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NY D83064




October 15, 1998

CLA-2-21:RR:NC:SP:232 D83064

CATEGORY: CLASSIFICATION

TARIFF NO.: 2101.20.5400; 2101.20.5800

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 an Iced Tea Mix from Canada; Article 509

Dear Mr. Mines:

In your letter dated September 17, 1998, on behalf of Western Basic Ingredients Limited, you requested a ruling on the status of an Iced Tea Mix from Canada under the NAFTA. Information and samples were submitted with your initial request dated June 5, 1998. Your request also asks for the country of origin for marking purposes of the product.

The subject merchandise is stated to contain 95.24 percent sugar, 2.6 percent citric acid, 1.6 percent tea powder, .1 percent natural and artificial flavors, .1 percent silicon dioxide, and 0.36 percent color. The origin of the sugar will be one of the following: from a non-NAFTA source, which is refined in Canada, from a non-NAFTA source, which is refined in the United States, or the sugar will be grown and refined in the United States. The other ingredients are of Canadian or U.S. origin, except the tea, which could be either from the U.S or India. It is noted that in the case when the tea is from the U.S., the tea powder is produced in the U.S. from tea leaves from India. All of the ingredients will be blended in Canada to produce the Iced Tea Mix. The product will be imported in 540 or 900 gram packages for retail sale.

The applicable subheading for the Ice Tea Mix, if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 2101.20.5400 Harmonized Tariff Schedules of the United States (HTS), which provides for extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or mate...other...other ...articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17...described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 2101.20.5800, HTS, and dutiable at the rate of 32.3 cents per kilogram plus 9 percent ad valorem.

In the case where the sugar is produced and refined in the United States and the tea powder is from the United States, the Iced Tea Mix being made entirely in the territory of Canada or the United States using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). If classified under subheading 2101.20.5400, the Iced Tea Mix will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations and agreements.

In the case where the tea powder is produced in the United States, and non-NAFTA sugar is refined in Canada or in the United States, each of the non-originating materials used to make the Ice Tea Mix has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21. If classified under subheading 2101.20.5400, the Iced Tea Mix will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

In the case when the tea powder is produced in India, the Iced Tea Mix does not qualify for preferential treatment under the NAFTA because the non-originating materials used in the production of the goods do not undergo the change in tariff classification required by General Note 12(t)/21, HTSUSA.

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 the country of origin marking requirements for the Iced Tea Mix.

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.

On October 11, 1996, the President signed the Miscellaneous Trade and Technical Corrections Act of 1996. Section 14 of the Act amended the country of origin marking statute (19 U.S.C. 1304) to exempt imports of certain specified coffee, tea and spices from the marking requirements of 19 U.S.C. 1304 (a) and (b). As a result neither the imported products nor their containers are required to be marked with the foreign country of origin. This statutory exemption is effective for goods entered, or withdrawn from warehouse, for consumption on or after October 11, 1996. The Ice Tea Mix classified under subheadings 2101.20.5400 and 2101.20.5800, HTS, are among the products which have been included in this statutory marking exemption. Therefore, neither the Ice Tea Mix nor its containers are required to be marked with the foreign country of origin.

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,

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