Proposed Reclassification of Sheep's Milk Cheeses Harmful to Importers, Trade Group Says

A CBP proposal to revoke several rulings on sheep’s milk cheese hinges on a misinterpretation of the word “pecorino” as only referring to cheeses of Italian origin, the Cheese Importers Association of America said in comments to the agency dated Oct. 31. CBP’s proposed revocation of 11 ruling letters and modification of another five that currently classify sheep’s milk cheeses, including feta and manchego, in subheading 0406.90.57 for pecorino not suitable for grating would cause “a significant adverse impact for those who have invested in businesses importing the subject cheeses,” the CIAA said.

As detailed in the Sept. 26 CBP bulletin (see 1809280037), CBP is proposing to reclassify the cheeses in subheading 0406.90.59 for “other” sheep’s milk cheeses. Though “pecorino” is not defined in the tariff schedule, “we are of the view that pecorino is a hard cheese of Italian origin,” CBP had said in proposed ruling HQ H287482. But internationally and even at other U.S. agencies, pecorino is recognized as a generic term that does not specify Italian cheese, the CIAA said.

For example, in a 1980 report, the ITC defined pecorino as “not a specific type of sheep's milk cheese, but rather a term properly descriptive of any cheese made from sheep's milk,” and recognized pecorino production in other countries. The old U.S. Customs Court in 1953 similarly ruled that “'Pecorino' when used in connection with cheese means cheese made from sheep's milk and not a specific cheese,” the CIAA said. In the EU, pecorino is a generic term and may be used by any producer in any EU region, the trade group said. “There is, therefore, a substantial difference between the generic name pecorino and those EU Protected Designation of Origin (PDO) [names] such as “Pecorino Romano,” it said.

Even if CBP does reclassify the cheeses out of the provision for pecorino cheese, there are some cheeses in the rulings proposed for revocation that should not be put in the subheading proposed by CBP, the CIAA said. For example, forms of Manchego “are suitable for grating and should be reclassified as 0406.90.56” for sheep’s milk cheese in loaves and suitable for grating, it said. And in any case, “the ingredients used and production methods followed for Manchego are virtually the same as those followed for the production of generic Italian-sourced Pecorino cheese,” the CIAA said.

Reclassification of the cheeses in the new subheading for “other cheese,” which carries a 9.6% duty rate instead of the zero percent rate applicable to pecorino, would harm cheese producers that have “relied on CBP practices to develop their businesses,” the CIAA said. In 2016, 62 percent by value of the cheese imported as pecorino under subheading 0406.90.57 was of non-Italian origin, a proportion that rose to 83.7 percent in 2018, the CIAA said. “We disagree with the proposed revocations and modifications as being unjustified and economically harmful,” it said.