CLA-2-21:OT:RR:NC:N2:228
Ms. Darlene DiBernardo
A.N. Deringer
173 West Service Road
Champlain, NY 12919
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) for yogurt alternative products from Canada
Dear Ms. DiBernardo:
In your letter dated October 17, 2019, you requested the tariff classification and status of the yogurt alternative products from Canada under the NAFTA on behalf of your client, Laiterie Chalifoux Inc., CA.
Samples, ingredients breakdowns and the manufacturing processes were provided with your inquiry. The samples were examined and discarded. The dairy-free yogurt alternative products, which are made with coconut milk and have the consistency of regular yogurt, are said to contain water, cane sugar, vanilla preparation and natural flavor from Canada, faba bean protein and pectin from the United States, coconut milk from Sri Lanka, tapioca flour from Thailand, pea protein from China, calcium phosphate from Germany, raspberry blackcurrant fruit preparation, mango passion fruit preparation, pineapple fruit preparation, lemon fruit preparation from Italy, and bacterial culture from Denmark. They come in five flavors: vanilla, blackcurrant raspberry, mango passion fruit, pineapple, and lemon.
The products will be packaged in jars each 8.34 ounces, net weight, and sold in packs of two units. You state in your inquiry that the materials are imported into Canada, where the manufacturing takes place to produce the yogurt alternative products prior to their importation into the United States.
The applicable subheading for the product will be 2106.90.9897, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included . . . other . . . other . . . other . . . other . . . containing sugar derived from sugar cane and/or sugar beets. The general 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 https://hts.usitc.gov/current.
You requested the applicability of the NAFTA for the blackcurrant raspberry, mango passion fruit, pineapple, and lemon flavors. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the North American Free Trade Agreement (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 the non-originating materials meet the tariff shift requirements of HTSUS General Note 12(b)(ii)(A) and 12(t)/21.14, “A change to heading 2106 from any other chapter.” The country of origin for Customs duty purposes will be Canada. 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 ww.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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division