CLA-2-17:OT:RR:NC:232
Ms. Carolyn Leski
BCB International Inc.
1010 Niagara Street
Buffalo, NY 14213
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of food products from Canada; Article 509
Dear Ms. Leski:
In your letter dated June 10, 2015, on behalf of your client, Gluten Free Wholesale, you requested a tariff classification ruling.
Samples were submitted with your request. They were examined and disposed of. The subject merchandise consists of two varieties of Joseph’s brand Nutless Clusters. Both food products, described as natural bite-size snacks to be sold in grocery stores, are square-shaped and measure approximately ¼” long. Nutless Clusters are products of Canada. They are packaged in polybags with a net weight of 160 grams.
Joseph’s Original Nutless Clusters are said to contain 15-20 percent evaporated cane sugar juice, 25-30 percent pitted dates, 15-20 percent brown rice crisps, 15-20 percent butter, 10-15 percent coconut and up to 5 percent of the following: vanilla, sea salt and mixed tocopherols. Joseph’s Chocolate Nutless Clusters are said to contain 15-20 percent evaporated cane sugar juice, 2-25 percent pitted dates, 15-20 percent brown rice crisps, 10-15 percent coconut, 15-20 percent coconut oil and up to 5 percent of the following: vanilla, sea salt, mixed tocopherols, semi-sweet chocolate chips and unsweetened chocolate. All ingredients are blended, cooked, baked and cut into bite-size squares before being packed for shipment to the United States.
The evaporated cane sugar juice is a product of Brazil. The pitted dates are a product of Iran. The coconut is a product of the Philippines. The brown rice crisps and sea salt are products of the United States. The butter, vanilla, mixed tocopherols, semi-sweet chocolate chips, unsweetened chocolate and coconut oil are products of Canada.
The applicable tariff provision for the Joseph’s Original Nutless Clusters will be 1704.90.3550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sugar confectionery (including white chocolate), not containing cocoa: other: confections or sweetmeats ready for consumption: other: other…put up for retail sale: other. The rate of duty will be 5.6 percent ad valorem.
The applicable tariff provision for the Joseph’s Chocolate Nutless Clusters 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/.
Your inquiry also requests a ruling on the eligibility for preferential tariff treatment under the NAFTA of the Nutless Clusters produced in Canada.
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;
Based on the facts provided, Joseph’s Original Nutless Clusters, when made in Canada using evaporated cane sugar juice from Brazil, pitted dates from Iran, coconut from the Philippines, brown rice crisps and sea salt from the United States, butter, vanilla and mixed tocopherols from Canada, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A) and General Note 12 (t) 17.2. It will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
Also, based on the facts provided, Joseph’s Chocolate Nutless Clusters, when made in Canada using evaporated cane sugar juice from Brazil, pitted dates from Iran, coconut from the Philippines, brown rice crisps and sea salt from the United States, butter, vanilla, mixed tocopherols, semi-sweet chocolate chips, unsweetened chocolate and coconut oil from Canada, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A) and General Note 12 (t) 18.5. It 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 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 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 Frank Troise at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division