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 > 2004 NY Rulings > NY K87300 - NY K87349 > NY K87304

Previous Ruling Next Ruling
NY K87304





July 9, 2004

CLA-2-21:RR:NC:2:228 K87304

CATEGORY: CLASSIFICATION

TARIFF NO.: 2106.90.9972

Mr. David Dunbar
KMZ Rosenman
525c West Monroe Street
Chicago, IL 60661-3693

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a food ingredient from Canada; Article 509

Dear Mr. Dunbar:

In your letter dated June 24, 2004, on behalf of Kerry Inc., Beloit, WI, you requested a ruling on the status of a food product from Canada under the NAFTA.

An ingredients breakdown accompanied your letter. The product is identified as a “liquid alcohol creamer,” used as an ingredient in the production of alcoholic beverages. The product is said to be composed of water, coconut oil, sucrose (less than 10 percent, by dry weight), undenatured ethyl alcohol (less than 20 percent, by weight), sweetener (consisting of maltodextrin and/or corn syrup solids, and/or glucose solids, and/or high fructose corn syrup solids, and/or dextrose), sodium caseinate, mono & diglycerides and/or distilled monoglycerides, sodium citrate and/or dipotassium phosphate and/or sodium hydroxide, cellulose gum and/or cellulose gel, sodium stearoyl lactylate, and carrageenan. It will be imported in tank trucks.

The sweetener and the ethyl alcohol may be products of the United States, Canada, or Mexico. The sucrose may be a product of Canada, Mexico, or a non-NAFTA country. The mono and diglycerides, sodium citrate, dipotassium phosphate, and sodium hydroxide may be goods of the United States, Canada, or a non-NAFTA country. The cellulose gum, cellulose gel, sodium stearoyl lactylate, and carrageenan may be products of the United States or a non-NAFTA country, and the coconut oil and sodium caseinate will be products of non-NAFTA countries. In Canada, the ingredients will be mixed together according to the prescribed formula, pasteurized, homogenized, cooled, and packaged.

The applicable tariff provision for the liquid alcohol creamer will be 2106.90.9972, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for food preparations not elsewhere specified or includedotherotherotherpreparations for the manufacture of beveragescontaining sugar derived from sugar cane and/or sugar beets. The general rate of duty will be 6.4 percent ad valorem.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein

Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(ii)(A) and 12(t)/21.14. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

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 liquid alcohol creamer 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).

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,

Previous Ruling Next Ruling

See also: