CLA-2-21:RR:NC:2:228 K80306
Ms. Shirley Coffield
Coffieldlaw
666 Eleventh Avenue N.W.
Washington, DC 20001
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), and country of origin marking of a sugar and gelatin blend from a Foreign Trade Zone; Article 509
Dear Ms. Coffield:
In your letter dated October 15, 2003, on behalf of Streamline Foods, Inc., 6018 West Maple Road, West Bloomfield, MI, you requested a ruling on the status of a sugar and gelatin blend produced in a Foreign Trade Zone (FTZ) in Toledo, OH, under the NAFTA.
Samples, submitted with your letter, were examined and disposed of. The merchandise is described as a blend of 94 percent sugar and 6 percent gelatin. Examination of the sample found the product to be of a fine granulation, with the sugar and gelatin particles virtually indistinguishable. The sugar will be a product of Brazil, Australia, or another non-NAFTA country, and the gelatin may be a product of the United States or Brazil. The sugar and gelatin blend imported from the FTZ will be used by food processors, who will add flavorings, colors, preservatives, salt, and sodium citrate to make a retail-packaged gelatin dessert mix.
The applicable tariff provision for the sugar and gelatin blend will be 2106.90.5870, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for food preparations not elsewhere specified or included...other...of gelatin...other...containing sugar derived from sugar cane or sugar beets. The general rate of duty will be 4.8 percent ad valorem.
Each of the non-originating materials used to make the sugar and gelatin blend has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21.14. The sugar and gelatin blend will 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 sugar and gelatin blend is a good of the United States for marking purposes. Products of the United States are not subject to the country of origin marking requirements of 19 U.S.C. 1304.
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,
National Commodity
Specialist Division