CLA-2-18:OT:RR:NC:N2:232
Darlene DiBernardo
A.N. Deringer, Inc.
173 West Service Road
Champlain, NY 12919
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of “Powder Blend for UDK201 Chocolate Keto UHT-Powder Base” from Canada; Article 509.
Dear Ms. DiBernardo:
In your letter dated August 27, 2019, on behalf of your client Bariatrix Nutrition Corp, you requested a ruling on the classification and status of a chocolate preparation product under the NAFTA.
The subject merchandise is “Powder Blend for UDK201 Chocolate Keto UHT-Powder Base.” The product consists of Monoglycerides Starpex, Cocoa Powder De Zaan D-11-S, Gum Arabic Instantgum BB, Milk Protein Isolate Prodiet 90, Sucralose Splenda Granular FLAV P DFF-1, Salt Flour 1482, Dairy Enhancer FLAV NAT P SD-2201, and Soluble Fiber Fibersol-2 013100. The Monoglycerides Starpex, Milk Protein Isolate Prodiet 90, Salt Flour 1482, Dairy Enhancer FLAV NAT P SD-2201, and Soluble Fiber Fibersol-2 013100 are all products of the United States. The Cocoa Powder De Zaan D-11-S is a product of the Netherlands. The Gum Arabic instantgum BB is a product of France. The Sucralose Splenda Granular FLAV P DFF-1 may be sourced from the United States or Singapore. The chocolate preparation will be manufactured in Canada and will be used as an ingredient in a UHT drink made in the United States.
The applicable subheading for the “Powder Blend for UDK201 Chocolate Keto UHT-Powder Base” will be 1806.20.9900, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Chocolate and other food preparations containing cocoa: Other preparations in blocks, slabs or bars, weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg: Other: Other: Other: Other: Other. The general rate of duty will be 8.5 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,
Based on the facts provided, the “Powder Blend for UDK201 Chocolate Keto UHT-Powder Base” qualifies for NAFTA preferential treatment, because all of the non-originating ingredients will meet the requirements of HTSUS General Note 12(b)(ii)(A) and General Note 12(t)/18.4. Specifically, each ingredient meets the applicable tariff shift to subheading 1806.20 from any other heading. 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 website 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