United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1998 NY Rulings > NY C88321 - NY C88498 > NY C88321

Previous Ruling Next Ruling
NY C88321





June 12, 1998

CLA-2-15:RR:NC:SP:232 C88321

CATEGORY: CLASSIFICATION

TARIFF NO.: 1514.10.9010; 1514.90.9010; 1516.20.1000

Mr. Paul Fedec, Ph.D.
POS Pilot Plant Corp.
118 Veterinary Road
Saskatoon, SK., Canada S7N 2R4

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of High Lauric Acid Canola Oils and Margarine Basestocks from Canada; Article 509

Dear Mr. Fedec:

In your letter dated May 21, 1998 you requested a ruling on the status of High Lauric Acid Canola Oils and Margarine Basestocks from Canada under the NAFTA. Your request also asks for the country of origin for marking purposes of the products.

You indicate that high lauric acid seeds, which are grown in the United States will be shipped to Canada in 2 to 5 ton lots. Once in Canada, the seeds will be crushed and the oil is extracted to produce: crude oil (Laurate Canola), refined and bleached oil (RB Laurate Canola), refined, bleached and deodorized oil (RBD Laurate Canola), and partially hydrogenated basestock IV-1, IV-35, IV-45 (Laurical 1, Laurical 35, Laurical 45). The various oil products will be shipped to the United States in 0.5 and 1.0 liter plastic containers. Special orders may also be shipped in 20 liter pails and in 210 liter drums. The Crude Laurate Canola and the RB Laurate Canola will be used in research, the RDB Laurate Canola will be used in salad oil applications, and the Laurical 1, Laurical 35 and Laurical 45 will be used in margarine formulations.

The applicable tariff provision for the Crude Laurate Canola Oil will be 1514.10.9010, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Rapeseed, colza or mustard oil, and fractions thereof, whether or not refined, but not chemically modified: Crude oil...other...Rape or colza oil and its fractions. The general rate of duty will be 6.8 percent ad valorem.

The applicable tariff provision for the RB Laurate Canola Oil and the RBD Laurate Canola Oil will be 1514.90.9010, HTS, which provides for Rapeseed, colza or mustard oil, and fractions thereof, whether or not refined, but not chemically modified... other...other...other...Rape or colza oil and its fractions. The general rate of duty will be 6.8 percent ad valorem.

The applicable tariff provision for the Laurical 1, Laurical 35 and Laurical 45 will be 1516.20.1000, HTS, which provides for Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, interesterified, reesterified or elaidinized, whether or not refined, but not further prepared...Vegetable fats and oils and their fractions: Rapeseed oil. The general rate of duty will be 8.1 percent ad valorem.

The Crude Laurate Canola Oil, RB Laurate Canola Oil, RBD Laurate Canola Oil, the Laurical 1, Laurical 35 and Laurical 45 Oils, being wholly obtained or produced entirely in the territory of 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 under the NAFTA 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 whether the proposed marking "Product of Canada" is an acceptable country of origin marking for the imported canola oil products if another marking "Distributed by Calgene, Inc., 1920 Fifth Street, Davis, CA 95616" appears on the article which is a country or locality other than the actual country of origin of the article. Copies of product labels for Laurical 15 and Laurical 35, which show the Calgene address as well as a sales office address, were 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 134.45(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. 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.

You state that the imported canola oil products are 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 canola oil products are goods 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 canola oil products are goods of "Canada" for marking purposes, since they satisfy the requirements of Section

Section 134.46, Customs Regulations (19 CFR 134.46), deals with cases in which the words "United States," or "American," the letters "U.S.A.," any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced, appears on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin. In such a case, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by "Made in," Product of," or other words of similar meaning.

In order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality other than the actual country of origin appears.

The proposed marking of imported canola oil products, as described above, satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported merchandise, if "Product of Canada" or "Made in Canada" appear in close proximity and in comparable size lettering to all U.S. addresses shown on the product labels.

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.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: