CLA-2-17:RR:NC:SP:232 B83306

Mr. Robert V. Tinkham
Chicago Sweeteners Incorporated
1700 Higgins Road
Suite 610
Des Plaines, Illinois 60018

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of powdered drink mixes from Mexico; Article 509

Dear Mr. Tinkham:

In your letter dated March 12, 1997, you requested a ruling on the status of powdered drink mixes from Mexico under the NAFTA.

The subject merchandise is described as powdered drink mixes in the flavors of orange, lemon, cherry, punch and grape. The products are stated to contain between 75 and 90 percent granulated sugar, 0 and 18 percent dry fructose, and 4 and 10 percent citric acid, malic acid, sorbic acid, silicon dioxide, flavorings and colors. The sugar will be from a non-Nafta country such as Australia and sent to the United States for refining. The remaining ingredients may or may not be from a Nafta country. All of the ingredients are sent to Mexico, where they will be blended into the finished drink mixes, packaged in 2,000 pound sacks and shipped to the United States for retail packaging.

The applicable tariff provision for the powdered drink mixes, if imported in quantities that fall within the limits described in additional U.S. note 8 to chapter 17, will be 1701.91.5400 Harmonized Tariff Schedules of the United States (HTS), which provides for cane or beet sugar and chemically pure sucrose in solid form: other...containing added flavoring matter whether or not containing added coloring...articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17...described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The general rate of duty will be 6 percent ad valorem. If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 1701.91.5800, HTS, and dutiable at the rate of 36.9 cents per kilogram plus 5.6 percent ad valorem.

The merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/17, HTSUSA.

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 John Maria at 212-466-5730.

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, 1301 Constitution Ave., NW, Franklin Court, Washington, DC 20229.

Sincerely,

Gwenn Klein Kirschner
Chief, Special Products
National Commodity
Specialist Division