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 > 2008 NY Rulings > NY N025151 - NY N025242 > NY N025236

Previous Ruling Next Ruling
NY N025236




March 28, 2008

CLA-2-21:OT:RR:NC:N2:228

CATEGORY: CLASSIFICATION

TARIFF NO.: 2103.90.7400; 2103.90.7800

Ms. Tanis Johnson
Newly Weds Foods, Co.
450 Superior Blvd.
Mississauga, Ontario L5T 2R9 Canada

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

Dear Ms. Johnson:

In your letters dated March 6, 2008 and March 13, 2008 you requested a ruling on the status of a seasoning from Canada under the NAFTA.

An ingredients breakdown was provided with your first letter; additional information and a sample was submitted with your second letter. The sample was examined and disposed of. Salsa Ranch Dip is a red-orange powder containing red, white, and green-colored particles. The dip mix will be used to create a dipping sauce, after mixing with sour cream. The product is said to be composed of approximately 16 percent buttermilk powder, 15 percent minced onion, 13 percent each of salt and sugar, 9 percent onion powder, 5 percent each of red bell pepper, green bell pepper, garlic powder, and tomato powder, 3 percent parsley, 2 percent each of ground jalapeno pepper, paprika, and lime juice powder, and one percent or less, each, of xanthan gum, citric acid, cilantro flakes, green bell pepper flavoring, artificial tomato flavor, soy oil, silicon dioxide, oleo paprika, and oleo capsicum.

The salt, sugar, green bell pepper flavor, and buttermilk powder ingredients will be products of Canada. The onion powder, lime juice powder, tomato flavor, ground jalapeno, and minced onion will be products of the United States, and the soy oil may be a good of the United States or Canada. The garlic powder, citric acid, green bell pepper, and red bell pepper, will be products of China, the oleo paprika, oleo capsicum, and xanthan gum will be products of India, the granulated parsley and cilantro flakes will be goods of Israel, silicon dioxide will be a product of the Netherlands, and the tomato powder will be a good of Switzerland. In Canada, all ingredients will be combined according to the prescribed formula, and packed into 28-gram packages.

The applicable subheading for this product, if imported in quantities that fall within the limits described in additional U.S. note 4 to chapter 21, will be 2103.90.7400, Harmonized Tariff Schedule of the United States (HTSUS), which provides for mixed condiments and mixed seasonings described in additional U.S. note 3 to this chapter...described in additional U.S. note 4 to this chapter and entered pursuant to its provisions. The rate of duty will be 7.5 percent ad valorem. If the quantitative limits of additional U.S. note 4 to chapter 21 have been reached, the product will be classified in subheading 2103.90.7800 HTS, and dutiable at the rate of 30.5 cents per kilogram plus 6.4 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

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. ยง 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 Salsa Ranch Dip described above, when classified in subheading 2103.90.7400, HTSUS, will qualify for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(ii)(A)/21.7A(A). It will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.

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 Salsa Ranch Dip 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: