Flavoured milk classification: product retains its character as milk and falls under the milk tariff heading, not beverage heading.

Flavoured milk remains classifiable as milk under tariff heading 0402 99 90 where milk is the predominant and essential constituent and only minor additions of sugar, flavour or colour are present. The ruling applies Chapter 4, Chapter 22, the General Rules for Interpretation and relevant chapter notes to hold that flavoured milk retains its character as milk, including for food-standard classification purposes. The alternative heading for beverages containing milk under 2202 99 30 does not apply because the product is not a water-based beverage and its essential character is still that of milk.

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Issues: Whether flavoured milk is classifiable under tariff heading 0402 99 90 as milk, or under tariff heading 2202 99 30 as beverages containing milk.

Analysis: The product was examined with reference to the tariff structure of Chapter 4 and Chapter 22, the General Rules for Interpretation, and the relevant chapter notes. Chapter 4 covers milk and milk products, including milk and cream containing added sugar or other sweetening matter, while Chapter 22 is directed to water-based and other non-alcoholic beverages. The product composition showed milk as the predominant constituent, with only small additions of sugar, flavour and colour. The description of milk under the applicable food standards also included flavoured milk, indicating that flavoured milk retains its character as milk. The alternative entry for beverages containing milk was found inapplicable because the product was not a water-based beverage and its essential character remained that of milk. Reliance was also placed on the accepted understanding that flavouring or sweetening does not alter the basic character of milk.

Conclusion: Flavoured milk is classifiable under tariff heading 0402 99 90 and not under tariff heading 2202 99 30.

Final Conclusion: The ruling accepts the applicant's classification and confirms that flavoured milk continues to be treated as milk for tariff purposes.

Ratio Decidendi: Where milk remains the predominant and essential constituent of a prepared product, minor additions of sugar, flavour or colour do not shift its classification from the milk heading to the beverages heading.

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