CLA-2-21:RR:NC:SP:232 E82184
Mr. John B. Pellegrini
Ross & Hardies
Park Avenue Tower
65 East 55th Street
New York, New York 10022-3219
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Iced Tea Mixes from Mexico; Article 509
Dear Mr. Pellegrini:
In your letter dated May 12, 1999, on behalf of 4C Foods Corp., you requested a ruling on the status of iced tea mixes from Mexico under the NAFTA. Your request also asks for the country of origin for marking purposes and the quota status of the products.
Information was submitted with your initial request dated March 10, 1999. The subject merchandise is described as an iced tea mix consisting of sugar, instant tea, citric acid, lemon flavoring and coloring. The sugar in Mix A will be produced in Mexico, and the sugar in Mix B will be from a non-NAFTA country. The instant tea in both mixes will be produced in Canada. It is understood that the instant tea is produced in Canada from tea from a non-NAFTA country. The balance of the ingredients in both mixes will be produced in the United States. The iced tea mixes will be blended in Mexico. They will be imported in 2,400 pound bags to be packaged in the United States into retail packaging of 24 to 96 ounces. The ultimate consumer adds water to the mixes to produce a finished beverage.
The applicable subheading for the iced tea mixes, if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 2101.20.5400 Harmonized Tariff Schedules of the United States (HTS), which provides for extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or mate...other...other ...articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17...described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 2101.20.5800, HTS, and dutiable at the rate of 31.4 cents per kilogram plus 8.8 percent ad valorem.
The Iced Tea Mix A, being made entirely in the territory of Mexico using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
The non-originating material used to make the Iced Tea Mix B has satisfied the change in tariff classification required under HTSUSA General Note 12(t)/21. The Iced Tea Mix B will be entitled to a free 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 imported articles which are processed in a NAFTA country prior to being imported into the U.S. A marked sample was not 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 C.F.R. 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.
The imported iced tea mixes are processed in a NAFTA country "Mexico" prior to being imported into the U.S. Since, "Mexico" is defined under 19 C.F.R. §134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported iced tea mixes are goods of a NAFTA country, and thus subject to the NAFTA marking requirements.
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 iced tea mixes are goods of "Canada" for marking purposes, since they satisfy the requirements of Section 102.11(b)(1).
Since the iced tea mixes are products of Canada, they fall within the quota limits described in additional U.S. Note 8 to chapter 17 of the HTS. It is noted that Canada has a separate allotment under this quota.
On October 11, 1996, the President signed the Miscellaneous Trade and Technical Corrections Act of 1996. Section 14 of the Act amended the country of origin marking statute (19 U.S.C. §1304) to exempt imports of certain specified coffee, tea and spices from the marking requirements of 19 U.S.C. §1304 (a) and (b). As a result neither the imported products nor their containers are required to be marked with the foreign country of origin. This statutory exemption is effective for goods entered, or withdrawn from warehouse, for consumption on or after October 11, 1996. The iced tea mixes classified under subheadings 2101.20.5400 and 2101.20.5800, HTS, are among the products which have been included in this statutory marking exemption. Therefore, neither the iced tea mixes nor their containers are required to be marked with the foreign country of origin.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 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 212-637-7059.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division