HQ 0951130 - Classification of Total Invert Syrup - United States International Trade Commision Rulings

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HQ 951130

June 9,1992

CLA-2 CO:R:C:F 951130 JGH

CATEGORY: CLASSIFICATION

TARIFF NO.: 1702.90

Mr. Gregory Kozak
Canadian Blending & Processing, Inc.
P.O.Box 7279
Windsor, Ontario N9C 4E9
Canada

RE: Classification of Total Invert Syrup

Dear Mr. Kozak

Your letter of January 24, 1992, concerns the tariff status of total invert syrup made in Canada from raw sugar from Australia.

FACTS:

Raw sugar from Australia is refined in Canada. After refining, the sugar is dissolved in water, heated and hydrolyzed. The hydrolysis process involves the addition of concentrated hydrochloric acid, heating and agitation. The reaction is halted with the addition of sodium hydroxide and/or sodium carbonate. The result is that the 12 carbon sucrose in the sugar is reduced to 6 carbon fructose and 6 carbon dextrose, with small amount of sucrose remaining. The component percentages of the invert syrup is given as 47.5 percent fructose, 47.5 percent dextrose, and a maximum of 5 percent sucrose.

ISSUE:

Whether there has been a substantial transformation into new and different sugars for quota, country of origin and Canadian Free Trade purposes.

LAW AND ANALYSIS:

From the refined sugar, an invert syrup of two different types of sugar are made: fructose and dextrose. These sugars are not only different from sucrose, but have different uses as well.

Thus, they are considered new and different products. The raw cane sugar from Austalia is classifiable as sugar in subheadings 1701.11.01 or 1701.11.03, HTSUS, and even though refined in Canada, it remains sugar, and, therefore, a product of Australia. The invert syrup, on the other hand, becomes a product of Canada, classifiable in subheadings 1702.90.31 or 1702.90.32, HTSUS, depending on the quota status of the syrup.

As to the standing of the invert syrup under the United States-Canada Free Trade Agreement Act (FTA), General Note 3(c)(vii)(R)(4) requires that for the FTA to apply there must be a change to heading 1704. In this case the only change was from heading 1701 to heading 1702, so that the invert syrup would not be considered a product of Canada for the purposes of FTA.

HOLDING:

Raw sugar from Australia refined in Canada remains, for tariff purposes, a product of Australia.

The same refined sugar coverted into invert syrup in Canada is a product of Canada in subheading 1702.90.31 or 1702.90.32, HTSUS, for quota, classification and marking purposes, but not for the FTA.

Sincerely,

John Durant, Director

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