CBP Finds Post-Fermentation Flavoring Excludes Imports from Beer Classification
The addition of flavoring to alcoholic beverages following fermentation excludes them from a beer classification under heading 2203, said CBP in a recent internal advice ruling. The importer, Carriage House Imports, sought CBP input on the tariff classification on four types of Italian-made "spumante" malt beverages. CBP highlighted the ruling on its website, something it typically does for issues that come up frequently among importers. The internal advice ruling, HQ H209838, is (here).
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Carriage House Imports said the malt beverages -- "Green Apple Sparkletini Italian Spumante", "Raspberry Sparkletini Italian Spumante"; "Peach Sparkletini Italian Spumante" and "Verdi Spumante" -- should be classified under heading 2203 due to their "beer base." The drinks are produced from a mash of malted barley and therefore meet the definition of "beer." Carriage House relied on the definition of "beer" from the Alcohol and Tobacco Tax and Trade Bureau of the Treasury Department that says beer is a beverage "brewed from malt." But that definition "pertains only to the collection of excise taxes" and not for classification of imports, said CBP.
While the explanatory notices of heading 2203 allow for the addition of flavoring and other substances during fermentation, the addition of flavoring after the fermentation process, pushes a beverage outside of head 2203, said CBP. Carriage House also argued that the malt beverages are intended to compete in the beer market. That's true of "many beverage products, both alcoholic and non-alcoholic," many of which don't fall under heading 2203, said CBP. "In addition, the products were not marketed and sold as beer as claimed by the importer, but rather as sparkling wine," said CBP in its summary of the ruling.
CBP finds the four malt beverages to be classified under subheading 2206.00.90, which provides for “[o]ther fermented beverages…: Other: Other….” The general, column one rate of duty is 4.2¢ per liter, said CBP.