CLA-2-7:RR:NC:2:228 H80259

Mr. Jeff Kendall
Border Brokerage Co., Inc.
P.O. Box 3549
Blaine, WA 98231

RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), and country of origin marking of sliced vegetables from Canada; Article 509

Dear Mr. Kendall:

In your letter dated April 20, 2001, on behalf of Sysco Food Services you requested a ruling on the status of vegetables from Canada under the NAFTA.

Cabbage, green peppers, and Roma tomatoes, grown in the United States or Mexico, will be exported to Canada. In Canada, the vegetables will be sliced, shredded, chopped or diced, packed into bags containing from 1.5 to 7 pounds, net weight, and shipped back to the United States, where they will be sold to restaurants, hotels, and other non-retail purchasers. The sliced, shredded, chopped or diced cabbage and green peppers, whether prepared from United States or Mexican-grown vegetables, will be exported to the United States year-round. The sliced, chopped, or diced Roma tomatoes prepared from Mexican produce will be exported to the United States from January to March first. The sliced, chopped, or diced Roma tomatoes made from United-States-grown tomatoes will be exported to the United States from March 2nd to the end of December.

The applicable tariff provision for the diced Roma tomatoes, when entered during the period from March 1 to July 14, inclusive, or the period from September 1 to November 14, inclusive, will be 0702.00.2065, Harmonized Tariff Schedule of the United States Annotated (HTS). The general rate of duty will be 3.9 cents per kilogram. If entered during the period from July 15 to August 31, inclusive, the applicable subheading will be 0702.00.4065, HTS, and the general rate of duty will be 2.8 cents per kilogram. When entered during the period from November 15 to the last day of February, the applicable subheading will be 0702.00.6065, HTS, and the general rate of duty will be 2.8 cents per kilogram.

The applicable subheading for the shredded, chopped or diced cabbage will be 0704.90.2000, HTS, which provides for cabbages, cauliflower, kohlrabi, kale and similar edible brassicas, fresh or chilled…other…cabbage. The general rate of duty will be 0.54 cents per kilogram.

The applicable subheading for the sliced, chopped, or diced green peppers will be 0709.60.4000, HTS, which provides for other vegetables, fresh or chilled…fruits of the genus Capsicum (peppers)…other. The general rate of duty will be 4.7 cents per kilogram.

The sliced, diced, chopped or shredded cabbage, green peppers, and Roma tomatoes, being wholly obtained or produced entirely in the territory of the United States Mexico and Canada, will meet the requirements of HTS General Note 12(b)(i).

The cabbage, green peppers (when prepared from United States-grown peppers), and Roma tomatoes (when prepared from tomatoes of United States origin) will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The green peppers, when prepared from Mexican peppers, classified in subheading 0709.60.4000, HTS, and entered under the terms of general note 12, HTS, during the period from June 1 to October 31, inclusive, will be free of duty pursuant to subheading 9906.07.44, HTS. If entered during the period from January 1 to May 31, inclusive, or the period from November 1 to December 31, inclusive, the rate of duty will be 1.1 cents per kilogram, pursuant to subheading 9906.07.45, HTS.

The diced Roma tomatoes, when prepared from Mexican-grown tomatoes, classified in subheading 0702.00.2065, HTS, entered on March 1 under the terms of general note 12, HTS, and imported in quantities that fall within the quantitative limits described in note 9 to subchapter 6 of chapter 99, HTS, will be subject to a 0.9 cents per kilogram rate of duty pursuant to subheading 9906.07.03, HTS. If the quantitative limits of note 9 to subchapter 6 of chapter 99 have been reached, the tomatoes will be dutiable at the rate of 3.9 cents per kilogram, in subheading 9906.07.04, HTS. When classified in subheading 0702.00.6065, HTS, entered between January 1 and the end of February under the terms of general note 12, HTS, and imported in quantities that fall within the quantitative limits described in note 10 to subchapter 6 of chapter 99, HTS, the tomatoes will be subject to a 0.6 cents per kilogram rate of duty pursuant to subheading 9906.07.08, HTS. If the quantitative limits of note 10 to subchapter 6 of chapter 99 have been reached the tomatoes will be dutiable at the rate of 2.8 cents per kilogram, in subheading 9906.07.09, HTS. When entered at any other time, the diced Roma tomatoes prepared from Mexican-grown tomatoes will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

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. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.45(a)(2) of the regulations, provides that "a good of a NAFTA country may be marked with the name of the country of origin in English, French or Spanish. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.

The rules for determining when, for marking purposes, the country of origin of an imported good is one of the parties to "NAFTA" are set forth in Part 102, Customs Regulations.

Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported shredded, chopped or diced cabbage, the sliced, chopped or diced green peppers (when made from United States-grown peppers), and the diced Roma tomatoes (when made from United States-grown tomatoes) are goods of the United States for marking purposes. The sliced, chopped or diced green peppers and the diced Roma tomatoes, when made from Mexican-grown peppers or tomatoes, are goods of Mexico for marking purposes.

If a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the U.S.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 Stanley Hopard at 212-637-7065.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division