MAR-2 OT:RR:E:NC:N2:228
Ms. Tanis Johnson
Newly Weds Foods Co.
450 Superior Blvd.
Mississauga, Ontario L5T 2R9 Canada
RE: The country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of a seasoning from Canada; Article 509
Dear Ms. Johnson:
In your letters dated August 19, 2008, October 29, 2008, and January 15, 2009, you requested a ruling on the status of a seasoning from Canada under the NAFTA.
An ingredients breakdown accompanied your August letter. Ingredient and value information were submitted with your October letter, and additional ingredient information was submitted with your January letter. The tariff classification of this product, Mongolian Beef Seasoning, was the subject of a previous ruling, N042938, issued to you on November 24, 2008. The seasoning is composed of oleo ginger, sugar, drying agent, starch, and caramel color from the United States. The pepper may be from China, India, or Peru. The guar gum and black pepper are from India. The sesame oil and Teriyaki sauce powder are from Japan. The garlic powder is from China. The I and G enhancer is from Thailand. The salt is from Canada, and the white wine flavor is from Germany. In Canada, the ingredients are blended and packed for export to the United States.
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 Mongolian Beef Seasoning described above does not qualify for NAFTA preferential treatment, because one of the non-originating ingredients, the Teriyaki sauce powder, fails to meet the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t)/21.7A(A), noting GN 12(f)(v). The product will therefore not be entitled to a free rate of duty under the NAFTA.
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 seasoning is a good of Canada 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 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.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, Office of International Trade, Regulations and Rulings Mint Annex, 799 9th Street N.W., Washington, D.C. 20001-4501.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division