MAR-2 OT:RR:NC:N2:232
Jillian Carpenter
Delegat USA Inc.
555 Mission Street, Suite 2625
San Francisco CA 94105
RE: The tariff classification, status under the United States-Australia Free Trade Agreement (UAFTA), and country of origin for wine from Australia.
Dear Ms. Carpenter:
In your letter dated March 14, 2019, on behalf of your client, Natalie Milich, San Francisco, CA, you requested a ruling on the country of origin and the status of wine from Australia under the UAFTA.
Product labels and descriptive literature were submitted with your letter. Additional information was submitted via email on March 27, 2019. The subject merchandise is described as three varieties of bottled red wine: Barossa Valley Estate Shiraz; Barossa Valley Estate Cabernet Sauvignon; and Barossa Valley Estate GSM. The red wines are made from grapes grown, fermented, blended and matured in Australia. Barossa Valley Estate Shiraz, Barossa Valley Estate Cabernet Sauvignon and Barossa Valley Estate GSM all have an alcoholic content of 14 percent by volume. The wine is produced in Australia where it is shipped to New Zealand in ISO tanks for bottling. The wine is imported into the United States in 750 ml bottles. The value of the Barossa Valley Estate Shiraz is $9.77 per liter, the Barossa Valley Estate Cabernet Sauvignon is $9.77 per liter and Barossa Valley Estate GSM is $9.77 per liter.
The applicable subheading for the Barossa Valley Estate Shiraz, Barossa Valley Estate Cabernet Sauvignon, and Barossa Valley Estate GSM Red Wine will be 2204.21.5040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Wine of fresh grapes, including fortified wines: grape must other than that of heading 2009; Other wine: In containers holding 2 liters or less: Other: Of an alcoholic strength by volume not over 14 percent vol.: Other…Valued over $1.05/liter: Other: Red. The rate of duty will be 6.3 cents per liter.
General Note 28(b), HTSUS, sets forth the criteria for determining whether a good is originating under the United States-Australia Free Trade Agreement, UAFTA. General Note 28(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UAFTA country under the terms of this note only if –
(i) the good is a good wholly obtained or produced entirely in the territory of Australia or of the United States, or both;
(ii) the good was produced entirely in the territory of Australia or of the United States, or both, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note;
(B) the good otherwise satisfies any applicable regional value content requirement referred to in subdivision (n) of this note; or
(C) the good meets any other requirements specified in subdivision (n) of this note;
and such good satisfies all other applicable requirements of this note;
(iii) the good was produced entirely in the territory of Australia or of the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note; or
(iv) the good otherwise qualifies as an originating good under this note,
and is imported directly into the customs territory of the United States from the territory of Australia.
Based on the facts provided, the Barossa Valley Estate Shiraz, Barossa Valley Estate Cabernet Sauvignon, and Barossa Valley Estate GSM Red Wine described above does not qualify for UAFTA preferential treatment because the wines are not imported directly into the customs territory of the United States from the territory of Australia.
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 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 C.F.R. § 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. 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 [the marking laws and regulations].” A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See Texas Instruments, Inc. v. United States, 69 C.C.P.A. 142, 681 F.2d 778 (1982). Bottling Australian wine in New Zealand does not create a new article. Therefore, the country of origin for the Barossa Valley Estate Shiraz, Barossa Valley Estate Cabernet Sauvignon, and Barossa Valley Estate GSM Red Wine is Australia.
In addition, imports under this subheading will be subject to a Federal Excise Tax (26 U.S.C. 5051). Please be advised that information on Federal Excise Tax, and additional requirements which are imposed on this product by the Alcohol and Tobacco Tax and Trade Bureau, can be obtained by contacting the TTB at: 1310 G Street, NW., Suite 300, Washington, D.C. 20220 Telephone number - 202-453-2000, Email - [email protected].
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.
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 177 of the Customs Regulations (19 CFR Part 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 Frank Troise at frank.l.troise.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division