CLA-2-18:RR:NC:SP:232 C89613
Mr. Patrick E. Mines
P. Mines Customs Services
28 Princess Street
P.O. Box 1197
Fort Erie, Ontario L2A 5Y2
RE: The tariff classification of a cocoa blend from Canada.
Dear Mr. Mines:
In your letter dated June 29, 1998, on behalf of Redpath Sugars, you
requested a tariff classification ruling. Your
request also asks for the country of origin for marking purposes of the product.
The subject merchandise is stated to contain 64 percent sugar and 36
percent cocoa powder. The sugar is refined in Canada from raw sugar produced in
Australia, Brazil, Guatemala, South Africa or Columbia. The cocoa powder is
produced in either the United States, Canada or a non-NAFTA country from cocoa
beans from a non-NAFTA country. The cocoa blend will be produced in Canada and
shipped to the United States in 50, 100, 550, 600 or 2000 pound containers for
use in drink mixes, dessert mixes or confections.
The applicable subheading for the 64 percent sugar and 36 percent cocoa
powder blend, if imported in quantities that fall within the limits described in
additional U.S. note 1 to chapter 18, will be 1806.10.1000 Harmonized Tariff
Schedules of the United States (HTS), which provides for chocolate and other
food preparations containing cocoa: cocoa powder containing added sugar or
other sweetening matter: containing less than 65 percent by weight of
sugar...described in additional U.S. note 1 to this chapter and entered pursuant
to its provisions. The general rate of duty will be free. If the quantitative
limits of additional U.S. note 1 to chapter 18 have been reached, the product
will be classified in subheading 1806.10.1500, HTS, and dutiable at the rate of
23 cents per kilogram.
This ruling is being issued under the provisions of Part 177 of the Customs
Regulations (19 C.F.R. 177).
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 C.F.R.
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 appropriate Customs Regulations. The Marking Rules
used for determining whether a good is a good of a NAFTA country are contained
in Part 102, Customs Regulations. The marking requirements of these goods are
set forth in Part 134, Customs Regulations.
Section 134.1(b) of the 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 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 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 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 cocoa blend is processed in a NAFTA country
"Canada" prior to being imported into the U.S. Since, "Canada" is defined under
19 C.F.R. §134.1(g), as a NAFTA country, we must first apply the NAFTA Marking
Rules in order to determine whether the imported cocoa blend is a good of a
NAFTA country", and thus subject to the NAFTA marking requirements.
Part 102 of the 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 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 regulations
to the facts of this case, we find that the imported cocoa blend is a good of
"Canada" for marking purposes, since it satisfies the requirements of Section
102.20 (d).
This ruling is being issued under the provisions of Part 181 of the Customs
Regulations (19 C.F.R. 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.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division