CLA-2-17:RR:NC:SP:232 D84187
Mr. Patrick E. Mines
P. Mines Customs Services
28 Princess Street
P.O. Box 1197
Fort Erie, Ontario L2A 5Y2
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of a Sugar/Starch
Blend from Canada; Article 509
Dear Mr. Mines:
In your letter dated October 23, 1998, on behalf of Redpath
Sugars, you requested a ruling on the status of a sugar/flour
blend from Canada under the NAFTA. Your request also asks for
the country of origin for marking purposes of the product.
The subject merchandise is stated to contain 95 percent
sugar and 5 percent starch. The raw sugar, which will be refined
in Canada, will be produced in either Australia, Brazil,
Guatemala, South Africa or Columbia. The starch will be a
product of Canada or the United States. The ingredients will be
blended in Canada and shipped to the United States in one ton
tote bags. The merchandise will be used in the manufacture of
bakers wares.
The applicable subheading for the 95 percent sugar and 5
percent starch blend, if described in additional U.S. note 5 to
chapter 17 and entered pursuant to its provisions, will be
1701.99.1000, Harmonized Tariff Schedule of the United States
(HTS), which provides for cane or beet sugar and chemically pure
sucrose, in solid form: other. The general rate of duty will be
3.6606 cents per kilogram less 0.020668 cents per kilogram for
each degree under 100 degrees (and fractions of a degree in
proportion) but not less than 3.143854 cents per kilogram. If
not described in additional U.S. note 5 to chapter 17 and not
entered pursuant to its provisions, the applicable subheading
will be 1701.99.5000, HTS. The duty rate will be 37.84 cents per
kilogram. In addition, products classified under subheading
1701.99.5000, HTS, will be subject to additional duties based on
their value as described in subheadings 9904.17.08 to 9904.17.15,
HTS.
The merchandise does not qualify for preferential treatment
under the NAFTA because one of the non-originating materials used
in the production of the goods will not undergo the change in
tariff classification required by General Note 12(t)/17, HTSUSA.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
Your inquiry also requests a ruling on the country of origin
marking requirements for imported articles which are 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 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.
The imported sugar/starch blend is processed in a NAFTA
country "Canada" prior to being imported into the U.S. Since,
"Canada" 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/starch 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 sugar/starch blend is a good of the country producing
the raw sugar for marking purposes, noting Section 102.11(b)(1).
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, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division