CLA-2-17:OT:RR:NC:N2:232
Juan Aristizabal
BFD Florida Group, Inc.
9143 SW 77th Ave B203
Miami, FL 33156
RE: The tariff classification, country of origin and status under the United States-Colombia Trade Promotion Agreement (CTPA), of Panela Sugar from Colombia.
Dear Mr. Aristizabal:
In your letter dated May 16, 2019, you requested a ruling on the tariff classification, country of origin and status of Panela Sugar from Colombia under the CTPA. You provided samples and ingredients breakdown for our review. The samples will be retained in our office.
The subject merchandise is described as Panela Sugar with a stated polarity of approximately 66 degrees. The sugar is obtained from the dehydration of water from the sugar cane juice. The Panela Sugar is said to contain 99.487 percent sugarcane juice (country of origin: Colombia), 0.5 percent coconut palm oil (country of origin: Vietnam), and 0.013 percent sodium bicarbonate (country of origin: Colombia). The ingredients are combined in Colombia to make the Panela Sugar. Shipments will be in bags of 0.5 kilograms, 2.5 kilograms and 6 gram packets to be put up for retail sale.
The applicable subheading for Panela Sugar from Colombia will be 1701.13.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Cane or beet sugar and chemically pure sucrose, in solid form: Raw sugar not containing added flavoring or coloring matter: Cane sugar specified in subheading note 2 to this chapter: Described in additional U.S. note 5 to this chapter and entered pursuant to its provisions.. The rate of duty will be 1.4606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 0.943854 cents per kilogram. If not described in additional U.S. subheading note 2 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.13.5000, HTSUS. The rate of duty will be 33.87 cents per kilogram. In addition, products classified under subheading 1701.13.5000, HTSUS, will be subject to additional duties based on their value as described in subheadings 9904.17.01 to 9904.17.07, HTSUS.
Your inquiry also requests a ruling on the country of origin and eligibility for preferential tariff treatment under the United States-Colombia Trade Promotion Agreement (U.S.-Colombia TPA) of Panela Sugar from Colombia.
General Note 34, HTSUS, sets forth the criteria for determining whether a good is originating under the CTPA. General Note 34(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 under the terms of this note if—
(i) the good is a good wholly obtained or produced entirely in the territory of Colombia, the United States, or both;
(ii) the good was produced entirely in the territory of Colombia, 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 (o) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (o) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of Colombia, the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note.
Based on the facts provided, the Panela Sugar, when made in Colombia qualifies for preferential treatment under the U.S.-Colombia Trade Promotion Agreement because the merchandise will meet the requirements of HTSUS General Note 34(b)(ii)(A) and General Note 17.1. The Panela Sugar will therefore be entitled to a free rate of duty under the CTPA upon compliance with all applicable laws, regulations and agreements.
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, CBP Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304.
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 . . . .
A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
Applying the Marking Rules set forth in section 304 of the Tariff Act of 1930, as amended and Part 134 of the CBP Regulations, we find that the country of origin of the Panela Sugar is Colombia.
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 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 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 Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division