CLA-2-21:OT:RR:NC:N2:228
Mr. John M. Southerst
Beveragist Co.
96 McGregor Crescent
Ancaster, Ontario
Canada L9G1B5
RE: The tariff classification, and status under the North American Free Trade Agreement (NAFTA) of Gojiccino concentrate from Canada; Article 509
Dear Mr. Southerst:
In your letter dated December 11, 2012 and an email dated December 20, 2012, you requested a ruling on classification and the status under NAFTA of Gojiccino concentrate from Canada.
Your letter included an ingredient breakdown by weight and a description of manufacturing process. Additional information was submitted via email transmissions dated December 18 and December 20, 2012. Gojiccino concentrate is a brown-colored liquid concentrate said to be thick but pourable like a syrup sold in 16-ounce (500ml.) bottles. The product is made by processing dried goji berries into a grind, mixing with water and flavoring, and turning the mixture into a slurry which is then reduced to a liquid concentrate. Nothing is removed or refined from the mixture except seeds and some of the sediment. The product is sold to food service vendors, such as, cafes, restaurants, hotels, beverage bars to make a resulting beverage drink (Gojiccino) by adding milk, soy milk, almond milk or rice milk and heating.
The dried goji berries originate from China, the flavoring originates from Uganda or Madagascar, and the water is from Canada where the manufacturing process takes place.
In your letter, you suggested the product be classified in subheading 1302.19.9140, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other vegetable extracts. Based on the ingredients contained therein the product will be classified elsewhere.
The applicable subheading for the Gojiccino concentrate will be 2106.90.9973, HTSUS, which provides for food preparations not elsewhere specified or included … other … other … other … preparations for the manufacture of beverages … other. 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 product described above qualifies for NAFTA preferential treatment because it meets the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t)/21.14. The product 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 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 (646) 733-3029.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division