CLA-2-19:RR:NC:FC:228 A82284
Ms. Pam Morris
PBB USA Inc.
P.O. Box 950
434 Delaware Avenue
Buffalo, NY 14202
RE: The tariff classification, country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of a beer brewing kit from Canada; Article 509
Dear Ms. Morris:
In your letter dated April 9, 1996, you requested a ruling on the status of a beer brewing kit from Canada under the NAFTA.
The product, known as "Brew Canada", is an in-home beer brewing kit consisting of one can of a blend of liquid malt extract, glucose, hops, and a packet of yeast. Preparation by the consumer involves the addition of sugar and water. The country of origin of the liquid malt extract and glucose is Australia. The country of origin of the hops and yeast is Canada. The final manufacturing is done in Canada where the hops are added to the liquid malt extract and glucose before it is pasteurized and canned. After a cooling period, the label, a packet of yeast, and an outer lid are added to each can. The product is put up for retail sale, packed six cans to a case, weighing 29 pounds. The kit yields approximately 11 bottles of beer per can, or 65 bottles of beer per case.
The applicable tariff provision for the beer brewing kit will be 1901.90.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for malt extract...other malt extract...fluid. The general rate of duty will be 4.4 cents per liter.
The beer brewing kit does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the good will not undergo the change in tariff classification required by General Note 12(t)/19, HTSUSA.
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 the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).
Section 134.1(b) of the interim 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; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).
Section 134.1(j) of the interim regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the interim regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the interim regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.
Part 102 of the interim regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the interim regulations, sets forth the required hierarchy for determining country of origin for marking purposes.
Applying the NAFTA Marking Rules set forth in Part 102 of the interim regulations to the facts of this case, we find that the imported beer making kit is a good of Australia for marking purposes.
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 Stanley Hopard at 212-466-5760.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.
Sincerely,
Roger J. Silvestri
Director
National Commodity
Specialist Division