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 > 1999 NY Rulings > NY D88010 - NY D88064 > NY D88027

Previous Ruling Next Ruling


April 21, 1999

CLA-2-19:RR:NC:2:228 D88027

CATEGORY: CLASSIFICATION

TARIFF NO.: 1901.90.1000

Mr. Robert Demers
Mr. Paul Allen
Deloitte & Touche
1 Place Ville-Marie
Suite 3000
Montreal Canada QC H3B 4T9

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

Dear Mr. Demers and Mr. Allen:

In your letters dated February 2, 1999, and March 10, 1999, on behalf of Mosti Mondiale Inc., Canada, you requested a ruling on the status of beer kits from Canada under the NAFTA.

A copy of a brochure describing the Tundra Complete Home Brewing Kit was submitted with your first letter. The kit consists of a plastic bag containing wort (malt extract, dextrose, and hops), pre-measured packages of yeast and priming sugar, and an instruction sheet. The dextrose, sugar, yeast, and instruction sheet are products of Canada. The malt extract and hops are products of the United States. The malt extract, dextrose and hops are mixed into a wort and packaged in Canada. The beer kits will be put up for retail sale and used to produce ale, pale ale, red ale and lager.

The applicable tariff provision for the beer kits will be 1901.90.1000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for malt extract...other malt extract...fluid. The general rate of duty will be 3.5 cents per liter.

The beer kits, being wholly obtained or produced entirely in the territory of Canada and the United States, will satisfy the requirements of HTSUSA General Note 12(b)(i). The beer kits will therefore 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 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 interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).

Section 134.1(b) of the interim 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 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 interim 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 interim 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 interim 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.

Part 102 of the interim 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 interim 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 interim regulations to the facts of this case, we find that the imported beer making kit is a good of Canada and the United States for marking purposes. Since articles of United States origin are not subject to the requirements of 19 U.S.C. 1304, the beer kits would only be required to show “Canada” as the country of origin.

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.

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 Stanley Hopard at 212-637-7065.

Sincerely,

Robert B. Swierupski
Director,
National Commodity

Previous Ruling Next Ruling

See also: