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 > 2002 NY Rulings > NY H87022 - NY H87069 > NY H87061

Previous Ruling Next Ruling
NY H87061





January 15, 2002

CLA-2-21:RR:NC:2:228 H87061

CATEGORY: CLASSIFICATION

TARIFF NO.: 2106.90.2800

Mr. David M. Dunbar
Katten Muchin Zavis
525 West Monroe Street
Chicago, IL 60661-3693

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

Dear Mr. Dunbar:

In your letters dated January 4, 2002, August 31, 2001, and August 9, 2001, on behalf of Kerry Inc., Beloit, WI, you requested a ruling on the status of a butter blend from Canada under the NAFTA.

The product, described as a “butter blend,” is said to be a water-in-oil emulsion with a smooth plastic consistency, imported in 50-pound plastic-lined boxes, used by commercial bakeries as a butter substitute. The butter blend will be composed of between 48 and 52 percent butter (80-82 percent butterfat), 38 to 42 percent vegetable oil shortening, and 6 to 10 percent water. In addition, depending on customer requirements, the blend may also contain less than 3 percent each of salt, milk solids, color, flavor, Vitamin A Palmitate, and Vitamin E. Regardless of how the product may be formulated within these ranges, the butterfat content of the blend will be no less than 38.4 percent and no more than 42.6 percent, the total fat content will range from a minimum of 80 percent to a maximum of 82 percent, and the moisture content from 14 percent to 18 percent.

The butter and milk solids ingredients may be products of Australia, Canada, France, Ireland, Netherlands, New Zealand, the United Kingdom, or the United States. The vegetable oil shortening, salt, color, and flavor ingredients may be products of Canada or the United States. The Vitamin A Palmitate may be a good of Canada, Germany, or the United States, and the Vitamin E may originate in Canada, Switzerland, or the United States.

The applicable tariff provision for the butter blend will be 2016.90.2800, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for food preparations not elsewhere specified or includedbutter substitutes, whether in liquid or solid state, containing over 15 percent by weight of butter or other fats or oils derived from milk containing over 10 percent by weight of milk solidsother. The general rate of duty will be 13.1 cents per kilogram.

The butter blend, when produced in Canada entirely from ingredients whose origin is the United States and/or Canada, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

When produced using butter, milk solids, vegetable oil shortening, salt, color, and flavor ingredients from the United States and/or Canada, and using either Vitamin A Palmitate from Germany or Vitamin E from Switzerland, the non-originating materials (Vitamin A Palmitate and/or Vitamin E) will satisfy the changes in tariff classification required under HTSUSA General Note 12(t)/21.12. The butter blend will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

When made with butter and milk solids ingredients whose origin is Australia, France, Ireland, Netherlands, New Zealand, or the United Kingdom, the butter blend will not qualify for preferential treatment under the NAFTA because the non-originating materials used in the production of the good (the butter and/or milk solids) will not undergo the change in tariff classification required by General Note 12(t)/21.12, HTSUSA.

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 to 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.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported butter blend is a good of 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 646-733-3029.

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,

Previous Ruling Next Ruling

See also: