CLA-2-34:OT:RR:NC:2:236
Ms. Karine Gagiryan
Herbalife International of America, Inc.
950 E. 190th Street
Torrance, CA 90502
RE: The tariff classification of “Palson TP8020B with Glycerin” (soap base) from Malaysia and NAFTA eligibility of “Herbalife Bath & Body Bar” (soap bar) from Mexico
Dear Ms. Gagiryan:
In your ruling request dated July 11, 2011, on behalf of Herbalife International of America, Inc.,
you requested a tariff classification and NAFTA eligibility ruling. Samples of the “Palson
TP8020B with Glycerin” (soap base) and “Herbalife Bath & Body Bar” (soap bar) were
submitted for review.
The “Palson TP8020B with Glycerin” is described as a soap base compound which consists of a mixture of sodium palmate, sodium palm kernelate, water, glycerin, and sodium chloride tetrasodium EDTA. You state that the white/cream colored soap pellets are imported in bulk.
You suggest classification under subheading 3401.11.5000, however, based on the product’s imported condition, the applicable subheading for the “Palson TP8020B with Glycerin” will be 3401.20.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Soap; organic surface-active products and preparations for use as soap, in the form of bars, cakes, molded pieces or shapes, whether or not containing soap; paper, wadding, felt and nonwovens impregnated, coated or covered with soap or detergent: Soap and organic surface-active products and preparations, in form of bars, cakes, molded pieces or shapes, and paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent: Soap in other forms. The rate of duty will be free.
You request a ruling on whether the “Herbalife Bath & Body Bar”, if made in Mexico, incorporating the non-originating “Palson,” will qualify as originating goods under the NAFTA.
The “Herbalife Bath & Body Bar” is a standard sized, white oval shaped bar of soap, with the word “HerbalAloe” across its center. The soap bar is packaged in clear plastic wrap and an appropriate sized white cardboard box. You state that the “Herbalife Bath & Body Bar” is currently made in the United States with the “Palson” base described above and additional minor substances such as fragrance, titanium dioxide, olea europaea (olive) fruit oil, grapeseed oil, ascorbic acid, soybean oil RBD, vitamin E-acetate, USP, vitamin A palminate, aloe barbadensis leaf juice, and FD & C green No. 3.
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, 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 non-originating 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.
Your inquiry does not provide enough information for us to give a NAFTA eligibility ruling on the “Herbalife Bath & Body Bar.” Your request for a NAFTA ruling should include a detailed description of the manufacturing process, the source and detailed description of all originating and non-origination materials, and a cost breakdown of the completed product. When this information is available, you may wish to consider resubmission of your request. If you decide to resubmit your request, please include all of the material that we have returned to you.
Perfumery, cosmetic, and toiletry products are subject to the requirements of the Food, Drug and
Cosmetic Act, and the Fair Packaging and Labeling Act (FPLA), which are administered by the U.S. Food and Drug Administration. Questions regarding FDA requirements may be addressed to the U.S. Food and Drug Administration, Office of Cosmetics and Colors, 5100 Paint Branch Parkway, College Park, MD 20740-3835, telephone number (301) 436-1130.
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/.
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 Nuccio Fera at (646) 733-3434.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division