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NY G83597





November 17, 2000

CLA-2-21:RR:NC:SP:232 G83597

CATEGORY: CLASSIFICATION

TARIFF NO.: 2101.20.5800

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 an Ice Tea Drink Mix from Canada; Article 509

Dear Mr. Mines:

In your letter dated October 20, 2000, on behalf of Redpath Sugars, a division of Tate and Lyle American Sugars, Ltd., you requested a ruling on the status of an ice tea drink mix from Canada under the NAFTA. Your request also asks for the country of origin for marking purposes and for tariff rate quota allocation purposes.

Additional information was submitted in your fax dated November 10, 2000 The subject merchandise is stated to contain 96.6 percent sugar, 2.6 percent citric acid and various quantities of tea powder, caramel flavors, lemon flavor, tricalcium phosphate and color. You indicate that the tea powder, which is instant tea, is produced in the United States from tea leaves from either Argentina, Indonesia or China. The sugar is a product of Mexico, and the lemon flavor is a product of the United States or Canada. The balance of ingredients are produced in the United States. All of the ingredients will be blended in Mexico to produce the ice tea drink mix. The product will be packaged in one ton tote bags and shipped in bond from Mexico through the United States into Canada. The ice tea mix will be packaged into retail canisters in Canada and then returned to the United States.

The applicable tariff provision for the ice tea drink mix will be 2101.20.5800, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or mate...other. The general rate of duty will be 30.5 cents per kilogram plus 8.5 percent ad valorem

The ice tea drink mix, being made entirely in the territory of Canada, Mexico and the United States, using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). Goods of Mexico, classifiable in subheading 2101.20.5800 entered under the terms of general note 12 of the Harmonized Tariff Schedule of the United States, and imported in quantities that fall within the quantitative limits described in note 20 to subchapter 6 of chapter 99, HTS, will be free of duty pursuant to subheading 9906.21.07. If the quantitative limits of note 20 to subchapter 6 of chapter 99 have been reached, and if the product is valued not over 28.3 cents per kilogram, it will be dutiable at the rate of 10.2 cents per kilogram in subheading 9906.21.08, HTS. If valued over 28.3 cents per kilogram, the rate of duty will be 36.1 percent ad valorem, pursuant to subheading 9906.21.09, HTS, 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 imported ice tea drink mix is processed in NAFTA countries "Mexico" and “Canada” prior to being imported into the U.S. Since, "Mexico" and “Canada” are defined under 19 CFR 134.1(g), as NAFTA countries, we must first apply the NAFTA Marking Rules in order to determine whether the imported ice tea 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 imported ice tea drink mix is a good of the "United States" for marking purposes, since it satisfies the requirements of Section 102.11(b)(1). Therefore, it is not required to be marked with the country of origin for Customs marking purposes.

Noting Section 102.17(c) the retail packaging in Canada does not cause the ice tea drink mix to undergo the applicable change in tariff classification specified in Section 102.20.

Noting Section 102.19(b)of the regulations, the last NAFTA country in which the good was advanced in value or improved in condition is Mexico. Therefore, the country of origin of the ice tea drink mix for Customs duty purposes and for the tariff rate quota allocation is Mexico.

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.

Sincerely,

Robert B. Swierupski
Director,

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