NY D89931 - The tariff classification, country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of a food ingredient from Canada; Article 509 - United States International Trade Commision Rulings

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April 14, 1999

CLA-2-21:RR:NC:2:228 D89931

CATEGORY: CLASSIFICATION

TARIFF NO.: 2106.90.9500; 2106.90.9700

Mr. Patrick E. Mines
P. Mines Customs Services
P.O. Box 1197
Fort Erie, Ontario L2A 5Y2 Canada

RE: The tariff classification, country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of a food ingredient from Canada; Article 509

Dear Mr. Mines:

In your letter dated March 27, 1999, on behalf of Western Basic Ingredients, Coquitlam, B.C., Canada, you requested a tariff classification and country of origin marking ruling for a mixture of sugar and sorbitol from Canada under the NAFTA.

A sample, submitted with your letter, was examined and disposed of. The product is a white, granular product, said to be composed of 54.5 percent sugar and 45.5 percent sorbitol, used as an ingredient in processing fish. The sugar is a product of Australia and the sorbitol is of Indonesian origin. The ingredients are mixed together in Canada, and packaged in one-ton totes or 24.5-pound bags.

The applicable subheading for the sugar and sorbitol mixture, if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 2106.90.9500 Harmonized Tariff Schedules of the United States (HTS), which provides for food preparations not elsewhere specified or included...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 2106.90.9700, HTS, and dutiable at the rate of 29.6 cents per kilogram plus 8.8 percent ad valorem.

Each of the non-originating materials used to make the sugar and sorbitol mixture has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21.14. The product, when classified in 2106.90.9500, HTS, will 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 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.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

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 sugar and sorbitol mixture is a good of a Canada for marking purposes.

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,

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