CLA-2-18:RR:NC:SP:232 J85679
Mr. Richard L. Williams
Archer Daniels Midland Company
Department of Corporate Compliance and Regulatory Affairs
1001 Brush College Road
Decatur, Illinois 62521
RE: The tariff classification of sweetened cocoa powder from Canada
Dear Mr. Williams:
In your letter dated June 3, 2003 you requested a tariff classification ruling.
A sample was submitted with your request. The subject merchandise is stated to contain 36 percent cocoa powder and 64 percent sugar. The cocoa powder is produced in Canada from cocoa cake from Indonesia, Malaysia, Africa or Ecuador. The sugar is stated to be from non-Canada sources.
The applicable subheading for the sweetened cocoa powder, if imported in quantities that fall within the limits described in additional U.S. note 1 to chapter 18, will be 1806.10.1000 Harmonized Tariff Schedules of the United States (HTS), which provides for chocolate and other food preparations containing cocoa: cocoa powder containing added sugar or other sweetening matter: containing less than 65 percent by weight of sugar...described in additional U.S. note 1 to this chapter and entered pursuant to its provisions. The general rate of duty will be free. If the quantitative limits of additional U.S. note 1 to chapter 18 have been reached, the product will be classified in subheading 1806.10.1500, HTS, and dutiable at the rate of 21.7 cents per kilogram.
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 sweetened cocoa powder 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 sweetened cocoa powder 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 of this case, we find that the imported sweetened cocoa powder is a good of either “Indonesia”, “Malaysia”, “Africa”, or “Ecuador”, for marking purposes, noting the requirements of Section 102.11 (b) (1).
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).
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