CLA-2-17:RR:NC:SP:232 J81393
Mr. Mike Daly
Livingston International Trade Services Inc.
100 Walnut Street
Champlain, NY 12919
RE: The tariff classification of light soft syrup from Canada
Dear Mr. Daly:
In your letter dated February 14, 2003, on behalf of Rogers Sugar Ltd., you requested a tariff classification ruling. Your request also asks for the country of origin for marking purposes of the product.
Information and a sample were submitted with your initial request dated January 6, 2003. The submitted sample was sent to the Customs laboratory for analysis.
The subject merchandise is described as light soft syrup. It is noted that the submitted information also refers to the merchandise as soft syrup molasses. The product is manufactured in Canada from raw cane sugar (polarity less than 99.4 greater than 98.75) from Australia or Guatemala. You indicate that the soft syrup molasses is produced from the residual molasses layer left on the raw sugar at the raw sugar mill. The residual molasses layer is washed off the raw sugar to form affination syrup. A strike of sugar is crystallized from the affination syrup. The residual syrup (molasses) from this crystallization is clarified and passed through a bed of bone charcoal. Another strike of sugar (golden yellow) is crystallized from this syrup. The residual syrup is the soft syrup molasses. After importation, the merchandise will be warmed to 50 degrees centigrade and mixed with white beet sugar to form brown sugar. The brown sugar will be packaged for sale to consumers. You indicate that, with the exception of warming and mixing, the imported soft syrup will not be processed in any fashion after importation into the United States.
The Customs laboratory has determined that the light soft syrup has the characteristics of a refinery molasses. The submitted sample contains 61.0 percent total sugars (50.4 percent sucrose, 6.36 percent glucose and 4.26 percent fructose). The product has a Brix of 77, a sulfated ash content of 5.2 percent, and contains 20.8 percent soluble non-sugar solids in the total soluble solids.
The applicable subheading for the light soft syrup (soft syrup molasses) will be 1703.10.3000, Harmonized Tariff Schedule of the United States (HTS), which provides for Molasses resulting from the extraction or refining of sugar: cane molasses: imported for (a) the commercial extraction of sugar or (b) human consumption. The general rate of duty will be 0.35 cents per liter.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
Your inquiry also requests a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. A marked sample was not submitted with your letter for review.
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 appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the 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 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 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 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 light soft syrup is 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 light soft syrup is a “good of a NAFTA country", and thus subject to the NAFTA marking requirements.
Part 102 of the 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 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 regulations to the facts presented, we find that the country of origin for marking purposes of the imported light soft syrup is the country producing the raw sugar, either Australia or Guatemala, noting Section 102.11(b)(1).
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