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NY E88527





November 2, 1999

CLA-2-18:RR:NC:SP:232 E88527

CATEGORY: CLASSIFICATION

TARIFF NO.: 1701.91.5400; 1701.91.5800

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 a lemon drink mix from Canada; Article 509

Dear Mr. Mines:

In your letter dated October 1, 1999, on behalf of Redpath Sugars, you requested a ruling on the status of a lemon drink mix from Canada under the NAFTA. Your request also asks for the country of origin for marking purposes of the product.

The subject merchandise is stated to contains 92 percent sugar, 6 percent citric acid, and 2 percent flavors and colorings. The raw sugar may be produced in Australia, Brazil, Guatemala, South Africa or Columbia, and refined in Canada. The citric acid, flavors and colorings are products of the United States or Canada. The lemon drink mix will be produced in Canada and shipped to the United States in 612 gram finished packages. It will be sold at retail and wholesale in cases of 12 packages. The applicable tariff provision for the lemon drink mix, if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 1701.91.5400 Harmonized Tariff Schedules of the United States (HTS), which provides for cane or beet sugar and chemically pure sucrose in solid form: other...containing added flavoring matter whether or not containing added coloring...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 general rate of duty will be 6 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 1701.91.5800, HTS, and dutiable at the rate of 34.9 cents per kilogram plus 5.2 percent ad valorem. In addition, items classified under subheading 1701.91.5800, HTS, which are not products of Canada, will be subject to additional duties based on their value as described in subheadings 9904.17.49 to 9904.17.56, HTS.

The lemon drink mix will not qualify for preferential treatment under the NAFTA because the non-originating raw sugar used in the production of the good will not undergo the change in tariff classification required by General Note 12(t)/17, HTSUSA.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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 imported articles which are 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.

The imported lemon drink mix 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 imported lemon drink mix 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 lemon drink mix is a good of the countries where the raw sugar is grown, noting Section 102.11(b)(1).

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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.

Sincerely,

Robert B. Swierupski
Director,

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