CLA-2-21:RR:NC:FC:232 A85176
Mr. Robert V. Tinkham
Chicago Sweeteners Incorporated
1700 Higgins Road
Suite 610
Des Plaines, Illinois 60018
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a sugar/tea premix blend from Mexico; Article 509
Dear Mr. Tinkham:
In your letter dated June 21, 1996 you requested a ruling on the status of Sugar/tea premix blend from Mexico under the NAFTA. Your request also asks for the country of origin for marking purposes of the product.
Additional information was submitted in a letter dated July 3, 1996. The subject merchandise is stated to contain 96 percent granulated sugar, which will be produced in a non-Nafta country, and 4 percent tea premix, which will be a product of the United States. The tea premix contains citric acid, instant tea, caramel color, calcium silicate, natural lemon flavor, artificial colors and an anti-caking agent. The sugar and tea premix will be imported into Mexico, where they will be blended into the finished product. The sugar/tea premix blend will be imported into the United States in 50, 100 or 2,000 pound containers to be repackaged for retail sale.
The applicable tariff provision for the sugar/tea premix blend will be 2101.20.5800, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or mate...other. The general rate of duty will be 34.1 cents per kilogram plus 9.5 percent ad valorem.
The non-originating material used to make the sugar/tea premix blend has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21. Goods of Mexico, classifiable in subheading 2101.20.5800 entered under the terms of general note 12 of the Harmonized Tariff Schedule of the United States, and imported in quantities that fall within the quantitative limits described in note 20 to subchapter 6 of chapter 99, HTS, will be free of duty pursuant to subheading 9906.21.07. If the quantitative limits of note 20 to subchapter 6 of chapter 99 have been reached, and if the product is valued not over 28.3 cents per kilogram, it will be dutiable at the rate of 23.9 cents per kilogram in subheading 9906.21.08, HTS. If valued over 28.3 cents per kilogram, the rate of duty will be 84.2 percent ad valorem, pursuant to subheading 9906.21.09, HTS, upon compliance with all applicable laws, regulations and agreements. Products of Mexico are not subject to the additional duties described in subchapter 4 of chapter 99.
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
Your inquiry also requests a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. A marked sample was not submitted with your letter for review.
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.
You state that the imported sugar/tea premix blend is processed in a NAFTA country "Mexico" prior to being imported into the U.S. Since, "Mexico" is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported sugar/tea premix blend is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements.
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 sugar/tea premix blend is a good of Mexico for marking purposes, noting Section 102.14.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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 John Maria at 212-466-5730.
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