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NY I82541




June 5, 2002

CLA-2-17:RR:NC:SP:232 I82541

CATEGORY: CLASSIFICATION

TARIFF NO.: 1701.99.1000; 1701.99.5000

Mr. Graeme R Honeyfield
Glinso Foods
3554 Round Barn Blvd., Ste. 310
Santa Rosa, CA 95403

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of SF 9955A Blend from Mexico; Article 509

Dear Mr. Honeyfield:

In your letter dated May 21, 2002 you requested a ruling on the status of SF 9955A Blend from Mexico under the NAFTA.

A sample was submitted with your letter dated May 28, 2002.. The SF 9955A Blend is stated to contain 99.5 percent refined cane or beet sugar (polarity 99.7) and 0.5 percent apple flavoring. After importation, the blend will be combined with 20 percent to 50 percent corn syrup, up to 55 percent sugar, up to 10 percent hydrogenated vegetable oil and small quantities of stabilizer, color and flavor. The merchandise will be used in the production of confectionery products. It will be imported in 25 kilogram bags, 500 to 1000 kilogram bulk sacks or bulk transportation. The sugar in the blend will be grown and refined either in the United States or Mexico. The flavoring in the blend will be produced in the United States or Mexico. The ingredients will be blended into the imported product in Mexico. It is noted that an organoleptic test of the subject merchandise did not detect an apple flavor.

The applicable subheading for the SF 9955A Blend, if described in additional U.S. note 5 to chapter 17 and entered pursuant to its provisions, will be 1701.99.1000, Harmonized Tariff Schedule of the United States (HTS), which provides for cane or beet sugar and chemically pure sucrose, in solid form: other. The general rate of duty will be 3.6606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.99.5000, HTS. The general duty rate will be 35.74 cents per kilogram. In addition, except for goods of Canada or Mexico, products classified under subheading 1701.99.5000, HTS, will be subject to additional duties based on their value as described in subheadings 9904.17.08 to 9904.17.15, HTS.

The SF 9955A Blend, being wholly obtained or produced entirely in the territory of Mexico and the United States will meet the requirements of HTSUSA General Note 12(b)(i). If classified under subheading 1701.99.1000, HTS, the SF9955A Blend will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. If classified under subheading 1701.99.5000, HTS, and a product of Mexico, the SF 9955A Blend will be dutiable at the rate of 21.185 cents per kilogram less 0.3 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 13.692 cents per kilogram under the NAFTA upon compliance with all applicable laws, regulations and agreements.

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. 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 SF 9955A Blend is processed in a NAFTA country "Mexico" prior to being imported into the U.S. Since, "Mexico" 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 SF 9955A Blend 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 presented, we find that the country of origin for marking purposes of the imported SF 9955A Blend is the country where the sugar is grown and refined (United States or Mexico), noting Section 102.11(b)(1).

Noting Section 102.19(b) of the regulations, when the sugar is grown and refined in the United States, making the U.S. the country of origin for marking purposes, the country of origin of the SF 9955A Blend for Customs duty purposes and for the quota allocation is “Mexico.”

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 John Maria at 646-733-3031.

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,

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