CLA-2-20:RR:NC:FC:232 A83900
Ms. Pamela Morris
PBB USA Inc.
434 Delaware Ave.
Buffalo, NY 14202
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of California Connoisseur Wine Kit from Canada; Article 509
Dear Ms. Morris:
In your letter dated May 15, 1996, on behalf of Niagara Vine Products in Ontario, Canada, you requested a ruling on the status of a California Connoisseur Wine Kit from Canada under the NAFTA. Your request also asks for the country of origin for marking purposes of the product.
A sample of a wine kit and a beer kit were submitted with your request. This ruling only concerns the wine kit. Information was submitted with your initial request dated April 9, 1996. The samples are being returned to you as requested. The subject merchandise consists of a rectangular cardboard box approximately 12 inches high, 6 inches wide and 6 inches deep. The top of each side of the box is labelled "California Connoisseur Wine Kit" in large gold and white lettering, and the bottoms of two sides of the box are marked "Vineco Distributing Ltd., St. Catharines, Ontario, Canada L2R 6W8" in a small gold lettering. The lower right hand corner of the two sides of the box without the country marking have labels stating "California Riesling" in white lettering on a green background. Inside the cardboard box is a plastic bag with a spigot. The spigot fits through a specially designed hole in the box. The plastic bag contains 58 percent grape juice concentrate (68 Brix) and 41 percent liquid invert sugar produced in the United States, and 1 percent tartaric, malic, citric acids and wine tannin produced in Canada. The cardboard box also contains a separate additive package with bentonite, potassium, metabisulphate, potassium sorbate, yeast and liquid isinglass, which are all produced in Canada. The United States produced grape juice concentrate and liquid invert sugar are sent to Canada where they are combined and processed. The acids are added to replace those lost in the production of the grape juice concentrate. The plastic bags are filled and assembled into the wine boxes with the separate additive package.
The applicable tariff provision for the California Connoisseur Wine Kit will be 2009.60.0060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Fruit juices (including grape must)...not fortified with vitamins or minerals, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter...grape juice...concentrated...other. The general rate of duty will be 5.9 cents per liter.
The California Connoisseur Wine Kit, being wholly obtained or produced entirely in the territory of the United States and Canada, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a 1.3 cents per liter rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
Your inquiry also requests a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. A marked sample was submitted with your letter for review.
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).
Section 134.1(b) of the interim regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).
Section 134.1(j) of the interim regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the interim regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the interim regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.
You state that the imported California Connoisseur Wine Kits are processed in a NAFTA country "Canada" prior to being imported into the U.S. Since, "Canada" is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported wine kit is a good of a NAFTA country", and thus subject to the NAFTA marking requirements.
Part 102 of the interim regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the interim regulations, sets forth the required hierarchy for determining country of origin for marking purposes.
Applying the NAFTA Marking Rules set forth in Part 102 of the interim regulations to the facts of this case, we find that the imported wine kit is a good of a Canada for marking purposes, since it satisfies the requirements of Section 102.11(b)(1).
Section 134.46, Customs Regulations (19 CFR 134.46), requires that in any case in which the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or
produced, appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," Product of," or other words of similar meaning.
In order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality other than the actual country of origin appears.
The proposed marking of imported California Connoisseur Wine Kits, as described above, does not satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is not an acceptable country of origin marking for the imported wine kits. The wine kit must be marked to show "Product of Canada" or "Made in Canada" in close proximity and in comparable size lettering to "California" at the top of each side of the box.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).
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 John Maria at 212-466-5730.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.
Sincerely,
Roger J. Silvestri
Director,
National Commodity
Specialist Division