CLA-2-7:S:N:N7:228 807206
Ms. Nancy Tsang
East Trade Enterprise
P.O. Box 212
Oakland, CA 94604
RE: The tariff classification and country of origin marking
under the North American Free Trade Agreement (NAFTA), of
garlic segments from Canada; Article 509.
Dear Ms. Tsang:
In your letters dated December 16, 1994, January 19, 1995,
and February 8, 1995 you requested a ruling on the status of
garlic segments from Canada under the NAFTA.
The imported merchandise is described as refrigerated,
peeled garlic segments, packed in plastic bags or jars containing
5 pounds, net weight. The product is prepared from whole garlic
bulbs, imported into Canada from Argentina, Chile, China, Mexico,
Taiwan, and Vietnam. In Canada, the garlic is sorted, peeled,
separated into segments, subjected to a "treatment" with unknown
quantities of nitrogen or carbon dioxide, packed and
refrigerated.
The applicable tariff provision for the imported garlic
segments will be 0703.20.0000, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), which provides for garlic...and
other alliaceous vegetables, fresh or chilled...garlic. The
general rate of duty, for the segments made from Argentine,
Chilean, Chinese, Mexican, and Taiwanese garlic, will be 1.49
cents per kilogram. For the segments made from Vietnamese
garlic, the rate of duty will be 3.3 cents per kilogram.
The segments made from garlic grown in Mexico, being wholly
obtained or produced entirely in the territory of Mexico and
Canada, will meet the requirements of HTSUSA General Note
12(b)(i), and will therefore be entitled to a free rate of duty
under the NAFTA upon compliance with all applicable laws,
regulations, and agreements.
The segments produced from garlic bulbs grown in Argentina,
Chile, China, Taiwan, and Vietnam do not qualify for preferential
treatment under the NAFTA because the non-originating materials
used in the production of the goods will not undergo the change
in tariff classification required by General Note 12(t)/7,
HTSUSA.
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 interim amendments to the Customs
Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3,
1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and
T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim
amendments took effect on January 1, 1994 to coincide with the
effective date of the NAFTA. The Marking Rules used for
determining whether a good is a good of a NAFTA country are
contained in T.D. 94-4 (adding a new Part 102, Customs
Regulations). The marking requirements of these goods are set
forth in T.D. 94-1 (interim amendments to various provisions of
Part 134, Customs Regulations).
Section 134.1(b) of the interim 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 interim 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 interim 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 interim 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.
You state that the imported garlic segments are processed in
a NAFTA country, Canada, prior to being imported into the U.S.
Since Canada is defined under 19 CFR 134.1(g), as a NAFTA
country, we must first apply the NAFTA Marking Rules in order to
determine whether the imported garlic segments are goods of a
NAFTA country, and thus subject to the NAFTA marking
requirements.
Part 102 of the interim 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 interim 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 interim regulations to the facts of this case, we find that,
for marking purposes, the imported garlic segments are goods of
Argentina, Chile, China, Mexico, Taiwan, or Vietnam, as
applicable. In accordance with section 102.11(a)(3), the foreign
materials will not undergo the necessary change in tariff
classification set out in section 102.20. We find, in accordance
with section 102.11(b)(1), that the foreign garlic, in all cases,
imparts the essential character to the imported segments.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Should you wish to request an administrative review of this
ruling, submit a copy of this ruling and all relevant facts and
arguments within 30 days of the date of this letter, to the
Director, Office of Regulations and Rulings, U.S. Customs
Service, 1301 Constitution Ave. N.W., Franklin Court, Washington,
D.C. 20229.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport