CLA-2-21:OT:RR:NC:N5:433
Tammy Hetrick
AN Deringer Inc.
173 West Service Road Champlain, NY 12919
RE: The tariff classification, United States-Mexico-Canada Trade Agreement (USMCA) and country of origin of a miscellaneous edible preparation.
Dear Ms. Hetrick:
In your letter dated February 2, 2024, on behalf of The Maple Treat Corporation, you request a classification and USMCA binding ruling for an edible food preparation. A sample, product description, and manufacturing process were provided. The item subject of this ruling request is formulated of foreign and domestically sourced ingredients. A description of the item immediately follows.
The pancake and waffle syrup, “Maple Blend 3,” is a miscellaneous edible preparation for human consumption. The preparation’s ingredient composition is cane sugar (62.70%), water (29.63%), pure maple syrup dark (5%), pure maple syrup very dark (2%), salt (0.67%), and natural flavoring (0.61%). At the time of U.S. importation, the preparation is not a bulk product for sale to hospitals, prisons, military establishments or food service establishments such as restaurants, hotels, bars or bakeries, etc. At the time of U.S. importation, the preparation is packaged and labeled for grocery retail sale in 6, 8, 8.5, 12, 16, 32, and 128 ounce bottles.
You propose classification under subheading 2106.90.9997 Harmonized Tariff Schedule of the United States (HTSUS).
The applicable subheading for the subject merchandise will be 2106.90.9997 HTSUS, which provides for “Food preparations not elsewhere specified or included: Other: Other: Other: Other: Other: Other: Other: Other: Other: Containing sugar derived from sugar cane and/or sugar beets.”
Sourcing Scenario: The ruling request outlines an operation where ingredient 1 (cane sugar) is sourced from Brazil. The raw material ingredient is shipped and exported to Canada. In Canada, ingredient 2 (water), ingredient 3 (salt), ingredient 4 (natural flavoring), ingredient 5 (pure maple syrup, dark) and ingredient 6 (pure maple syrup, very dark) are domestically sourced. The documentation provided states, “The cane sugar could also come from Guatemala, Salvador, Costa Rica, and/or Mexico.” Rulings are issued with regard to specific facts; for the additional countries cited, the cane sugar ingredient composition is unknown and therefore the other countries are not under consideration in this ruling letter.
The production process follows: (1.) factory raw ingredients (water, maple syrup, granulated sugar, natural flavors, and salt) are sourced; (2.) raw maple syrup is weighed, cleaned and graded; (3.) the raw maple syrup is mixed with granulated sugar, natural flavors, salt and is then stored; (4.) the ingredients are further mixed, heat treated, filtered, and residue removed; (5.) the mixture is coded, labeled, inspected, sealed, stored, and packaged for U.S. export.
Eligibility for preferential treatment under the USMCA: The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act. General Note (GN) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if -
i. the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;
ii. the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;
iii. the good is a good produced entirely in the territory of one or more USMCA countries using nonoriginating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); or…
The subject merchandise contains non-originating materials, therefore it is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), the subject merchandise is not a good produced entirely in Canada, exclusively from originating materials. Therefore, we must next determine whether the non-originating materials undergo the tariff shift and other requirements provided for in GN 11(b)(iii) and GN 11(o). The applicable rule of origin for merchandise under subheading 2106.90.99 HTSUS, is in GN 11(o), HTSUS, which provides, in relevant part: Chapter 21
…15. A change to heading 2106 from any other chapter.
A tariff shift occurs with ingredient 1; it is classified in a chapter other than chapter 21, HTS, specifically in chapter 17 HTS, at the time of importation into Canada. Therefore the requisite tariff shift rule under GN 11(o), Rule 15 to Chapter 21, HTSUS, is met. In view of the facts, the subject merchandise described above qualifies for USMCA preferential tariff treatment. Country of Origin: Pursuant to section 102.0 interim regulations, the rules set forth in §§ 102.1 through 102.18 and 102.20 will determine the country of origin with respect to goods imported from Canada and Mexico.
Section 102.11 provides a required hierarchy for determining the country of origin of a good, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. Applied in sequential order, the required hierarchy establishes that: The country of origin of a good is the country in which:
(a)(1) The good is wholly obtained or produced; (a)(2) The good is produced exclusively from domestic materials; or (a)(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other requirements of these rules are satisfied.
As the subject merchandise is not wholly obtained or produced in a single country, Rule (1) of § 102.11(a)(1) is inapplicable. As the subject merchandise is not produced exclusively from domestic materials, Rule (2) of § 102.11(a)(2) is inapplicable. Accordingly, Rule (3) applies. Section 102.20 sets forth specific rules by tariff classification. The pertinent tariff shift rule for subheading 2106.90, states: A change to subheading 2106.90 from Chapter 17, provided that the good contains less than 65 percent by dry weight of sugar;
A tariff shift occurs with ingredient 1 (cane sugar) and it is formulated of less than 65 percent by dry weight of sugar. Prior to the tariff shift, ingredient 1 is from Chapter 17. In accordance with 19 C.F.R. § 102.11(a)(3), the country of origin of the “Maple Blend 3” is Canada.
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 at https://hts.usitc.gov/current.
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). The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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, please contact National Import Specialist Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division