NCS/ARS/CL/10431

You have requested for a binding tariff classification of a product called ‘Flavor Klei’, which will be imported in bulk quantity for the manufacture of an alcoholic beverage called Desperados.

PRODUCT ANALYSIS

According to your supporting documents, ‘Flavor Klei is a flavouring preparation specifically designed for industrial use in the manufacture of food and beverages.  It is supplied in bulk as an industrial raw material to beverage manufacturers, is applied at the low dosage levels typical of flavouring preparations and requires mixing before use. The product, therefore, is not intended for direct consumption and must be diluted and incorporated into a finished food or beverage product before consumption. The function of Flavor Klei is to impact a distinctive aroma and taste profile to the finished beverage. Consistent with its purpose as a flavouring preparation, it is used in very low concentrations during the manufacturing process. Our recommended dosage rate is between 1 and 2 grams per litre of finished beverage, demonstrating that the Product is used solely as a flavouring ingredient rather than as a beverage or beverage base’.

Composition:

Flavor Klei is composed essentially of the following substances:

The supplier's technical specification indicates that Flavour Klei is a liquid, light yellow, tequila base with citrus (lemon, orange, grapefruit) and spice aromatics; 51.1 % vol ± 2 at 20 °C; density 0.928 ± 0.05 g/cm³; apparent Brix 17.5; flash point 23.5 °C. 

1.  Classification

The goods are classified in subheading 3302.10 — “Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw materials in industry; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages — Of a kind used in the food or drink industries.”

2.  Basis of classification

Classification is determined under GIR 1 by the terms of heading 33.02 and under GIR 6 at subheading level. Heading 33.02 expressly covers alcoholic solutions with a basis of odoriferous substances, and preparations based on odoriferous substances of a kind used for the manufacture of beverages. Chapter 33 Note 2 confines “odoriferous substances” to the substances of heading 33.01, to odoriferous constituents isolated from them, and to synthetic aromatics. Furthermore, the ENs to heading 3302 states inter alia that, ‘The heading also includes other preparations based on odoriferous substances, of a kind used for the manufacture of beverages. These preparations may be either alcoholic or non-alcoholic and may be used to produce either alcoholic or non-alcoholic beverages. They must have a basis of one or more odoriferous substances, as described in Note 2 to this Chapter, which are used primarily to impart a fragrance and secondarily to give a flavour to beverages.  Such preparations generally contain a relatively small quantity of odoriferous substances which characterize a particular beverage … as presented, these preparations are not intended for consumption as beverages and thus can be distinguished from the beverages of Chapter 22.’

The above conditions are s satisfied. The supplier declares the product to be a preparation based on odoriferous substances derived from natural flavouring materials, including citrus flavour constituents that will be used for the manufacture of Desperado, an alcoholic beverage. The specification further declares safrole at 200.71 µg/L and methyl eugenol at 110.39 µg/L — constituents of essential oils and botanical aromatic materials, quantified under Regulation (EC) No 1334/2008 because such materials are present in the preparation. Subheading 3302.10 then applies, the preparation being of a kind used in the food or drink industries. Although heading 2106.90 (covers compound alcoholic preparations of a kind used for the manufacture of beverages other than those based on odoriferous substances) may be considered, the product is not a non-odoriferous flavouring product or concentrate. 

Accordingly, based on the information provided in the suppliers Technical Data Sheet as well as the legal scope of heading 3302 and its Explanatory Notes,  ‘Flavour Klei’ is effectively classified in tariff heading 3302.10.00.00, “Mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw materials in industry; other preparations based on odoriferous substances, of a kind used for the manufacture of beverages — Of a kind used in the food or drink industries.” at 10% rate of duty and 7.5% VAT in line with the provisions of the ECOWAS CET 2022 - 2027.

LEGAL FRAMEWORK & JUSTIFICATION 

GIRs 1 & 6