CLA-2-21:S:N:N7:228 806362
Ms. Vivian Villa
Villa's Authentic Sauces, Inc.
480 Bloor Street W.
Toronto, Ontario M5S 1X8 Canada
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of pesto sauces from
Canada; Article 509
Dear Ms. Villa:
In your letter dated January 25, 1995 you requested a ruling
on the status of pesto sauces from Canada under the NAFTA.
Samples of two products, submitted with earlier
correspondence, were examined and disposed of. "Villa's Pesto
Sauce" is a thick, green, creamy food product with scattered
small pieces of basil leaf and pine nuts, said to be composed of
48 percent parmesan cheese, 19 percent butter, 17 percent garlic,
7 percent fresh basil, 4 percent romano cheese, 3 percent pine
nuts, and 2 percent olive oil. "Villa's Pesto with Sundried
Tomato" is a red/brown product of similar consistency, made from
24 percent sun-dried tomatoes, 24 percent parmesan cheese, 19
percent butter, 17 percent fresh garlic, 7 percent fresh basil, 4
percent romano cheese, 3 percent pine nuts, and 2 percent olive
oil. The primary use for these products is as a sauce for pasta,
after the addition of a small quantity of hot water.
With three exceptions, all of the ingredients are said to be
products of Canada, Mexico, or the United States. The
ingredients from non-NAFTA countries are the pine nuts (product
of China), the basil (France), and the olive oil (Italy). The
production process involves blending all ingredients in a high-
powered industrial mixer, dispensing into 125-milliliter plastic
tubs, packing, and freezing.
The applicable tariff provision for the pesto sauces will be
2103.90.9060, Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), which provides for sauces and preparations
therefor...other...other...other. The general rate of duty will
be 7.3 percent ad valorem.
Each of the non-originating materials used to make the pesto
sauces has satisfied the changes in tariff classification
required under HTSUSA General Note 12(t)/21. The pesto sauces
will be entitled to a 2.2 percent ad valorem rate of duty under
the NAFTA upon compliance with all applicable laws, regulations,
and agreements.
The marking statute, section 304, Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides that, unless excepted, every
article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly
and permanently as the nature of the article (or its container)
will permit, in such a manner as to indicate the ultimate
purchaser in the U.S. the English name of the country of origin
of the article. Part 134, Customs Regulations (19 CFR Part 134)
implements the country of origin marking requirements and
exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a "good of a
NAFTA country" are also determined in accordance with Annex 311
of the North American Free Trade Agreement ("NAFTA"), as
implemented by section 207 of the North American Free Trade
Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057)
(December 8, 1993) and the interim amendments to the Customs
Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3,
1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and
T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim
amendments took effect on January 1, 1994 to coincide with the
effective date of the NAFTA. The Marking Rules used for
determining whether a good is a good of a NAFTA country are
contained in T.D. 94-4 (adding a new Part 102, Customs
Regulations). The marking requirements of these goods are set
forth in T.D. 94-1 (interim amendments to various provisions of
Part 134, Customs Regulations).
The samples you have submitted do not appear to be properly
marked with the country of origin. You may wish to discuss the
matter of country of origin marking with the Customs import
specialist at the proposed port of entry.
The importation of this merchandise may be subject to
restrictions imposed by the United States Department of
Agriculture and/or Food and Drug Administration. It is suggested
you contact these agencies directly for further information.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
This ruling letter is binding only as to the party to whom
it is issued and may be relied on only by that party.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport