CLA-2-21:RR:NC:SP:232 L87652
Ms. Shirley A. Coffield
Coffieldlaw
666 Eleventh Street, N.W., Suite 315
Washington, D.C. 20001
RE: The tariff classification and country of origin of an iced tea mix imported from a foreign trade zone and sent to Canada for repackaging
Dear Ms. Coffield:
In your letter dated September 15, 2005, on behalf of Streamline Foods, Inc., you requested a tariff classification and country of origin marking ruling.
Information was submitted with your initial request dated July 27, 2005. The subject merchandise is an iced tea mix, which is stated to contain 95.63 percent sugar, 3.02 percent citric acid, 1.04 percent tea powder, and 0.31 percent lemon flavor, red flavor and anti-caking agent. The iced tea mix will be produced in a foreign trade zone in Toledo, Ohio from sugar from Costa Rica, Columbia, Brazil, Guatemala, or other, unnamed countries, and tea powder, citric acid, anti-caking agent, coloring and lemon flavor from the United States. The iced tea mix will be removed from the foreign trade zone packaged in tote bags of 1800 to 2700 pounds. After importation into the United States, it will be shipped to Canada for packaging into retail containers of 24 to 100 ounces. The retail containers will be shipped back to the United States.
The applicable subheading for the iced tea mix, imported from the foreign trade zone, if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 2101.20.5400 Harmonized Tariff Schedules of the United States (HTS), which provides for extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or mate...other...other...articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17...described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 2101.20.5800, HTS, and dutiable at the rate of 30.5 cents per kilogram plus 8.5 percent ad valorem. In addition, products classified in subheading 2101.20.5800, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.17.49 to 9904.17.56, HTS.
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 to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
The "country of origin" is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. 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 the meaning of this part. For tariff purposes, the courts have held that a substantial transformation occurs if a new and different article emerges having a distinctive name, character or use. Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
Applying the provisions of Part 134 of the facts of this case, we find that the imported iced tea mix is a good of the United States for marking purposes. Products of the United States are not subject to the country of origin marking requirements of 19 U.S.C. 1304.
Your inquiry also asks whether the iced tea mix is entitled to duty free treatment under subheading 9801.00.1097, HTS, when shipped to Canada for retail packaging and returned to the United States.
Subheading 9801.00.1097, HTS, provides for the free entry of products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad, provided the documentary requirements of section 10.1, Customs Regulations (19 CFR 10.1), are met.
The iced tea mix of U.S. origin that is repackaged into retail containers in Canada and returned to the United States, is not considered to have been advanced in value or improved in condition for the purposes of subheading 9801.00.1097, HTS. As a result, the iced tea mix will be exempt from duty and quotas under this tariff provision when it is returned to the U.S., provided that the documentation requirements of 19 CFR 10.1 are satisfied.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at telephone number (301) 575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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