CLA-2-18:RR:NC:SP:232 M84180
Ms. April J. Collier
Pacific Customs Brokers
PO Box 4505
Blaine, WA 98231-4505
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Chocolate Peanut Butter Oat Bars from Canada; Article 509
Dear Ms. Collier:
In your letter dated June 2, 2006, on behalf of Cakes, etc., in British Columbia, Canada, you requested a ruling on the status of Chocolate Peanut Butter Oat Bars from Canada under the NAFTA.
Samples were submitted with your request. Information was submitted with your initial request dated April 26, 2006. The subject merchandise is in the form of a bar, which is approximately 4 inches long and 3 inches wide. It is noted that only the top of the bar is coated in chocolate. The product is stated to contain oats, corn syrup, peanut butter, brown sugar, margarine, dark chocolate, canola oil, white chocolate, vanilla and glucose. The sugar originates in Australia or Guatemala. All of the other ingredients are from Canada. The product will be manufactured in Canada and shipped to the United States in packages holding six bars each, with 16 packages to a case. The merchandise will be sold to coffee houses, etc., which will display the product unpackaged for sale to the ultimate consumer.
The applicable subheading for the Chocolate Peanut Butter Oat Bars will be 1806.32.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Chocolate and other food preparations containing cocoa: Other, in blocks, slabs or bars: Not filled: Other: Other. The general rate of duty will be 6 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
The subject merchandise cannot be classified in subheading 1806.90.9011, HTS, because it is in the form of a bar.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. ยง 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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 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 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.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division