CLA-2-20:RR:NC:2:231 I84044
Mr. Alain Charette
Formidérable, Inc.
71, Notch Road
Chelsea, Québec J9B 1G5
Canada
RE: The tariff classification and country of origin marking under the North American Free Trade Agreement (NAFTA) of shelled, American pecans that are roasted and coated with maple sugar in Canada and then exported to the United States; Article 509
Dear Mr. Charette:
In your letter, dated June 24, 2002, you requested a ruling on the classification and country of origin marking of shelled, American pecans that are roasted and coated with maple sugar in Canada and then exported to the United States under the NAFTA.
The merchandise is comprised of pecans that are grown and shelled in the United States and then exported to Canada where the following processing occurs: 1) mild roasting, 2) coating with hot, concentrated maple syrup (the maple syrup is of Canadian origin), and 3) drying for a few hours (to evaporate the remaining water in the syrup, resulting in dry sugar). Then the product is packed and exported to the United States.
In your letter you ask whether the processes of roasting and coating with maple sugar qualify the pecans as pecans of Canadian origin for country of origin marking purposes and whether they are subject to NAFTA preference for duty purposes.
The applicable subheading for pecans will be 2008.19.2500, Harmonized Tariff Schedule of the United States (HTS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included, nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together, other, including mixtures, pecans. The general rate of duty will be 9.9 cents per kilogram.
Products classifiable in subheading 2008.19.2500, HTS, being wholly obtained or produced entirely in the territory of Canada and/or 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 under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
The marking rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. Part 102 of the Customs Regulations sets forth the “Rules of Origin” for the purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 articulates the required hierarchy for determining country of origin for marking purposes.
Section 102.11(a)(3) states that the country of origin of a good is the country in which “each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.” Section 102.20(d) articulates the tariff shifts that are required for merchandise that is classifiable in Chapter 20, HTS.
Applying the NAFTA Marking Rules set forth in Part 102 of the Customs Regulations to the facts of this case, we find that for marking purposes, these goods are of Canadian origin. A tariff shift has occurred, as per CR 102.20(d).
Accordingly, shelled, American pecans that are roasted and coated with maple sugar in Canada and then exported to the United States, are products of Canada for the purposes of country of origin marking.
Additional requirements may be imposed on this product by the Food and Drug Administration. You may contact the FDA at:
Food and Drug Administration
Division of Import Operations and Policy
5600 Fishers Lane
Rockville, MD 20857
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR 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 Thomas Brady at (646) 733-3030.
Sincerely,
Robert B. Swierupski
Director
National Commodity
Specialist Division