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NY A83120




May 10, 1996

CLA-2-17:RR:NC:FC:232 A83120

CATEGORY: CLASSIFICATION

TARIFF NO.: 1702.90.5800

Mr. Gregory Kozak
Canadian Blending & Processing, Inc.
P.O. Box 1102
Ann Arbor, MI 48106-1102

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of sucrose/glucose syrup from Canada; Article 509

Dear Mr. Kozak:

In your letter dated April 24, 1996 you requested a ruling on the status of sucrose/glucose syrup from Canada under the NAFTA. Your request also asks for the country of origin for marking purposes of the product.

A sample was submitted with your request. The product is described as a blend of 90 percent sucrose and 10 percent glucose in liquid form with no added color or flavor. The blend will contain 70 percent sugar solids. You state that granular refined cane sugar from Mexico is imported into Canada where hot water is added under agitation and steam heat to produce a sugar solution. This solution will be blended into the proper proportion with 42 DE corn syrup which is produced in the United States and imported into Canada. The sucrose/glucose blend will be filtered and pumped into storage. The product will be shipped in liquid tankers.

The applicable tariff provision for the sucrose/glucose syrup will be 1702.90.5800, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Other sugars...sugar syrups not containing added flavoring or coloring matter...other...other: Blended syrups described in additional U.S. note 4 to chapter 17...other. The general rate of duty will be 37.9 cents per kilogram of total sugars plus 5.7 percent ad valorem.

The sucrose/glucose syrup, 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 described in U.S. note 19 to subchapter 6 of chapter 99 HTS pursuant to subheading 9906.17.21. If the quantitative limits of U.S. note 19 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 9906.17.22, HTS. If valued over 31.5 cents per kilogram, the rate of duty will be 84.2 percent ad valorem, pursuant to subheading 9906.17.23, 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.

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 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 interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).

Section 134.1(b) of the interim 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 interim 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 interim 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 interim 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 sucrose/glucose syrup 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 sucrose/glucose syrup is a good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the interim 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 interim 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 interim regulations to the facts of this case, we find that the imported sucrose/glucose syrup is a good of "Mexico" for marking purposes, since it satisfies the requirements of 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, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.

Sincerely,

Roger J. Silvestri
Director,

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