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NY D83949




November 3, 1998

CLA-2-17:RR:NC:SP:232 D83949

CATEGORY: CLASSIFICATION

TARIFF NO.: 1704.10.0000; 1704.90.3550; 9503.90.0045

Ms. San Juanita Mendoza
Camel Services Inc.
P.O. Box 3252
1909 Aduanales
Laredo, Texas 78044-3252

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of "Pop Shots" from Mexico; Article 509

Dear Ms. Mendoza:

In your letter dated October 20, 1998, on behalf of Richardson Brands Co., you requested a ruling on the status of "Pop Shots" from Mexico under the NAFTA. Your request also asks for the country of origin for marking purposes of the product.

The subject merchandise consists of a miniature plastic baseball bat, which is designed to allow the two halves of the bat to be opened and closed. The inside of the bat contains a piece of bubble gum and a lollipop. The bubble gum is wrapped in paper and the ingredients listed include sugar, glucose syrup, gum base, artificial flavor, citric acid, glycerine and artificial colors. The lollipop is wrapped in a clear plastic with no ingredients listed. Note that for the purposes of this ruling, it is assumed that the lollipop contains sugar, but no cocoa. Once the bubble gum and lollipop have been consumed, the plastic bat may be used as a toy.

You indicate that the plastic bat is produced in China and imported into Mexico, where it is assembled with the Mexican made bubble gum and lollipop and then shipped to the United States.

The applicable tariff provision for the plastic miniature bat will be 9503.90.0045, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other toys: other: other toys and models. The rate of duty will be free.

The applicable tariff provision for the bubble gum will be 1704.10.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Sugar confectionery...not containing cocoa: chewing gum, whether or not sugar-coated. The general rate of duty will be 4.3 percent ad valorem.

The applicable subheading for the lollipop will be 1704.90.3550, Harmonized Tariff Schedule of the United States (HTS), which provides for Sugar confectionery... not containing cocoa...other: confections or sweetmeats ready for consumption...other...other...put up for retail sale...other. The general rate of duty will be 6.1 percent ad valorem.

The bubble gum and the lollipop, being wholly obtained or produced entirely in the territory of Mexico, 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 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., and on the country of origin for duty and quota allocation purposes. 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 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 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.

You state that the "Pop Shots" are processed in a NAFTA country "Mexico" prior to being imported into the U.S. Since, "Mexico" 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 powdered drink crystals 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 bubble gum and lollipop are goods of "Mexico" for marking purposes, since they satisfy the requirements of Section 102.11(a)(1). Therefore, they may be marked "Gum and Candy Made In Mexico" for Customs 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 miniature plastic bat is a product of "China" for marking purposes, since the plastic bat does not undergo an applicable tariff shift pursuant to 102.11(a)(3). Therefore, the miniature plastic bat may be marked "Made in China" for Customs marking purposes.

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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