CLA-2-09:RR:NC:SP:232
Ms. Pamela Johnson
Starbucks Coffee Company
PO Box 34067
Seattle, WA 98124-1067
RE: The tariff classification of Citron Tea from Italy or Canada
Dear Ms. Johnson:
In your letter dated November 30, 2006, you requested a tariff classification ruling. Your request also asks for the country of origin for marking purposes.
Black tea is shipped to the United States, blended together and combined with natural orange peel, orange and lemon flavors, and citric acid. The resulting bulk tea product is called Citron Tea. The black tea is produced in Sri Lanka. The orange and lemon flavors are produced in the United States. The orange peel and citric acid are produced in the United States, or are from a foreign country. The bulk Citron Tea is exported to either Italy or Canada, where it is packaged into filter bags and retail cartons. The packaged tea blend is re-imported into the United States for sale at Starbucks retail stores and at grocery stores.
The applicable subheading for the Citron Tea will be 0902.30.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Tea, whether or not flavored: Black tea (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3 kg: in tea bags. The rate of duty will be Free. However, all immediate containers and wrappings, and all intermediate containers of tea in packages of less than 2.3 kilograms, net, each are dutiable at the rates applicable to such containers and wrappings if imported empty.
The applicable subheading for the envelope paper will be 4811.59.4040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: Paper and paperboard: coated, impregnated or covered with plastics: Other (than certain specified kinds): In strips or rolls of a width exceeding 15 cm: Other (than certain specified kinds). The rate of duty will be Free.
The applicable subheading for the retail carton will be 4819.20.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Folding cartons, boxes and cases, of non-corrugated paper or paperboard… Other. The rate of duty will be free.
The applicable subheading for the filter bag paper will be 4823.20.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other paper… Filter paper and paperboard: Other. The rate of duty will be free.
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 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 for marking purposes is defined at section 19 CFR 134.1(b), to mean 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 the meaning of Part 134. A substantial transformation is effected when a manufacturer or processor converts or combines an article into a new and different article resulting in a change in name, character, or use.
In this case, the imported green and black teas have not been substantially transformed in the United States, as a result of blending them together, and with the addition of the cucumber flavor and peach flavor. The Citron Tea remains a product of the countries, which produced the green and the black tea for country of origin marking.
In the scenario where the bulk Citron Tea is repacked in Canada, 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.
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 Citron Tea is processed in a NAFTA country "Canada" prior to being re-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 Citron Tea 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 Citron Tea remains a good of the countries which produced the green and black teas, for marking purposes, noting the requirements of Section 102.17 (c).
In the scenario where the bulk Citron Tea is repackaged in Italy prior to being re-imported into the United States, the product has not been substantially transformed. The Citron Tea remains a product of the countries, which produced the green and the black tea for country of origin marking purposes, noting the requirements of section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304).
Section 14 of the Miscellaneous Trade and Technical Corrections Act of 1996, Pub. L. 104-295, 110 Stat. 3514 (October 11, 1996) amended the country of origin marking statute (19 U.S.C. 1304) to exempt imports of certain specified coffee, tea and spices from the marking requirements of 19 U.S.C. 1304 subsections (a) and (b). The Citron Tea is among the products included in this statutory marking exemption. Therefore, neither the Citron Tea nor its containers are required to be marked with the foreign country of origin.
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 Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177, 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 Paul Hodgkiss at 646-733-3031.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division