CLA-2-21:S:N:N7:228 895327
Mr. Robert H. Schor
Barnes, Richardson & Colburn
475 Park Avenue South
New York, NY 10016
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a sugar and gelatin blend from Canada
Dear Mr. Schor:
In your letter dated February 25, 1994, on behalf of Hormel Foods Corporation, you requested a ruling on the status of a sugar and gelatin blend from Canada under the NAFTA.
The product is a dry blend composed of 90 percent sugar and 10 percent gelatin. The gelatin will be manufactured by your client in the United States, and exported to Canada. The sugar is a product of an unidentified non-NAFTA country. The sugar and gelatin blend will be imported in bulk containers, having a net weight of 2570 pounds. After importation, Hormel will prepare a gelatin dessert by adding sugar or dextrose, chemical additives, flavoring, and coloring. The finished dessert mix will then be packed for retail sale.
The applicable tariff provision for the sugar and gelatin blend will be 2106.90.2070, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for food preparations not elsewhere specified or included...other...of gelatin...other...containing sugar derived from sugar cane or sugar beets. The general rate of duty will be 6 percent ad valorem.
The non-originating material (i.e., the sugar) used to make the sugar and gelatin blend has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21. The sugar and gelatin blend will be entitled to a 2.4 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
Your questions concerning whether the sugar and gelatin blend undergoes a substantial transformation in the United States, and the country of origin marking that must appear on the finished, retail packed dessert mix are being referred to the Office of Regulations and Rulings, U.S. Customs Service Headquarters, 1301 Constitution Avenue, N.W., Washington, D.C., 20229. A ruling will be issued to you from that office.
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.
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport