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NY I84069





November 27, 2002

CLA-2-21:RR:NC:2:228 I84069

CATEGORY: CLASSIFICATION

TARIFF NO.: 2106.90.9700, 2106.90.9997, 9906.21.50, 9906.21.51, 9906.21.52

Mr. Clark D. Bien
Streamline Foods, Inc.
6018 West Maple Rd.
Suite 888
West Bloomfield, MI 48322-4404

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

Dear Mr. Bien:

In your letter dated June 26, 2002, you requested a ruling on the status of syrups from Mexico under the NAFTA.

Samples and ingredients breakdowns were submitted with your letter. The samples were forwarded to the United States Customs laboratory for analysis. The products are blends of honey and sugar syrup used in the manufacture of breakfast cereals, baked goods, and a variety of other food products. Syrup I is said to contain 55.2 percent sucrose syrup and 44.8 percent honey. Syrup II contains 51 percent sucrose syrup and 49 percent honey. Syrup III contains 7 percent sucrose syrup and 93 percent honey. Syrup IV contains 6 percent sucrose syrup and 94 percent honey. Based upon the information provided, the percentage of cane sugar contained in the products ranges between 5 and 51 percent, on a dry weight basis.

The sugar is a product of Mexico. The honey may be a product of the United States, Mexico, Argentina, or China. In Mexico the two components will be mixed together and packaged in bulk tank trucks, tank containers, one-ton pallet tanks, 5-gallon plastic pails, and 55-gallon drums.

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 134.1(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.

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 syrups are goods of Mexico for marking purposes.

The applicable subheading for Syrup I and Syrup II will be 2106.90.9700, HTS, which provides for food preparations not elsewhere specified or includedotherarticles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17other. The general rate of duty will be 28.8 cents per kilogram plus 8.5 percent ad valorem. The applicable subheading for Syrup III and Syrup IV will be 2106.90.9997, HTS, which provides for food preparations not elsewhere specified or includedotherotherothercontaining sugar derived from sugar cane and/or sugar beets. The general rate of duty will be 6.4 percent ad valorem.

Syrup I and Syrup II, goods of Mexico, classified in subheading 2106.90.9700, HTS, and made with honey from the United States and/or Mexico, being wholly obtained or produced entirely in the territory of the United States and Mexico, will meet the requirements of HTS General Note 12(b)(i). When made with honey from Argentina and/or China, the non-originating materials will have satisfied the changes in tariff classification required under HTS General Note 12(t)/21.14. When entered under the terms of HTS General Note 12, and imported in quantities that fall within the quantitative limits described in note 12 to subchapter VI of chapter 99, HTS, syrups I and II will be free of duty pursuant to subheading 9906.21.50, HTS. If the quantitative limits of note 12 to subchapter VI of chapter 99 have been reached, and if the syrups are valued not over 74.8 cents per kilogram, they will be dutiable at the rate of 7 cents per kilogram, in subheading 9906.21.51, HTS. If valued over 74.8 cents per kilogram the rate of duty will be 9.4 percent ad valorem, pursuant to subheading 9906.21.52, HTS.

Syrups III and IV, classified in subheading in 2106.90.9997, HTS, and made with honey from the United States and/or Mexico, being wholly obtained or produced entirely in the territory of the United States and Mexico, will meet the requirements of HTS General Note 12(b)(i). When made with honey from Argentina and/or China, the non-originating materials will have satisfied the changes in tariff classification required under HTS General Note 12(t)/21.14. Syrups III and IV will be entitled to a free rate of duty under the NAFTA 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.

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.

Sincerely,

Robert B. Swierupski
Director,

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