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February 26, 1999

CLA-2-17:RR:NC:SP:232 D87837

CATEGORY: CLASSIFICATION

TARIFF NO.: 1701.99.5000

Mr. J. Berrios
Commodity Specilaists Company
36 Grove Street
New Canaan, CT. 06840

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

Dear Mr. Berrios:

In your letter dated February 4, 1999 you requested a ruling on the status of sugar from Canada under the NAFTA. Your request also asks for the country of origin for marking purposes of the product.

The subject merchandise is described as white refined sugar with a minimum polarity of 99.8 degrees, which has been produced in Mexico. The sugar is packaged in 50 kilogram bags, and shipped to Canada, where it will be repackaged into 2 kilogram boxes for import into the United States. The sugar will be shipped to the United States without a Certificate of Quota Eligibility.

The applicable tariff provision for the white refined sugar will be 1701.99.5000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for cane or beet sugar and chemically pure sucrose in solid form...other...other ...other. The general rate of duty will be 36.79 cents per kilogram.

The merchandise qualifies for preferential treatment under the NAFTA because the sugar being wholly obtained or produced entirely in the territory of Mexico and Canada will meet the requirements of HTSUSA General Note 12(b)(i). However, since a Certificate of Quota Eligibility will not be submitted with this shipment, the sugar will be entitled to a 31.778 cents per kilogram less 0.45 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 20.537 cents per kilogram rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

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 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 imported white refined sugar 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 white refined sugar is a good 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 white refined sugar is a good of “Mexico” for marking purposes, noting the requirements of Sections 102.17(c)and 102.11 (b)(1). Therefore, the imported sugar must be marked “Product of Mexico”, when imported into the United States.

Sugar classifiable under subheading 1701.99.5000, HTS, is subject to import requirements of the United States Department of Agriculture. Inquiries on sugar import requirements should be made directly to:

United States Department of Agriculture
Foreign Agricultural Service Import Policies & Programs Div. 14th Street & Independence Ave.
Washington, D.C. 20250-1000

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 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 212-637-7059.

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, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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