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

Mr. Daniel Waltz
Squire Patton Boggs (US) LLP
2550 M Street, NW
Washington, DC 20037

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

Dear Mr. Waltz:

In your letter dated November 23, 2015, you requested a ruling on classification, country of origin, and status under the NAFTA of four flavored syrups.

Ingredients breakdowns, product specifications, representative samples, and the liquid sucrose manufacturing process accompanied your letter. The samples were examined and disposed of. The products are said to be pure cane syrups flavored as caramel, hazelnut, vanilla (higher brix formula), and vanilla (lower brix formula). They are all said to contain liquid sucrose, medium invert syrup, filtered water, and trace amounts of caramel color, Foamdoctor A10FG (anti-foaming agent), potassium sorbate, and citric acid. The syrups will be both of United States and foreign ingredients blended in Canada, and imported into the U.S. in two bottle sizes, 375 ml and 750 ml, net weight, for sale to food service and retail customers. The flavored syrups will be used via pump dispensers to sweeten beverages of consumers’ choice such as coffee, teas, cocktails, etc.

In your letter, you suggested the four flavored syrups may fall in subheading 2106.90.9972, Harmonized Tariff Schedule of the United States (HTSUS), preparations for the manufacture of beverages. We disagree. Based on the manufacturing process, and the ingredients composition, they will be classified elsewhere.

The applicable subheading for the four flavored syrups will be 2106.90.9997, HTSUS, which provides for food preparations not elsewhere specified or included . . . other . . . other . . . other . . . other . . . containing sugar derived from sugar cane and/or sugar beets. The rate of duty will be 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 the 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, 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; ...

Based on the facts provided, the merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met.

The primary ingredients of all the syrups included in this request, you state, will be liquid sucrose and medium invert syrup derived from sugar that is refined by Redpath in Canada from “world” raw sugar. As such, the country of origin for the four syrups will be the same origin as the “world” raw sugar.

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 Bruce N. Hadley, Jr. at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division