CLA-2-21:RR:NC:2:228 C81088
Robert M. Black
Favorite Brands International
75 Tri State International, Suite 222
Lincolnshire, IL 60069
RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), and country of origin marking of a sugar/gelatin blend from Canada and confections made in the United States; Article 509
Dear Mr. Black:
In your letter dated October 22, 1997, you requested a ruling on the status of a sugar/gelatin blend from Canada under the NAFTA.
A sample and an ingredients breakdown were submitted with your letter. The sample was examined and disposed of. The product is a dry blend composed of 77 percent sugar and 23 percent gelatin. The sugar, which may be a product of Canada or an unidentified non-NAFTA country, and the gelatin, produced in the United States, are blended in Canada. After importation, the blend will be used as the major ingredient in the manufacture of gummie products.
The applicable tariff provision for the sugar/gelatin blend will be 2106.90.5870, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for food preparations not elsewhere specified or included...other...of gelatin...other ...containing sugar derived from sugar cane or sugar beets. The general rate of duty will be 5.4 percent ad valorem.
The sugar/gelatin blend, produced with gelatin from the United States and sugar from Canada, 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 0.6 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
When the blend is produced with gelatin from the United States and sugar from a non-Nafta country, the non-originating materials used to make the sugar/gelatin blend has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)21/14. The product will be entitled to a 0.6 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 appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the 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 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 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 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.
Part 102 of the 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 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 regulations to the facts of this case, we find that the imported sugar/gelatin blend is a good of Canada for marking purposes.
A similar analysis will be applied for determining the country of origin of the gummie candies produced in the United States from the imported sugar/gelatin blend. Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the United States-made gummie confections are goods of the United States for marking purposes.
In general, articles of United States origin are not subject to the requirements of 19 U.S.C. 1304. The Federal Trade Commission (FTC) has jurisdiction concerning the marking of American made articles. Any inquiries on that subject should be directed to the FTC. The address is Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508.
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.
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,
Robert B. Swierupski
Director,
National Commodity
Specialist Division