HQ 951130
June 9,1992
CLA-2 CO:R:C:F 951130 JGH
Mr. Gregory Kozak
Canadian Blending & Processing, Inc.
P.O.Box 7279
Windsor, Ontario N9C 4E9
Canada
RE: Classification of Total Invert Syrup
Dear Mr. Kozak
Your letter of January 24, 1992, concerns the tariff status
of total invert syrup made in Canada from raw sugar from
Australia.
FACTS:
Raw sugar from Australia is refined in Canada. After
refining, the sugar is dissolved in water, heated and hydrolyzed.
The hydrolysis process involves the addition of concentrated
hydrochloric acid, heating and agitation. The reaction is halted
with the addition of sodium hydroxide and/or sodium carbonate.
The result is that the 12 carbon sucrose in the sugar is reduced
to 6 carbon fructose and 6 carbon dextrose, with small amount of
sucrose remaining. The component percentages of the invert syrup
is given as 47.5 percent fructose, 47.5 percent dextrose, and a
maximum of 5 percent sucrose.
ISSUE:
Whether there has been a substantial transformation into
new and different sugars for quota, country of origin and
Canadian Free Trade purposes.
LAW AND ANALYSIS:
From the refined sugar, an invert syrup of two different
types of sugar are made: fructose and dextrose. These sugars are
not only different from sucrose, but have different uses as well.
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Thus, they are considered new and different products. The raw
cane sugar from Austalia is classifiable as sugar in subheadings
1701.11.01 or 1701.11.03, HTSUS, and even though refined in
Canada, it remains sugar, and, therefore, a product of Australia.
The invert syrup, on the other hand, becomes a product of Canada,
classifiable in subheadings 1702.90.31 or 1702.90.32, HTSUS,
depending on the quota status of the syrup.
As to the standing of the invert syrup under the United
States-Canada Free Trade Agreement Act (FTA), General Note
3(c)(vii)(R)(4) requires that for the FTA to apply there must be
a change to heading 1704. In this case the only change was from
heading 1701 to heading 1702, so that the invert syrup would not
be considered a product of Canada for the purposes of FTA.
HOLDING:
Raw sugar from Australia refined in Canada remains, for
tariff purposes, a product of Australia.
The same refined sugar coverted into invert syrup in Canada
is a product of Canada in subheading 1702.90.31 or 1702.90.32,
HTSUS, for quota, classification and marking purposes, but not
for the FTA.
Sincerely,
John Durant, Director
Commercial Rulings Division