CLA-2-17:RR:NC:SP:232 I87369
Mr. William F. Beschle
Franklin Connections
1701 Northwestern Drive
El Paso, TX 79912
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a beverage mix from Mexico; Article 509
Dear Mr. Beschle:
In your letter dated October 18, 2002 you requested a ruling on the status of a beverage mix from Mexico under the NAFTA. Additional information was submitted in your fax dated November 13, 2002.
The subject merchandise is stated to contain 85.6 percent sugar, 5.7 percent fructose, 6.1 percent citric acid and small quantities ascorbic acid, sodium citrate, lemon # 49.167 SD, cloud #18.020 SD, FD&C yellow #5, sylox 15, and FD&C yellow #5 lake. The sugar is derived from cane or beet and will originate in Mexico or the United States. The balance of the ingredients is from the United States. The ingredients are blended into the beverage mix in Mexico. The product will be packaged in various small containers (cans, jars, pouches) for retail sale, and in larger bulk containers for the food service industry.
The applicable tariff provision for the beverage mix in bulk packaging for the food service industry will be 1701.91.4800, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for cane or beet sugar and chemically pure sucrose, in solid form...containing added flavoring matter whether or not containing added coloring... articles containing over 65 percent by dry weight of sugar described in additional U.S. note 2 to chapter 17...other. The general rate of duty will be 33.9 cents per kilogram plus 5.1 percent ad valorem.
The beverage mix, being wholly obtained or produced entirely in the territory of Mexico and the United States will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty if entered under the terms of general note 12 of the Harmonized Tariff Schedule of the United States, and imported in quantities that fall within the quantitative limits described in U.S. note 18 to subchapter 6 of chapter 99 HTS pursuant to subheading 9906.17.03. If the quantitative limits of U.S. note 18 to subchapter 6 of chapter 99 have been reached, and if the product is valued not over 31.5 cents per kilogram, it will be dutiable at the rate of 3.8 cents per kilogram in subheading 9906.17.04, HTS. If valued over 31.5 cents per kilogram, the rate of duty will be 12 percent ad valorem, pursuant to subheading 9906.17.05, HTS, upon compliance with all applicable laws, regulations, and agreements.
The applicable tariff provision for the beverage mix in retail packaging will be 1701.91.5800, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for cane or beet sugar and chemically pure sucrose, in solid form...containing added flavoring matter whether or not containing added coloring... articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17...other. The general rate of duty will be 33.9 cents per kilogram plus 5.1 percent ad valorem.
The beverage mix, being wholly obtained or produced entirely in the territory of the United States and Mexico will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty if entered under the terms of general note 12 of the Harmonized Tariff Schedule of the United States, and imported in quantities that fall within the quantitative limits described in U.S. note 20 to subchapter 6 of chapter 99 HTS pursuant to subheading 9906.17.39. If the quantitative limits of U.S. note 20 to subchapter 6 of chapter 99 have been reached, and if the product is valued not over 31.5 cents per kilogram, it will be dutiable at the rate of 3.8 cents per kilogram in subheading 9906.17.40, HTS. If valued over 31.5 cents per kilogram, the rate of duty will be 12 percent ad valorem, pursuant to subheading 9906.17.41, HTS, upon compliance with all applicable laws, regulations, and agreements.
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 John Maria at 646-733-3031.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division