Notice2025-07021
Receipt of Domestic Interested Party Petition Concerning the Tariff Classification of Cane Sugar Molasses and Liquid Sugar
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 23, 2025
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
U.S. Customs and Border Protection (CBP) has received a petition submitted on behalf of a domestic interested party requesting the reclassification, under the Harmonized Tariff Schedule of the United States (HTSUS), of certain cane sugar molasses and liquid sugar. CBP currently classifies the subject cane sugar molasses under subheading 1703.10.30, HTSUS, as molasses, and the liquid sugar under subheading 1702.90.40, HTSUS. Petitioner contends that the proper classification for the subject cane sugar molasses and liquid sugar is under subheading 1702.90.10, HTSUS, or subheading 1702.90.20, HTSUS, as "sugar syrups." This document invites comments regarding the correctness of the current classification.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 77 (Wednesday, April 23, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 77 (Wednesday, April 23, 2025)]
[Notices]
[Pages 17072-17074]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-07021]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
[Docket No. USCBP-2025-0013]
Receipt of Domestic Interested Party Petition Concerning the
Tariff Classification of Cane Sugar Molasses and Liquid Sugar
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: Notice of receipt of domestic interested party petition;
solicitation of comments.
-----------------------------------------------------------------------
SUMMARY: U.S. Customs and Border Protection (CBP) has received a
petition submitted on behalf of a domestic interested party requesting
the reclassification, under the Harmonized Tariff Schedule of the
United States (HTSUS), of certain cane sugar molasses and liquid sugar.
CBP currently classifies the subject cane sugar molasses under
subheading 1703.10.30, HTSUS, as molasses, and the liquid sugar under
subheading 1702.90.40, HTSUS. Petitioner contends that the proper
classification for the subject cane sugar molasses and liquid sugar is
under subheading 1702.90.10, HTSUS, or subheading 1702.90.20, HTSUS, as
``sugar syrups.'' This document invites comments regarding the
correctness of the current classification.
DATES: Comments must be received on or before June 23, 2025.
ADDRESSES: Please submit comments, identified by docket number, by the
following method:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments via docket number
USCBP-2025-0013.
Instructions: All submissions received must include the agency name
and docket number for this notice of domestic interested party petition
concerning the tariff classification of cane sugar molasses and liquid
sugar. All comments received will be posted without change to <a href="https://www.regulations.gov">https://www.regulations.gov</a>, including any personal information provided.
Docket: For access to the docket to read background documents,
exhibits, or comments received, go to <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Marie Durane, Food, Textiles and
Marking Branch, Regulations and Rulings, Office of Trade, U.S. Customs
and Border Protection, at (202) 325-0984 or by email at
<a href="/cdn-cgi/l/email-protection#3a575b48535f145e4f485b545f7a59584a145e5249145d554c"><span class="__cf_email__" data-cfemail="e28f83908b87cc869790838c87a2818092cc868a91cc858d94">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
A petition was filed under section 516 of the Tariff Act of 1930,
as amended (19 U.S.C. 1516), on behalf of the American Sugar Coalition
(Petitioner or ASC) and its members. ASC is a national coalition that
consists of sugar beet and sugar cane farmers, sugar cane millers,
sugar beet processors, and sugar cane refiners, either through their
membership in various trade associations, or in their individual
capacity. Members of the ASC individually manufacture, produce, or
wholesale raw and refined sugar in the United States, and Petitioner
represents that they produce over 95 percent of all raw and refined
sugar in the United States. ASC meets all the requirements of a
domestic interested party set forth in 19 U.S.C. 1516(a)(2) and section
175.3(a) in title 19 of the Code of Federal Regulations (19 CFR
175.3(a)).
In New York Ruling Letter (NY) N309706 (March 10, 2020), CBP
classified the product described as refiner's molasses in subheading
1703.10.3000, Harmonized Tariff Schedule of the United States Annotated
(HTSUSA),\1\ which provides for ``Molasses resulting from the
extraction or refining of sugar: Cane Molasses: Imported for (a) the
commercial extraction of sugar or (b) human consumption.'' In NY
N324972 (June 24, 2022), CBP classified liquid sugar in subheading
1702.90.4000, HTSUSA, which provides for ``Other sugars, including
chemically pure lactose, maltose, glucose and fructose, in solid form;
sugar syrups not containing added flavoring or coloring matter;
artificial honey, whether or not mixed with natural honey; caramel:
Other, including invert sugar and other sugar and sugar syrup blends
containing in the dry state 50 percent by weight of fructose: Derived
from sugar cane or sugar beets: Other: Other.''
---------------------------------------------------------------------------
\1\ Please note that when referencing a heading or subheading up
to the 8-digit level of the Harmonized Tariff Schedule of the United
States, CBP cites to the Harmonized Tariff Schedule of the United
States or ``HTSUS.'' When referencing a 10-digit subheading level of
the Harmonized Tariff Schedule of the United States, CBP cites to
the Harmonized Tariff Schedule of the United States Annotated or
``HTSUSA,'' which is used for statistical reporting purposes.
---------------------------------------------------------------------------
[[Page 17073]]
Petitioner contends that the refiner's molasses and liquid sugar,
which were the subject of the two rulings, and the cane sugar molasses
that is currently being imported at the Port of Buffalo are classified
in subheading 1702.90.1000, HTSUSA, which provides for ``Other sugars,
including chemically pure lactose, maltose, glucose and fructose, in
solid form; sugar syrups not containing added flavoring or coloring
matter; artificial honey, whether or not mixed with natural honey;
caramel: Other, including invert sugar and other sugar and sugar syrup
blends containing in the dry state 50 percent by weight of fructose:
Derived from sugar cane or sugar beets: Containing soluble non-sugar
solids (excluding any foreign substances, including but not limited to
molasses, that may have been added to or developed in the product)
equal to 6 percent or less by weight of the total soluble solids:
Described in additional U.S. note 5 to this Chapter and entered
pursuant to its provisions,'' or in subheading 1702.90.2000, HTSUSA, if
not described in additional U.S. Note 5 to Chapter 17, HTSUS, and not
entered pursuant to its provisions.
Applicable Legal Principles
Classification under the HTSUS is determined in accordance with the
General Rules of Interpretation (GRIs) and, in the absence of special
language or context which otherwise requires, by the Additional U.S.
Rules of Interpretation (ARIs). GRI 1 provides that the classification
of goods shall be determined according to the terms of the headings and
any relative section or chapter notes. In the event that the goods
cannot be classified solely on the basis of GRI 1, and if the headings
and legal notes do not otherwise require, GRIs 2 through 6 may be
applied in order.
Additional U.S. Note (AUSN) 10 to Chapter 17, HTSUS, provides that
``Heading 1703 does not include products derived from sugar cane or
sugar beet and containing soluble non-sugar solids (excluding any
foreign substance that may have been added or developed in the product)
equal to 6 percent or less by weight of the total soluble solids.''
The Explanatory Notes (ENs) to the Harmonized Commodity Description
and Coding System represent the official interpretation of the tariff
at the international level. While neither legally binding nor
dispositive, the ENs provide a commentary on the scope of each heading
of the HTSUS and are generally indicative of the proper interpretation
of these headings. See Treasury Decision (T.D.) 89-80, 54 FR 35127,
35128 (August 23, 1989). The ENs for heading 17.02, state, in pertinent
part, that the heading also covers ``sugar syrups'' which include
``juices and syrups obtained during the extraction of sugars from sugar
beet, sugar cane, etc.'' Moreover, the ENs for heading 17.03, state,
the following:
Molasses of this heading is obtained only as a result of the
extraction or refining of sugar. It is most commonly obtained as a
normal by-product resulting from the extraction or refining of beet
or cane sugar or from the production of fructose from maize (corn).
It is a brown or blackish viscous substance containing an
appreciable amount of sugar which cannot readily be crystallised.
However, it may be powdered.
Beet sugar molasses is not normally eaten as such, but certain
refined forms of sugar cane molasses and corn molasses are suitable
for human consumption and are sold as treacle or as table syrups.
The main uses of molasses are as the raw material from which
alcohols and alcoholic beverages are distilled (e.g., rum from sugar
cane molasses), in the preparation of cattle foods and coffee
substitutes. It is also sometimes used for the extraction of sugar.
Molasses of this heading may be decolourised, coloured or
flavoured.
Elaboration of the Petitioner's Views
Petitioner contends that the proper classification for the subject
cane sugar molasses and liquid sugar is in subheading 1702.90.1000,
HTSUSA, which provides for ``Other sugars, including chemically pure
lactose, maltose, glucose and fructose, in solid form; sugar syrups not
containing added flavoring or coloring matter; artificial honey,
whether or not mixed with natural honey; caramel: Other, including
invert sugar and other sugar and sugar syrup blends containing in the
dry state 50 percent by weight of fructose: Derived from sugar cane or
sugar beets: Containing soluble non-sugar solids (excluding any foreign
substances, including but not limited to molasses, that may have been
added to or developed in the product) equal to 6 percent or less by
weight of the total soluble solids: Described in additional U.S. note 5
to this Chapter and entered pursuant to its provisions,'' or in
subheading 1702.90.2000, HTSUSA, if not described in additional U.S.
Note 5 to Chapter 17, HTSUS, and not entered pursuant to its
provisions, and therefore are appropriately classified as ``sugar
syrups'' under subheading 1702.90.1000, HTSUSA, or subheading
1702.90.2000, HTSUSA, pursuant to GRI 1.
Petitioner argues that the liquid sugar product in NY N324972, the
refiner's molasses in NY N309706, and the cane sugar molasses that is
currently being imported at the Port of Buffalo are cane sugar run-off
syrup and not molasses as described in heading 1703, HTSUS.
Specifically, Petitioner argues that the products do not meet the
requirements of AUSN 10 to Chapter 17, HTSUS, and the requirements in
the ENs to heading 1703, HTSUS. In addition, with respect to NY
N324972, Petitioner argues that the ruling lacks details regarding the
product's soluble non-sugar solid content, and whether or not any
foreign substances were added during the manufacturing process and, as
a result, the ruling should be reconsidered.
Based on these factors, Petitioner urges CBP to find that the
subject cane sugar molasses and liquid sugar are ``sugar syrups.'' It
is Petitioner's view that the products are cane sugar run-off syrups
that do not contain over six percent soluble non-sugar solids, unless a
refinery is deliberately adding a foreign substance during the
manufacturing process or deliberately causing a foreign substance to be
developed in the product by adjusting its refining process to operate
in a manner that is not commercially or economically reasonable.
Moreover, Petitioner argues that the products do not have the physical
and chemical characteristics of molasses. In support of its argument,
Petitioner relies on the industry standard production process for
molasses, the dictionary definitions of molasses and the ordinary
meaning of molasses in the trade, and the legislative history of the
tariff provisions covering sugar and molasses.
Analysis Used by CBP in Prior Rulings
Subheading 1703.10.3000, HTSUSA, provides for ``Molasses resulting
from the extraction or refining of sugar: Cane Molasses: Imported for
(a) the commercial extraction of sugar or (b) human consumption.''
Heading 1703, HTSUS, applies to molasses ``resulting from the
extraction or refining of sugar.'' The ENs to heading 17.03 HTSUS,
state, in pertinent part, that, ``Molasses of this heading is obtained
only as a result of the extraction or refining of sugar. It is most
commonly obtained as a normal by-product resulting from the extraction
or refining of beet or cane sugar or from the production of fructose
from maize (corn).'' AUSN 10 to Chapter 17, HTSUS, specifies that the
type of molasses covered by heading 1703, HTSUS, includes ``products
derived from sugar cane or sugar beet and containing soluble nonsugar
solids (excluding any foreign substance that may have been added or
developed in the product) equal to 6 percent or less by weight of the
total soluble solids.'' In NY N309706, the subject refiner's molasses
is refined from Brazilian raw
[[Page 17074]]
cane sugar. The ruling provides that, ``[t]he raw cane sugar is melted,
purified, crystallized, mixed with partially recovered sugar, and the
residual is removed.'' The refiner's molasses is said to have a total
sugar content of 64.4 percent composed of 2.1 percent fructose, 2.3
glucose, and 60 percent sucrose. The refiner's molasses in NY N309706
is classified per GRIs 1 and 6 as molasses in subheading 1703.10.3000,
HTSUSA, because it meets the terms of AUSN 10 to Chapter 17, HTSUS, and
the ENs to heading 17.03, HTSUS.
Subheading 1702.90.4000, HTSUSA, provides for ``Other sugars,
including chemically pure lactose, maltose, glucose and fructose, in
solid form; sugar syrups not containing added flavoring or coloring
matter; artificial honey, whether or not mixed with natural honey;
caramel: Other, including invert sugar and other sugar and sugar syrup
blends containing in the dry state 50 percent by weight of fructose:
Derived from sugar cane or sugar beets: Other: Other.'' The ENs to
heading 17.02, HTSUS, provide for sugar syrups, and include ``juices
and sugars'' obtained during the extraction of sugars from sugar beet,
sugar cane, etc. In NY N324972, the liquid sugar contains 66.7 percent
sugar, 33.3 percent water and trace amounts of calcium hydroxide. The
liquid sugar is made from raw cane sugar from Brazil that is
granulated, diluted with water, heated, filtered, and packed. The
liquid sugar in NY N324972 is classified under subheading 1702.90.4000,
HTSUSA, pursuant to GRIs 1 and 6, because the product is liquid sugar
made from the extraction of sugars in sugar cane.
Comments
Pursuant to 19 CFR 175.21, before making a determination on this
matter, CBP invites written comments on the petition, from interested
parties.
The domestic interested party petition concerning the tariff
classification of cane sugar molasses and liquid sugar, as well as all
comments received in response to this notice, will be available for
public inspection on the docket at <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Authority
This notice is published in accordance with 19 U.S.C. 1516 and 19
CFR 175.21.
Pete Flores, Acting Commissioner, having reviewed and approved this
document, has delegated the authority to electronically sign the
document to the Director (or Acting Director, if applicable) of the
Regulations and Disclosure Law Division of CBP, for purposes of
publication in the Federal Register.
Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings,
Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2025-07021 Filed 4-22-25; 8:45 am]
BILLING CODE 9111-14-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on April 23, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.