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 > 2003 NY Rulings > NY J84444 - NY J84495 > NY J84480

Previous Ruling Next Ruling
NY J84480




June 5, 2003

CLA-2-21:RR:NC:2:228 J84480

CATEGORY: CLASSIFICATION

TARIFF NO.: 2106.90.6400; 2106.90.6600

Mr. Randy Schreiber
Impression Foods, Inc.
6300 N. Sagewood Dr.
Park City, UT 84098

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

Dear Mr. Schreiber:

In your letter dated May 14, 2003 you requested a ruling on the status of a “natural coloring blend” from Mexico under the NAFTA.

The product is described as a blend of anhydrous butter oil and beta carotene. The composition of the blend will vary according to customer requirements, but it will contain a minimum of 97 percent butter oil and a maximum of 3 percent beta carotene, with lesser amounts of d1-alpha tocopherol added as an anti-oxidant. The blend will be packed in bulk 210-kilogram drums or 900-kilogram totes, and used as an ingredient in the manufacture of margarine, popcorn flavorings, salad dressings, and other food products.

The butter oil may be a product of the United States, Canada, Argentina, Australia, New Zealand, or Uruguay. The beta carotene will be a product of Australia. Your letter does not identify the country of origin of the d1-alpha tocopherol. Processing in Mexico involves blending according to customer specifications and packaging.

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, for marking purposes, the imported butter oil and beta carotene blend is a good of the United States, Canada, New Zealand, Argentina, Australia, or Uruguay, i.e., the country of origin of the butter oil ingredient.

The applicable subheading for the butter oil/beta carotene blend, when made with butter oil from Canada, New Zealand, Argentina, Australia, or Uruguay, and if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 2106.90.6400, Harmonized Tariff Schedule of the United States (HTS), which provides for food preparations not elsewhere specified or included otherothercontaining over 10 percent by weight of milk solidsother, dairy products described in additional U.S. note 1 to chapter 4described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions. The rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 10 to chapter 4 have been reached, the product will be classified in subheading 2106.90.6600, HTS, and dutiable at the rate of 70.4 cents per kilogram plus 8.5 percent ad valorem. In addition, when produced with butter oil from Argentina, Australia, New Zealand, and Uruguay, and classified in subheading 2106.90.6600, HTS, the blend will be subject to additional duties based on its value, as described in subheadings 9904.04.59 to 9904.04.66, HTS

The applicable subheading for the butter oil/beta carotene blend, when made with butter oil from the United States, will be 2106.90.6600, HTS, which provides for food preparations not elsewhere specified or includedother othercontaining over 10 percent by weight of milk solidsother, dairy products described in additional U.S. note 1 to chapter 4other. The rate of duty will be 70.4 cents per kilogram plus 8.5 percent ad valorem.

When made with butter oil from Argentina, Australia, New Zealand, or Uruguay, the blend will not qualify for preferential treatment under the NAFTA because one of the non-originating materials used in the production of the good (the butter oil) will not undergo the change in tariff classification required by General Note 12(t)/21.12, HTSUSA.

When made with butter oil from Canada, the non-originating material used to make the blend (the beta carotene) has satisfied the change in tariff classification required under HTSUSA General Note 12(t)/21.12. The blend, when classified in subheading 2106.90.6400, HTS, 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 oil from the United States, the non-originating material used to make the blend (the beta carotene) has satisfied the change in tariff classification required under HTSUSA General Note 12(t)/21.12. The blend, classified in subheading 2106.90.6600, HTS, 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.

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: