CLA-2-20:OT:RR:E:NC:N2:228
Mr. James Corpstein
J.R. Simplot Company
P.O. Box 27
Boise, ID 83707-0027
RE: The tariff classification, country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of seasoned apples and sweet potatoes from Mexico; Article 509
Dear Mr. Corpstein:
In your letters dated June 30, 2009, and July 28, 2009, you requested a ruling on the status of prepared fruit and vegetable from Canada under the NAFTA.
An ingredients breakdown and pictures of the products were submitted with your first letter. A description of the manufacturing process accompanied your second letter. The imported products are Roast Works brand Flame-Roasted Sweet Potatoes with Maple Seasoning and Flame-Roasted Fuji Apples. The sweet potatoes and Fuji apples are grown, peeled, diced (sweet potatoes) or cut into wedges (apples), roasted, frozen, and packed in 1000-lb totes in the United States. The seasoning, consisting of sugar, modified corn starch, salt, cinnamon, caramel color, spice, ascorbic acid, and citric acid, is mixed and packed in the United States. The prepared sweet potatoes, apples, and seasoning are exported to Mexico. In Mexico, the seasoning is applied to the sweet potatoes and apples and packed in 2.5-lb poly bags, 6 bags to a carton. The seasoned sweet potato product and seasoned apples will be sold to customers in the food service industry.
The applicable tariff provision for the Flame-Roasted Fuji Apples will be 2008.99.0500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included…other, including mixtures other than those of subheading 2008.19…other…apples. The general rate of duty will be 0.9 cents per kilogram.
The applicable tariff provision for the Flame-Roasted Sweet Potatoes with Maple Seasoning will be 2008.99.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included…other, including mixtures other than those of subheading 2008.19…other…other. The general rate of duty will be 6 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. § 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 Flame-Roasted Sweet Potatoes with Maple Seasoning and the Flame-Roasted Fuji Apples described above qualify for NAFTA preferential treatment, because they meet the requirements of HTSUS General Note 12(b)(i). The products will therefore be entitled to free rates 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 Flame-Roasted Sweet Potatoes with Maple Seasoning and Flame-Roasted Fuji Apples are goods of the United States for marking purposes.
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.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177) and 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
National Commodity Specialist Division