CLA-2-21:OT:RR:E:NC:N2:228
Ms. Tanis Johnson
Newly Weds Foods Co.
450 Superior Blvd.
Mississauga, Ontario L5T 2R9 Canada
RE: The tariff classification, country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of a seasoning mix from Canada; Article 509
Dear Ms. Johnson:
In your letter dated July 25, 2008 you requested a ruling on the status of a seasoning mix from Canada under the NAFTA.
An ingredients breakdown accompanied your letter. The product is described as a “cheese seasoning”. It is a dry product, imported in 20.2-gram packages, used as a flavoring on crackers. The mix is said to be composed of approximately 30 percent maltodextrin, 27 percent cheese, 10 percent corn flour, 7 percent salt, 3.7 percent yeast maxarome (extract), 3.5 hydrolyzed plant protein, 2 percent glucose, 1.8 percent butter flavor, 1.6 percent cheese flavor, 1.3 percent onion powder, and less than one percent, each, of oleo paprika, oleo turmeric, lactic acid, cheddar flavor, parmesan flavor, butter flavor, and garlic powder.
The corn flour, salt, maltodextrin, and glucose are products of Canada. The cheddar flavor, parmesan flavor, cheese flavor, cheese powder, butter flavor, onion powder, and hydrolyzed plant protein are products of the United States. The oleo paprika and the oleo turmeric are products of India, the garlic powder is from China, and the yeast maxarome is from the Netherlands. In Canada, the ingredients are blended in the prescribed quantities, and packed for export to the United States.
The applicable tariff provision for this seasoning mix will be 2103.90.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for mixed condiments and mixed seasonings…other. The general rate of duty will be 6.4 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/.
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. § 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, …
Based on the facts provided, the product described above does not qualify for NAFTA preferential treatment, because one of the non-originating ingredients (yeast extract) fails to meet the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t)/21.7A(A), noting General Note 12(f)(i). The product will therefore not be entitled to a free rate of duty under the NAFTA.
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. 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.
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 seasoning mix is a good of Canada for marking purposes.
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 Stanley Hopard at 646-733-3029.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division