CLA-2-17:OT:RR:NC:N2:232
Ms. Maria Leiva
Blue Roof Brands LLC
9490 Old Cutler Lane
Coral Gables, FL 33156
RE: The eligibility for preferential duty treatment under the Caribbean Basin Economic Recovery Act (CBERA) of raw cane sugar from Barbados.
Dear Ms. Leiva: In your letter dated July 22, 2022, you requested a ruling on the status of raw cane sugar from Barbados under the Caribbean Basin Economic Recovery Act (CBERA). A product label, flow chart and descriptive literature were submitted with your request.
The subject merchandise is described as DelSur Raw Cane Turbinado Sugar. The raw cane sugar (Product of Barbados) was milled, juiced, clarified, evaporated, filtrated, crystallized, centrifuged, weighted and packaged in Barbados. The finished product is 100 percent raw cane sugar and has a stated polarity of approximately 97.5 to 98.4 degrees. The product contains no added flavoring or coloring. The DelSur Raw Cane Turbinado Sugar will be packaged for importation into the United States in one-, two-, four- or fifty-pound bags.
General Note 7, Harmonized Tariff Schedule of the United States (HTSUS), sets forth the criteria for determining whether a good is an eligible article under the CBERA. General Note 7(b) (i), HTSUS, states, in pertinent part,
Unless otherwise excluded from eligibility by the provisions of subdivisions (d) or (e) of this note, any article which is the growth, product, or manufacture of a beneficiary country shall be eligible for duty-free treatment if that article is provided for in a subheading for which a rate of duty of "Free" appears in the "Special" subcolumn followed by the symbol "E" or "E*" in
parentheses, and if—
(A) that article is imported directly from a beneficiary country into the customs territory of the United States; and
(B) the sum of (I) the cost or value of the materials produced in a beneficiary country or two or more beneficiary countries, plus (II) the direct costs of processing operations performed in a beneficiary country or countries is not less than 35 per centum of the appraised value of such article at the time it is entered. For purposes of determining the percentage referred to in (II) above, the term "beneficiary country" includes the Commonwealth of Puerto Rico, the United States Virgin Islands, and any former beneficiary country. The term “former beneficiary country” means a country that ceases to be designated as a beneficiary country under the Caribbean Basin Economic Recovery Act because the country has become a party to a free trade agreement with the United States. If the cost or value of materials produced in the customs territory of the United States (other than the Commonwealth of Puerto Rico) is included with respect to an article to which this note applies, an amount not to exceed 15 per centum of the appraised value of the article at the time it is entered that is attributed to such United States cost or value may be applied toward determining the percentage referred to in (II) above.
It is noted that Barbados is one of the designated beneficiaries listed in General Note 7 (a), HTSUS. For the purposes of this ruling, we assume that the DelSur Raw Cane Turbinado Sugar is classified under subheading 1701.14.1040, HTSUS, which is a provision for which a rate of duty of “Free” appears in the “Special” subcolumn followed by the symbol “E*.” Based on the information submitted, the DelSur Raw Cane Turbinado Sugar would be shipped directly from Barbados into the customs territory of the United States, thus meeting part (A) of the above requirements. Further, we find that 86 percent of the total cost of production is attributed to the cost or value of the materials produced in Barbados. Therefore, the sum of the cost or value of materials produced in Barbados, plus the direct costs of processing operations performed in Barbados, is not less than 35 percent of the appraised value of the subject DelSur Raw Cane Turbinado Sugar at the time they are entered. Accordingly, we conclude that the DelSur Raw Cane Turbinado Sugar, classified under subheading 1701.14.1040, HTSUS, is a product of Barbados and will be entitled to duty-free treatment under the Caribbean Basin Economic Recovery Act (CBERA/“E”), upon satisfaction of the above-described requirements and compliance with all applicable regulations.
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 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 frank.l.troise.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division