CLA-2-17:OT:RR:NC:N4:232
Daniel E. Waltz
Squire Patton Boggs (US) LLP
2550 M Street, NW
Washington, D.C. 20037
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of liquid sugar products from Canada; Article 509
Dear Mr. Waltz:
In your letter dated November 23, 2015, on behalf of Redpath Sugar, you requested a ruling on the status of liquid sugar products from Canada under the NAFTA. Two liquid sugar samples and descriptive literature were submitted along with your request. The samples were submitted to the Customs Laboratory for analysis. The Laboratory has now completed its analysis of these products.
The subject matter consists of two types of liquid sugar produced in Canada. Pure Cane Classic Syrup (Lower Brix Formula) is said to contain 81.481 percent liquid sucrose #1, 18.439 percent filtered water, and 0.04 percent potassium sorbate and 0.04 percent citric acid. The liquid sugar consists of raw cane sugar originating in Mexico, Brazil, Guatemala, Costa Rica, Honduras, El Salvador or Nicaragua and is refined in Canada. The potassium sorbate is a product of China and the citric acid is a product of Brazil. Pure Cane Classic Syrup (Higher Brix Formula) is said to contain 77.185 percent liquid sucrose #1, 20 percent medium invert syrup, 2.81 percent filtered water, 0.004 percent potassium sorbate and 0.002 percent citric acid.
The liquid sugar consists of raw cane sugar originating in Mexico, Brazil, Guatemala, Costa Rica, Honduras, El Salvador or Nicaragua and is refined in Canada. The medium invert syrup is a product of the United States. The potassium sorbate is a product of China and the citric acid is a product of Brazil.
The syrups will not be further processed upon arrival in the United States (they will not be incorporated in another product in the United States or further refined). They will be shipped packaged (not in bulk). There will be two bottle sizes (750 ml and 375 ml). The syrups (in both sizes) will be sold to food service industry and the retail market. These syrups will be used for beverage sweetening (e.g. coffee, teas). They will be sold in pump dispensers and the consumer will add the flavored syrups to the beverage of the consumer’s choice.
According to Customs Laboratory Report no. NY20152232, dated May 13, 2016, Pure Cane Classic Syrup (Lower Brix Formula) “contains a clear, low viscosity liquid. The sample has a moisture content of 45.2 percent, and a sugar content on a dry basis of 1.6 percent fructose, 3.1 percent glucose and 87.2 percent sucrose. No flavoring, coloring compound or non-sugar soluble solids were detected.” Pure Cane Classic Syrup (Higher Brix Formula) “contains a viscous yellow colored liquid. The sample has a moisture content of 33.536 percent, and a sugar content on a dry basis of 6.6 percent fructose, 6.6 percent glucose and 85.0 percent sucrose. No flavorings, coloring compound or non-sugar solids were detected.”
The applicable tariff provision for the Pure Cane Classic Syrup (Lower Brix Formula) and the Pure Cane Classic Syrup (Higher Brix Formula) will be 1702.90.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavoring or coloring matter; artificial honey, whether or not mixed with natural honey; caramel: Other, including invert sugar and other sugar and sugar syrup blends containing in the dry state 50 percent by weight of fructose: Other: Other: Other. The duty rate will be 5.1 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 https://hts.usitc.gov/current.
Your inquiry also requests a ruling on the eligibility for preferential tariff treatment under the NAFTA of the Pure Cane Classic Syrup (Lower Brix Formula) and Pure Cane Classic Syrup (Higher Brix Formula) produced in Canada.
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, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
Based on the facts provided, the Pure Cane Classic Syrup (Lower Brix Formula) when made in Canada using liquid sucrose #1 from Canada, potassium sorbate from China and citric acid from Brazil, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A) and General Note 12(t) 17.1. It will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
Also, based on the facts provided, the Pure Cane Classic (Higher Brix Formula) when made in Canada using liquid sucrose #1 from Canada, medium invert syrup from the United States, potassium sorbate from China and citric acid from Brazil, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A) and General Note 12(t) 17.1. 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 telephone number (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 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 Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division