CLA-2-17:OT:RR:NC:232
Mr. John B. Pellegrini
McguireWoods LLP
1345 Avenue of the Americas-Seventh Floor
New York, NY 10105-0106
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of liquid sugar from Canada
Dear Mr. Pellegrini:
In your letter dated February 3, 2014, on behalf of CSC Sugar LLC, you requested a tariff classification ruling.
The subject merchandise is liquid sugar which consists of 67.5 percent sugar and the balance water by weight. The liquid sugar consists of raw cane sugar originating in Mexico, and is refined in Canada. The finished product will be used in the production of a variety of food products.
The applicable subheading for the liquid sugar will be 1702.90.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other sugars…sugar syrups not containing added flavoring or coloring matter…other… derived from sugar cane or sugar beets…other…other. The general rate of duty will be 0.35 cents per liter.
Your inquiry also requests a ruling on the eligibility for preferential tariff treatment under the NAFTA of the liquid sugar produced in Canada. In this case, you state that Mexican-origin raw cane sugar will be processed at a refining facility in Canada to produce the liquid sugar.
General Note 12, HTSUS, incorporates Article 401 of the NAFTA into the HTSUS, General Note 12(b) provides, in pertinent part, that:
For purposes of this note, goods imported into the customs territory of the U.S. 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 in the territory of Canada, Mexico and/or the U.S.; or (ii) they have been transformed in the territory of Canada, Mexico, and/or the U.S. so that each of the non-originating material 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 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 they are goods produced entirely in the territory of Canada, Mexico and/or the U.S. exclusively from originating materials. As stated in the facts above, the refined sugar is not wholly produced or obtained in Mexico. However, it would be wholly obtained or produced entirely in the territory of Canada and Mexico as set forth in GN 12(b)(i), and therefore, an originating good under GN 12. 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/.
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 Frank Troise at (646) 733-3031.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division