CLA-2-21:OT:RR:NC:N2:228
Mr. Lenny Feldman
Sandler, Travis & Rosenberg, P.A.
1000 NW 57th Court, Suite 600
Miami, FL 33180
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a sugar and gelatin blend from Canada; Article 509
Dear Mr. Feldman:
In your letter dated April 8, 2015, on behalf of Barry Callebaut USA you requested a ruling on the status of a sugar and gelatin blend from Canada under the NAFTA.
Descriptive literature accompanied your inquiry. Additional information was provided via emails dated April 27 and April 28, 2015. Sugar/Gelatin Blend 928 is said to be a white powder mix composed of 92 percent refined sugar and 8 percent gelatin, packed in super sacks containing from 2204 to 3300 pounds. The sugar could originate from Australia, Brazil, El Salvador, South Africa, Colombia, Guyana, Guatemala, Costa Rica, Honduras, Belize or Nicaragua. The gelatin may be a product of Canada, the United States, Brazil or Argentina. The refined sugar and the gelatin are blended in Canada, and then imported into the United States. Upon importation, the blend would be used by food processors to make gelatin dessert mixes without adding additional gelatin, starch, vegetable gum, carrageenan or other food stabilizers.
The applicable tariff provision for the Sugar/Gelatin Blend 928 will be 2106.90.5870, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included … other … other … of gelatin … other … containing sugar derived from sugar cane or sugar beets. The general rate of duty will be 4.8 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; or ....
Based on the facts provided, the product described above qualifies for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b) (ii) (A) and General Note 12(t)/21.14. The good will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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 [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division