CLA-2-24:RR:NC:FC:231 A86017
Mr. Albertto Fortuny
International Entertainment Consultants, Inc.
1403 Mississippi Avenue
Sauget, IL 62201
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of cigars from Mexico; Article 509
Dear Mr. Fortuny:
In your letter, which is undated and received in this office on July 19, 1996, you have requested a ruling on the status of cigars from Mexico under the NAFTA.
The product is comprised of Cuban seed cigars that have been manufactured and packed in Mexico. In your telephone conversation you have indicated that Cuban seed has been grown in Mexico. The country of origin of the tobacco is Mexico. Twenty-five cigars are sealed in a cedar wooden box. Each cigar weighs 12-15 grams; 375 grams per box.
The applicable tariff provision for the cigars, if the value of each is 15 cents or more, but less than 23 cents, will be 2402.10.6000, Harmonized Tariff Schedule of the United States (HTS), which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes, cigars, cheroots and cigarillos, containing tobacco, each valued 15 cents or over but less than 23 cents. The general rate of duty will be US $1.03 per kilogram, plus 2.5 percent ad valorem.
The applicable tariff provision for the cigars, if the value of each is 23 cents or more, will be 2402.10.8000, HTS, which provides for cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes, cigars, cheroots and cigarillos, containing tobacco, each valued 23 cents or over. The general rate of duty will be US $1.03 per kilogram, plus 2.5 percent ad valorem.
The cigars, being wholly obtained or produced entirely in the territory of Mexico, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to an 88.2 cents per kilogram, plus 2.1 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
In addition, imports under these provisions are subject to a Federal Excise Tax (26 USC 5701) as follows:
1) $1.125 per 1,000 on cigars weighing not more than 3 pounds per 1,000;
2) 12.75 percent of the price for which sold but not more than $30 per 1,000.
The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 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 legible, 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.
As provided in section 134.41(b), Customs Regulations [19 CFR 134.41(b)], the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations [19 CFR 134.41(a)], provides that, as a general rule, marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
An examination of the submitted sample indicates that the country of origin appears on the outside of the box, as the marking statute requires. In addition to this marking, the country of origin must also appear on the inside flap of the box.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR 181).
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
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 Ralph Conte at (212) 466-5759.
Sincerely,
Roger J. Silvestri
Director
National Commodity
Specialist Division