CLA-2-17:RR:NC:SP:232 J86801
Mr. Rodney Ralston
UPS Supply Chain Solutions
One Trans-Border Drive
Champlain, NY 12919
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Total Invert Syrup from Canada; Article 509
Dear Mr. Ralston:
In your letter dated July 10, 2003, on behalf of Canadian Blending & Processing Inc., you requested a ruling on the status of Total Invert Syrup from Canada under the NAFTA. A similar product was the subject of Headquarters ruling 951130 dated June 9, 1992, which was enclosed with your letter. The facts describing the product are the same as presented in the HQ ruling, with the exception of the country of origin of the raw sugar.
Raw cane sugar from various non-NAFTA countries is imported into Canada where it is refined. After refining, the sugar is dissolved in water, heated and hydrolyzed. Hydrolysis involves the addition of concentrated hydrochloric acid, heating and agitation. Sodium hydroxide and/or sodium carbonate are added to stop the hydrolysis process. The final product is an invert syrup with 47.5 percent fructose, 47.5 percent dextrose and a maximum of 5 percent sucrose. The merchandise will be imported in bulk in tanker trucks.
The applicable subheading for the Total Invert Syrup, if described in additional U.S. note 5 to chapter 17 and entered pursuant to its provisions, will be 1702.90.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavoring or coloring matter; artificial honey, whether or not mixed with natural honey; caramel: Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50 percent by weight of fructose: Derived from sugar cane or sugar beets: Containing soluble non-sugar solids (excluding any foreign substances that may have been added or developed in the product) equal to 6 percent or less by weight of the total soluble solids. The rate of duty will be on the total sugars at the rate of 3.6606 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1702.90.2000, HTS. The rate of duty will be on the total sugars at the rate of 35.74 cents per kilogram. In addition, except for goods of Canada, Mexico or Jordan, products classified under subheading 1702.90.2000, HTS, will be subject to additional duties based on their value as described in subheadings 9904.17.08 to 9904.17.15, HTS.
The merchandise does not qualify for preferential treatment under the NAFTA because the non-originating raw sugar used in the production of the good will not undergo the change in tariff classification required by General Note 12(t)/17, HTSUSA.
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 Total Invert 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 Total Invert 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 of this case, we find that the imported Total Invert Syrup is a good of the country which produced the raw cane sugar, 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 C.F.R. 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.
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, Commercial Rulings Division, Bureau of Customs and Border Protection, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division