CLA-2-17:OT:RR:NC:232
Diane Richter
World Finer Foods, Inc. 1455 Broad Street, 4th floor
Bloomfield, NJ 07003
RE: The tariff classification of “La Perruche” Sugar Chunks from Brazil and France
Dear Ms. Richter:
In your letter dated February 20, 2014, you requested a tariff classification and country of origin ruling.
The subject merchandise consists of brown and white irregularly shaped sugar chunks sold under the name “La Perruche.” The sugar chunks are created by first taking raw sugar and refining it through filtration, crystallization and maturation until the sugar agglomerates into bars. The brown sugar is produced by adding caramelized syrup made from the cane sugar during refining. The bars are broken into irregular lumps and are packaged into boxes which are imported into the United States for sale to food service distributors. The brown sugar chunks have a polarity of 98.9 degrees and are produced from cane sugar from France (approximately 58 percent) and Brazil (approximately 42 percent). The white sugar chunks have a polarity of 99.7 degrees. Based on the information provided, the percentage of cane sugar from France contained in the white sugar chunks ranges between 59 and 100 percent and up to 41 percent from Brazil.
The applicable subheading for the “La Perruche” brown sugar chunks will be 1701.91.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for cane or beet sugar and chemically pure sucrose in solid form…other… containing added coloring but not containing added flavoring matter. The rate of duty will be 3.6606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.91.3000, HTSUS. The duty rate will be 35.74 cents per kilogram. In addition, products classified under subheading 1701.91.3000, HTSUS, may be subject to additional duties based on their value as described in subheadings 9904.17.08 to 9904.17.15, HTSUS.
The applicable subheading for the “La Perruche” white sugar chunks will be 1701.99.1025, Harmonized Tariff Schedule of the United States (HTSUS), which provides for cane or beet sugar and chemically pure sucrose, in solid form... Other: Other…Other…Specialty sugars. The general rate of duty will be 3.6606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.99.5025, HTS. The duty rate will be 35.74 cents per kilogram. In addition, products classified under subheading 1701.99.5025, HTS, will be subject to additional duties based on their value as described in subheadings 9904.17.08 to 9904.17.16, HTSUS.
Your inquiry also requests a ruling on the country of origin determination for the “La Perruche” sugar chunks.
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.
The country of origin for marking purposes is defined at section 19 CFR 134.1(b), to mean 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 the meaning of Part 134. A substantial transformation is effected when a manufacturer or processor converts or combines an article into a new and different article resulting in a change in name, character, or use.
In this case, we must first determine if the product undergoes a substantial transformation. The primary issue for resolution in this matter is whether the refining operations performed on the raw sugar in the country of exportation, that is, France, are of such a substantial nature as to justify the conclusion that the resulting product is a manufacture of that country. See Headquarters' Ruling Letter 082033, issued September 5, 1989. In general, a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681F.2d 778 (1982); See also Superior Wire v. U.S., 11 CIT 608 (1987), 669 F. Supp. 472, aff'd. 867 F.2d 1409 (1989).
In HRL 082033, Customs determined that the refining of raw sugar would not substantially transform the product, since the refining process did not change the essential character of the
raw sugar and make it into a new article with a new name, character, or use. Customs explained that:
[t]he refining process does not change the product's
intended use, which is dictated by the very nature
of the product--the raw sugar with its desired sucrose.
The raw sugar already possesses the qualities sought
after in sugar (its sweetness and nutriousness).
These are not the result of the refining process.
While the refining of sugar changes its color and
increases its purity,...the refining process is not
necessary to obtain its essential qualities. Refining
cane sugar upgrades and purifies the sugar, but it does
not change the essential character of the product.
In this case, since the refining of the raw sugar in France is not a substantial transformation, the “La Perruche” sugar chunks are products of France and Brazil for country of origin and quota purposes.
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 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,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division