Re: Bars, nutritional or snack, granola, cereal, grain or protein, with or without fruit, nuts or other ingredients

Transcription

1 Re: Bars, nutritional or snack, granola, cereal, grain or protein, with or without fruit, nuts or other ingredients Staff Contact: Allison L. Austin Telephone (703) Proponent: Commodity Classification Standards Board Present Classification Provisions Bars, granola cereal, other than popped or puffed cereal, with or without other ingredients, in inner containers in boxes or Package Food, prepared, NOI, in boxes, drums or Package 223. See item for class dependent upon agreed or released value Snack Foods, flavored or not flavored, viz.: Snack Foods, NOI; [Other Articles Listed Not Involved.] In boxes, drums or Packages 1000, 2387 or 2416, subject to Items 170 and 171 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 1 but less than Sub 3 2 but less than Sub 4 4 but less than Sub 5 6 but less than Sub 6 8 but less than Sub 7 10 but less than Sub 8 12 but less than Sub 9 15 or greater NOTE Not Involved. Proposed Classification Provisions Bars, nutritional or snack, NOI, granola, cereal, grain or protein, with or without fruit, nuts or other ingredients, in boxes or Package 128, subject to Item 170 and having a density in pounds per cubic foot of: Sub 1 Less than Sub 2 15 or greater Food, prepared, NOI, etc.... No Change 2013 National Motor Freight Traffic Association, Inc. Subject 5, Page 1 of 5

2 Proposed Classification Provisions Concluded Snack Foods, flavored or not flavored, viz.: Snack Foods, NOI; [Other Articles Listed No Change.] In boxes, drums or Packages 1000, 2387 or 2416, subject to Items 170 and 171 and having a density in pounds per cubic foot of: Subs 1-9 No Change NOTE No Change. Analysis Research Project 1161 This proposal is based on information developed through Research Project 1161, which was initiated by the CCSB in April 2012 in response to numerous interpretation questions regarding the applicable provisions for products described as nutritional or snack bars. Currently, granola bars are classified under the provisions of item 72045, naming granola cereal bars. Other types of nutritional or snack bars are not specifically named in the NMFC. CCSB opinions have generally classified these nutritional or snack bars under the provisions of item 73200, naming prepared food, NOI. However, recently, those marketed as snack bars have been classified under the provisions of item 74800, naming snack foods, NOI. During the course of research, 154 potential shippers or manufacturers and three associations believed to represent those companies, were sent commodity questionnaires in July, and for those that did not respond, again in September of Five questionnaires were returned as undeliverable, one company responded that they do not ship or manufacture these articles, two indicated that they do not ship via less-than-truckload (LTL) motor carrier service, and five companies provided at least some information; however, not all the information was usable. No responses were received from the associations contacted. Additional information was obtained through CCSB dock surveys, carrier-submitted Shipment Information Forms and the CCSB Density Study 1. History of Provisions The provisions of item for granola cereal bars were established as a result of action taken on Docket 772, Subject 52 (March 1977). Information on that record indicated an average density of pcf. There was no evidence of handling, stowability or liability 1 The Density Study is part of an ongoing effort by the CCSB to collect information on actual shipments; it is not tied to any particular research project, nor does it target any particular product category. Carriers that choose to participate in the study periodically submit shipment data captured through their respective freight auditing programs. The data is identified by NMFC item, and only verifiable data points, which include the weight and the dimensions and/or cube of the shipping unit involved, are used. Subject 5, Page 2 of National Motor Freight Traffic Association, Inc.

3 problems, with an average value of $1.23 per pound (in 1977 dollars). As a result of competition (a factor that is no longer properly considered in the classification of motor freight) between the granola bar and candy bar industries, the proposal was approved as modified at the current class 65. The provisions first appeared in Supplement 1 to NMF 100-E, effective May 5, 1978, and have remained substantially unchanged to the present. About Nutritional or Snack Bars This proposal encompasses a variety of products identified as nutritional or snack bars. In the marketplace, these products are generally subcategorized by composition of ingredients or by intended benefit. For example, nutritional or snack bars may be marketed as granola, fruit and nut, or cereal bars, or as protein, energy or meal replacement bars. In many instances these descriptors overlap. As shown in the examples below, while the ingredient makeup and market descriptions vary, generally all nutritional or snack bars are comparable in size and shape. Transportation Characteristics Density Information of record for nutritional or snack bars includes 3,450 density observations. The products range in density from 2.47 to pcf, with a simple average density of pcf. As shown in the frequency distribution on the following page, the densities are distributed throughout the range. However, the data can be divided into two density groupings of less than 15 pcf, and 15 pcf or greater National Motor Freight Traffic Association, Inc. Subject 5, Page 3 of 5

4 Frequency Distribution 35% 32.75% % of Figures in Interval 30% 25% 20% 15% 10% 5% 0% 0.00% 0.00% 0.14% 0.70% 4.96% 14.03% 13.07% 22.23% 10.81% 1.30% Density Intervals (pcf) When the data for nutritional or snack bars is evaluated on the basis of a density break at 15 pcf, the following ranges and averages are calculated. Density Group (pcf) Density Range (pcf) Average Density (pcf) Less than or greater Handling Nutritional or snack bars are typically tendered in fiberboard boxes on lift truck skids or pallets, as shown in the example on the right. They may also be shipped in boxes in fiberboard trays unitized on lift truck skids or pallets. No unusual or significant negative handling considerations have been reported. Stowability As with other food, care must be taken to avoid stowing the involved commodities with hazardous materials or other freight that may pose a contamination risk. At times, some nutritional or snack bars may require temperature control, including refrigeration, during transit. Many LTL carriers either have limited or no access to such specialized equipment. Liability Nutritional or snack bars are not likely to damage other freight, but may be damaged by freight with which stowed or by the elements. As with other perishable foodstuffs, these products require extra care to avoid contamination. Carriers report claims ratios ranging from 0.30% to 1.59% for nutritional or snack bars. Responding shippers indicate minimal to no Subject 5, Page 4 of National Motor Freight Traffic Association, Inc.

5 claims on these commodities. Limited value information reveals a range from $3.86 to $10.00 per pound, with a simple average value of $5.09 per pound. Relationship to CCSB Policies and Guidelines CCSB policy calls for amending provisions that are a source, or potential source, of interpretation disputes so as to eliminate or avoid those disputes. While the Classification provides specific provisions for granola cereal bars in item 72045, other types of nutritional or snack bars are not specifically named. This has led to numerous inquiries regarding the applicable provisions for these products. Typically, CCSB opinions have held the provisions of item 73200, for prepared food, NOI, applicable. However, recent interpretations have held item 74800, naming snack foods, NOI, applicable for products marketed as snack bars. In the interest of clarification, simplification and uniformity, under this proposal, the description of item would be amended to encompass various types of nutritional or snack bars within a single item. CCSB policy also calls for provisions to reflect a commodity s known transportation characteristics. Information of record for nutritional or snack bars shows a range in density from 2.47 to pcf, with an average density of pcf. Per CCSB density guidelines, an average density of pcf is generally associated with a class 70, which calls for a minimum average density of 15 pcf. However, CCSB policies further state that when commodities exhibit a wide density range, density-based classes may be established. As shown in the table below, the data can be divided into two density groupings of less than 15 pcf, and 15 pcf or greater, with classes reflective of the average density of each respective grouping. Density Group (pcf) Average Density (pcf) Guideline Class Density Guideline (pcf) Less than or greater While there are some stowability and liability concerns inherent when shipping perishable foodstuffs, they do not appear to significantly impact the transportability of these products. As such, it would be within CCSB policy and precedent to amend item to provide classes predicated on density, with a single density break at 15 pcf 2. A similar approach was taken on Docket , Subject 11 (June 2009), involving engine radiator, fuel tank or oil filler caps, as named in item No significant negative handling, stowability or liability concerns were reported, and, as such, density was determined to be the primary transportation characteristic. While the densities were distributed throughout the range of 2.96 to pcf, a single density break at 15 pcf was proposed to provide a more accurate reflection of the identified range in density. That proposal was approved as docketed, and the provisions first appeared in Supplement 3 to NMF 100-AI, effective August 22, Based on the information of record, this proposal, as docketed, is in keeping with CCSB policy and precedent. 2 The density provisions would include reference to Item (Rule) 170, the inadvertence clause National Motor Freight Traffic Association, Inc. Subject 5, Page 5 of 5