CLA-2-18:OT:RR:NC:N2:232
Cheryl McIntosh
Sun-Rype Products LTD
1165 Ethel Street
Kelowna, BC
Canada, V1Y- 2W4 2W4
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of Energy Bars from Canada; Article 509.
Dear Ms. McIntosh:
In your letter dated January 15, 2018, you requested a tariff classification ruling and status of Energy Bars from Canada under the NAFTA. You submitted ingredients breakdown and product samples with your request. The samples will be retained in our office.
The subject merchandise consists of two Energy Bars, “Raspberry Chocolate” and “Chocolate Coconut”, sold under the brand name “SunRype”. The “Raspberry Chocolate” Energy Bar consists of 6.6 percent Apple Juice Concentrate, 3.0 percent Organic Sun Flower Oil, 4.7 percent Fancy Molasses, 2.7 percent Dried Unsweetened Coconut, 3.4 percent Brown Flaxseed, 5.1 percent Hulled Sunflower Kernels, 6.3 percent Raisins, 11.2 percent Brown Rice Syrup, 10.2 percent Pea Protein, 11.9 percent Semi-Sweet Vegan Chocolate chips, 8.5 percent Quick Oats Flakes, 5.4 percent Thick Rolled Oats and 20.4 percent SunRype Manufactured Diced Raspberry Pieces and less than one percent of the following: Sea Salt, Natural Raspberry Flavor, Green Tea Extract Powder and Ginseng Root Powder.
The “Chocolate Coconut” energy bar consists of 6.9 percent Apple Juice Concentrate, 3.0 percent Organic Sunflower Oil, 5.0 percent Fancy Molasses, 6.1 percent Dried Unsweetened Coconut, 3.3 percent Brown Flaxseed, 4.7 percent Hulled Sunflower Kernels, 6.1 percent raisins, 11.8 percent Brown Rice Syrup, 10.1 percent Pea Protein, 11.9 percent Semi-Sweet Vegan Chocolate chips, 8.6 percent Quick Oat Flakes, 4.7 percent Thick Rolled Oats, 17.0 percent SunRype Manufactured Apple Pieces and less than one percent of the following: Sea Salt, Natural Coconut Flavour, Green Tea Extract Powder and Ginseng Root Powder. The ingredients are combined in Canada to make Energy Bars which will be put up for retail sale.
The applicable subheading for the “Raspberry Chocolate” and “Chocolate Coconut” Energy 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 the World Wide Web at https://hts.usitc.gov/current.
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 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 Energy Bars, when made in Canada 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. The Energy Bars 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 Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division