The Case of Strawberry Jelly Powder: A Practical Example
The product in question is a powder used to prepare a table jelly. All that is needed is to add boiling water to the powder to create the finished strawberry-flavored jelly, which is then packaged for retail sale. It seems simple, right?
However, what was considered a straightforward case by our Trade Compliance Team turned out to be a challenge for the entrepreneur. Due to a lack of knowledge and understanding of the tariff classification rules, the subcontractor questioned the tariff code assigned by our team, suggesting it should fall under heading 2007.
Why the Initial Classification Was Incorrect
You may be wondering, how could this happen? The Customs Tariff system is complex, with its own extensive structure and a highly specific language. Navigating through tariff intricacies is not always simple, and even experienced classifiers might suggest multiple codes for a product, although there is only one correct code.
In this case, focusing only on the heading or subheading title without considering the Section and Chapter Notes led to the misclassification.
Here’s where the confusion arose. “Jelly” appears by name in the tariff schedule in two places:
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1704 90 65: Gum confectionery and jelly confectionery, including fruit pastes in the form of sugar confectionery.
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2007: Jams, fruit jellies, marmalades, fruit and nut purees and pastes, obtained by cooking, whether or not containing added sugar or sweeteners.
However, neither of these classifications applied to the product in question.
Breaking Down the Classification Notes
According to the Notes for heading 1704, this category includes sugar preparations typically ready for immediate consumption without any further processing, such as adding boiling water. These products can be consumed immediately after unpacking.
On the other hand, heading 2007 refers to fruit jellies made by boiling fruit juices with sugar. When reviewing the Notes for 1704, you’ll find a redirection to heading 2007, but there is another redirection there. The Notes to 2007 specify that table jellies should fall under heading 2106, which is exactly where our team initially classified the product in question. This is because heading 2106 covers powders for table jellies.
The Confirmation of Correct Classification
It’s important to note that, after consulting with the customs authorities, the classification assigned by our Trade Compliance Team was confirmed as correct through the Binding Tariff Information (BTI) process.
Consulting Customs Support for Expert Classification Services
This case serves as a perfect example of why it’s critical to work with experienced professionals when it comes to tariff classification. The complexity of the Customs Tariff system and the detailed language used can easily lead to confusion. By consulting experts, businesses can avoid errors that could have financial or operational consequences.
If you’re unsure about tariff classifications or need assistance with navigating complex product codes, the Trade Compliance Team at Customs Support Group is always ready to help. We offer expert services in tariff classification, ensuring your goods are classified correctly and in line with the latest regulations.
Don’t let tariff classification complexities slow your business down! Get in touch with our experts today and ensure your products cross borders seamlessly.
