CLA-2-17:OT:RR:NC:232
Mr. Enrique Such
Mondelez International
Montehiedra Office Center
9615 Los Romeros Avenue, Suite 801
San Juan, PR 00926-7059
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of a Powdered Drink Mix from Costa Rica
Dear Mr. Such:
In your letter dated March 12, 2014, you requested a tariff classification ruling. Ingredient breakdowns were submitted along with your request.
The merchandise in question is a powdered drink mix sold under the brand name, Tang. The powdered drink mix is a product of Costa Rica and it will be imported into the United States for retail sale in the following flavors: Passion Fruit, Orange, Grape, Strawberry, Lemon Iced Tea, and Lemon. The ultimate consumer will create the finished beverage by simply adding water.
Passion Fruit Flavor, Orange Flavor, Grape Flavor, Strawberry Flavor, Lemon Iced Tea Flavor and Lemon Flavor are said to contain the following ingredients (from their respective countries of origin): Sucrose (Costa Rica); Artificial Sweeteners (aspartame-acesulfame) (China); Citric Acid (China, Colombia); Malic Acid (United States); Tricalcium Phosphate (Mexico); Gums-Hydrocolloids (United States, China); Phosphates (Mexico); Stabilizers (Colombia); Flavorings (Mexico, Colombia, United States); Colorings (Colombia, Mexico) and Ascorbic Acid (vitamin C) (China).
In your letter, you suggest a tariff classification of 2106.90.9972, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included. We disagree. Based on the ingredient composition, they will be classified elsewhere.
The applicable subheading for the Powdered Drink Mix/Tang: Passion Fruit, Orange, Grape, Strawberry, Lemon Iced Tea, and Lemon flavors if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 1701.91.5400 Harmonized Tariff Schedules of the United States (HTSUS), which provides for cane or beet sugar and chemically pure sucrose in solid form: other...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...described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The rate of duty will be 6 percent ad valorem. If the quantitative limits of additional US note 8 to chapter 17 have been reached, the product will be classified in subheading 1701.91.5800, HTSUS, and dutiable at the rate of 33.9 cents per kilogram plus 5.1 percent ad valorem. In addition, products classified in subheading 1701.91.5800, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.17.49 to 9904.17.65, HTSUS.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note; and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
Based on the facts provided, all of the flavors of the powdered drink mix/Tang, when produced in Costa Rica using the ingredients mentioned above from their respective countries of origin, will qualify for DR-CAFTA preferential treatment because they will meet the requirement of HTSUS General Note 29(b)(ii)(A) and 29(n)/17.1. The goods will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Frank Troise at (646) 733-3031 or by email address: [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division