cocoa butter in the finished product is classified in Heading 1804, HTSUS, a heading other than Heading 1806. As such, the requisite changes in classification occur that are consistent with the USMCA’s Rules of Origin and, thus, result in a USMCA originating good. Based on the facts provided, the Chocolate Blend qualifies for USMCA preferential treatment because it meets the requirements of HTSUS General Note 11(b)(iii). The merchandise will therefore be entitled to a free rate of duty under the USMCA upon compliance with all applicable laws, regulations, and agreements. Products of Mexico as provided by heading 9903.01.01 in Section XXII, Chapter 99, Subchapter III, U.S. Note 2(a), HTSUS, other than products classifiable under headings 9903.01.02, 9903.01.03, 9903.01.04, and 9903.01.05, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.01, in addition to subheading 1806.20.9900, HTSUS, listed above. Articles that are entered free of duty under the terms of general note 11 to the HTSUS (U.S.-Mexico-Canada Agreement (USMCA), including any treatment set forth in subchapter XXIII of Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be subject to the additional ad valorem duties provided for in heading 9903.01.01. If your product is entered duty free as originating under the USMCA, you must report heading 9903.01.04, HTSUS, in addition to subheading 1806.20.9900, HTSUS. Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products of Mexico are not subject to reciprocal tariffs. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.27, in addition to subheading 1806.20.9900, HTSUS, listed above. The tariffs and additional duties cited herein are current as of this ruling’s issuance. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at (301) 575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Frank Troise at frank.l.troise@cbp.dhs.gov. Sincerely, (for) Evan Conceicao Designated Official Performing the Duties of the Division Director National Commodity Specialist Division

set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at (301) 575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Frank Troise at frank.l.troise@cbp.dhs.gov. 
Sincerely,
 (for) Evan Conceicao Designated Official Performing the Duties of the Division Director National Commodity Specialist Division