CLA-2-18:OT:RR:NC:SP:232
Ms. Lisa M. Castillo-Santiago
Albatrans Inc.
149-10 183rd Street
Jamaica, NY 11413
RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), of an “organic drink” product from Canada; Article 509
Dear Ms. Castillo-Santiago:
In your letter dated December 19, 2007, on behalf of your client, Jovial Organics, of Franklin, Connecticut, you requested a ruling on the status of an organic drink product from Canada under the NAFTA.
Samples and ingredient breakdowns accompanied your letter. The samples were examined and will be returned. The drink mixes come in three flavors: Toddy Iced Mocha Espresso (TD-7320-M1), Toddy Euro Iced Espresso (TD-7320-E1) and Toddy Tea Latte Bancha (TD 7320-T1). All are liquid, concentrated products and will be blended into a finished beverage.
All of the three flavors of “organic drink” mixes contain 2.8 percent by dry weight of organic sugar. The iced mocha espresso contains 87.48 percent organic milk, 12.52 percent presweetened mocha coffee (organic cold brewed coffee concentrate), organic cocoa, organic sugar and water. The euro iced espresso contains 88.74 percent organic milk, 11.24 percent presweetened coffee (organic cold brewed coffee concentrate), organic sugar and water. The tea latte bancha contains 41.56 percent organic milk, 16.88 percent presweetened green tea (organic cold brewed green tea concentrate), organic sugar and water.
The micro-brewed coffee and micro brewed tea is blended in the USA from products originating from non-NAFTA countries. The organic milk is a product of the USA exclusively. In Canada, all ingredients are blended and packaged for retail sale in 10.5 fluid ounce Tetra Pak.
The applicable subheading for the Toddy Iced Mocha Espresso will be 1806.90.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for chocolate and other food preparations containing cocoa: other: other: other…other. The rate of duty will be 6 percent ad valorem.
The applicable subheading for the Toddy Euro Espresso will be 2101.12.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Extracts, essences and concentrates of coffee, tea or mate and preparations with a basis of these products or with a basis of coffee, tea or mate; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof: Extracts, essences and concentrates of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee: Preparations with a basis of extracts, essences or concentrates or with a basis of coffee: Other: Other. The rate of duty will be 8.5 percent ad valorem.
The applicable subheading for the Toddy Tea Latte Bancha will be 2101.20.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Extracts, essences and concentrates of coffee, tea or maté and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof: Extracts, essences and concentrates of tea or maté, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or maté: Extracts, essences and concentrates: Other: Other. The rate of duty will be 8.5 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), (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 Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A), 12(t)/18.5, and 12(t)/21.2. The goods 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 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).
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 646-733-3031.
Sincerely,
Robert B. Swierupski, Director
National Commodity Specialist Division