CLA-2-21:RR:NC:FC:228 A80165
John B. Pellegrini
Ross & Hardies
65 East 55th Street
New York, New York 10022
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of beverage sweetener from Canada; Article 509
Dear Mr. Pellegrini:
In your letter dated February 2, 1996 on behalf of Joseph E. Seagram & Sons, Inc., you requested a ruling on the status of beverage sweetener from Canada under the NAFTA.
The product is a beverage sweetener consisting of water, alcohol, (11.5 percent by volume), and a sugar additive (one or more of invert sugar syrup, liquid sugar, liquid fructose, high fructose corn syrup, sugar water solution, or fructose water solution). The water and alcohol may be a product of the United States or Canada. The sugar additive may be either a product of the United States, Canada, or another, unspecified, country. The beverage sweetener will be used in the manufacture of distilled spirits, wine specialty products, malt specialty products and flavorings.
The applicable tariff provision for the beverage sweetener will be 2106.90.1200, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for compound alcoholic preparations of an alcoholic strength by volume exceeding 0.5 percent vol., of a kind used for the manufacture of beverages... containing not over 20 percent of alcohol by weight. The general rate of duty will be 5.8 cents per kilogram plus 2.6 percent ad valorem. The sweetener is also subject to a Federal Excise Tax of $13.50 per proof gallon and a proportionate tax at the like rate on all fractional parts of a proof gallon.
Each of the non-originating materials used to make the sweetener has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21. The beverage sweetener will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. The sweetener is also subject to a Federal Excise Tax of $13.50 per proof gallon and a proportionate tax at the like rate on all fractional parts of a proof gallon.
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Stanley Hopard at 212-466-5760.
Sincerely,
Roger J. Silvestri
Director
National Commodity
Specialist Division