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NY A89824





December 11, 1996

CLA-2-13:RR:NC:2:238 A89824

CATEGORY: CLASSIFICATION

TARIFF NO.: 1302.19.4040

Mr. Asier Ania
Curanderos Ltd.
P.O, Box 1009 Station K.
Toronto, Ontario, Canada
M4P 2V3

RE: The tariff classification and country of origin marking, under the North American Free Trade Agreement (NAFTA), of Una de Gato (Cat's Claw) and Ulcera (Hercampure) liquid extracts from Canada; Article 509

Dear Mr. Ania:

In your letter dated November 21, 1996, you requested a ruling on the tariff classification and country of origin of Una de Gato (Cat's Claw) and Ulcera (Hercampure) liquid extracts from Canada, under the NAFTA.

The first product, Una de Gato (Cat's Claw), consists of a glass bottle, with a plastic cap and label, containing 50ml of a hydroalcoholic tincture composed of Una de Gato (Cat's Claw) extract dissolved in ethanol (40% by weight) and distilled water (60% by weight). According to your letter, you import the raw inner bark of the cat's claw vine [Uncaria Tomentosa (Willd.) DC] from Peru into Canada, from which the extract is produced by a Canadian manufacturer you contract with. The manufacturer packs the extract in 50ml and 100ml bottles, which are then shipped to the U.S. for retail sale. According to the product literature, Una de Gato has been traditionally used in Peru for conditions such as: menstrual problems, cancer, gastritis, arthritis, prostatitis, fever, etc.

The second product, Ulcera (Hercampure), also consists of a glass bottle, with a plastic cap, containing 50ml of a hydroalcoholic tincture composed of an extract obtained from the herb, Hercampure (Gentiana Prostrata L.), dissolved in ethanol (40% by weight) and distilled water (60% by weight). You state in your letter that you import the raw herb from Peru into Canada, from which the extract is produced by a Canadian manufacturer you contract with. The manufacturer packs the extract in 50ml and 100ml bottles, which are then shipped to the U.S. for retail sale. According to your letter, this product is indicated for chronic and acute gastritis, heartburn, reflux, indigestion, etc.

The applicable tariff provision for the subject products will be 1302.19.4040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for: "Vegetable saps and extracts: Other: Ginseng; substances having anesthetic, prophylactic or therapeutic properties: Other: Other." The general rate of duty will be 1.3 percent ad valorem.

Each of the non-originating materials used to make the goods has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/18.2. The goods will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

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 to 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 Customs 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.

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 each of the imported products is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the Customs 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 Customs Regulations to the facts of this case, we find that each of the imported products is a "good of a NAFTA country", for marking purposes. Accordingly, in our opinion, the country of origin for each of the subject products will be Canada.

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 Cornelius Reilly at 212-466-5770.

This ruling letter is binding only as to the party to whom it is issued, and may be relied on only by that party.

Sincerely,

Roger J. Silvestri

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