CLA-2-17:RR:NC:2:232 B80099
Mr. Clark D. Bien
Total Foods Corporation
6018 West Maple Road, Suite 888
West Bloomfield, MI 48322
RE: The tariff classification and status under the North American Free Trade
Agreement (NAFTA), of an Iced Tea Mix and Fruit Punch Mix from Canada; Article
509
Dear Mr. Bien:
In your letter dated December 4, 1996 you requested a ruling on the status
of an Iced Tea Mix and a Fruit Punch Mix from Canada under the NAFTA.
Samples were included with your request. The iced tea mix is stated to
contain 97.08 percent sugar from Mexico, and .33 percent premix (various colors,
flavors, etc.), .24 percent instant tea and 2.35 percent citric acid, all of
which are from the United States. The subject merchandise will be produced in
Canada and shipped to the United States in 2,000 pound bulk bags and 100 pound
paper bags. The product will be repackaged for retail sale after importation.
The fruit punch mix is stated to contain 96.7647 percent sugar from Mexico, and
3.2353 percent premix for Wyler's Tropical Punch or 2.0941 percent citric acid,
.7900 percent maltodextrin, and small quantities of flavors and various other
ingredients all from the United States. The fruit punch mix will be produced in
Canada and shipped to the United States in 2,000 pound bulk bags and 100 pound
paper bags. The product will be repackaged for retail sale after importation.
The applicable subheading for the iced tea mix, if imported in quantities
that fall within the limits described in additional U.S. note 8 to chapter 17,
will be 2101.20.5400 Harmonized Tariff Schedules of the United States (HTS),
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...other ...articles containing over 10 percent by
dry weight of sugar described in additional U.S. note 3 to chapter
17...described in additional U.S. note 8 to chapter 17 and entered pursuant to
its provisions. The general rate of duty will be 10 percent ad valorem. If the
quantitative limits of additional U.S. note 8 to chapter 17 have been reached,
the product will be classified in subheading 2101.20.5800, HTS, and dutiable at
the rate of 34.1 cents per kilogram plus 9.5 percent ad valorem.
The iced tea mix, being wholly obtained or produced entirely in the
territory of Mexico, Canada and the United States, will meet the requirements of
HTSUSA General Note 12(b)(i). Noting 102.19(b) the iced tea mix is a good of
Canada for duty purposes, and if classifiable under subheading 2101.20.5400,
HTS, will be entitled to a free rate of duty under the NAFTA upon compliance
with all applicable laws, regulations, and agreements.
The applicable tariff provision for the fruit punch mix will be
1701.91.5800, Harmonized Tariff Schedule of the United States Annotated
(HTSUSA), which provides for cane or beet sugar and chemically pure sucrose, in
solid form... containing added flavoring matter whether or not containing added
coloring... articles containing over 10 percent by dry weight of sugar described
in additional U.S. note 3 to chapter 17...other. The general rate of duty will
be 37.9 cents per kilogram plus 5.7 percent ad valorem.
The fruit punch mix, being wholly obtained or produced entirely in the
territory of Mexico, the United States, and Canada will meet the requirements of
HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of
duty if 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 for Mexico described in U.S. note 20 to subchapter 6 of
chapter 99 HTS pursuant to subheading 9906.17.39. If the quantitative limits of
U.S. note 20 to subchapter 6 of chapter 99 have been reached, and if the product
is valued not over 31.5 cents per kilogram, it will be dutiable at the rate of
26.5 cents per kilogram in subheading 9906.17.40, HTS. If valued over 31.5
cents per kilogram, the rate of duty will be 84.2 percent ad valorem, pursuant
to subheading 9906.17.41, HTS, upon compliance with all applicable laws,
regulations, and agreements.
This ruling is being issued under the provisions of Part 181 of the Customs
Regulations (19 C.F.R. 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 John Maria at 212-466-5730.
Sincerely,
Roger J. Silvestri
Director,
National Commodity
Specialist Division