Tariff classification of wafers depends on cocoa content: cocoa butter alone does not make a product chocolate-coated.

Tariff classification of the product "Milk Treat" turned on whether its coating amounted to chocolate or cocoa-containing material. The relevant heading distinguished between wafers coated with or containing chocolate and other wafers, and the explanatory notes made clear that cocoa butter is not equivalent to cocoa. Because the product contained cocoa butter but no cocoa or chocolate, it could not be treated as a chocolate-coated or cocoa-containing wafer. The product was therefore correctly classifiable under Tariff Heading 1905.32.19, and the contrary differential duty demand was not sustained.

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Issues: Whether the product "Milk Treat" was classifiable under Tariff Heading 1905.32.11 as wafers coated with or containing chocolate, or under Tariff Heading 1905.32.19 as other wafers.

Analysis: The classification turned on the character of the coating used in the product. The relevant tariff structure distinguished between wafers coated with chocolate or containing chocolate and other wafers. The explanatory notes to Chapter 18 showed that preparations containing cocoa fall within that chapter, while Chapter 17 covers sugar confectionery including white chocolate not containing cocoa. The notes further stated that cocoa butter is not to be regarded as cocoa. On that basis, the product ingredients, which contained cocoa butter but no cocoa or chocolate, could not be treated as chocolate-coated or cocoa-containing goods for the purpose of the disputed heading.

Conclusion: The product was not classifiable under Tariff Heading 1905.32.11 and was correctly classifiable under Tariff Heading 1905.32.19.

Final Conclusion: The classification adopted by the assessee was upheld and the differential duty demand based on the contrary classification was not sustained.

Ratio Decidendi: For tariff classification, cocoa butter is not equivalent to cocoa, and where the product contains only cocoa butter without cocoa or chocolate, it cannot be classified as a chocolate-coated or cocoa-containing wafer under the relevant heading.

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