CLA-2-21:OT:RR:NC:232
Mr. Timothy Krellwitz
Rafi Industries
1700 Higgins Road Suite 610
Des Plaines, Illinois 60018
RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), of “AFVC” cappuccino drink mix from Mexico; Article 509
Dear Mr. Krellwitz:
In your letter dated August 17, 2010 you requested a ruling on the status of “AFVC” cappuccino drink mix from Mexico under the NAFTA.
Samples and ingredient breakdowns accompanied your letter. The samples were examined and disposed of. The product is a coffee-based drink beverage mix and is said to contain 41.3 percent cane or beet refined sugar, 26.0 coconut creamer, 12.4 percent maltodextrin, 7.3 percent whey permeate, 5.0 percent nonfat dry milk, 4.0 percent whey, 2.5 percent instant coffee, 0.6 percent salt, 0.3 percent cellulose gum, 0.5 percent free flow agent, 0.1 vanillin. According to the information provided, the cane or beet refined sugar, maltodextrin and coconut creamer are of United States or Mexican origin. The whey, vanillin and whey permeate are of United States or Canadian origin. The nonfat dry milk and salt are of United States origin and the instant coffee is of Mexican origin. The cellulose gum will either be from Sweden, Holland or Mexico. The free flow agent (silicone dioxide) is of United States origin.
The ingredients are shipped to Mexico for manufacture of the cappuccino drink mix “AFVC”. Upon importation into the United States, “AFVC” will be distributed to institutional companies and sold through vending machines as a cappuccino drink after hot water is added. The product will be packed in cases containing three or four pound pouches.
The applicable subheading for the “AFVC” cappuccino drink mix will be 2101.12.5400, Harmonized Tariff Schedule of the United States (HTSUS), which provides for extracts, essences and concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee...other...articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17...described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. The general rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. note 8 to chapter 17 have been reached, the product will be classified in subheading 2101.12.5800, HTS, and dutiable at the rate of 30.5 cents per kilogram plus 8.5 percent ad valorem. In addition products classified in subheading 2101.12.5800, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.17.49 to 9904.17.65, HTSUS.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A), and 12(t)/21.2. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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 telephone number (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,
Robert B. Swierupski
Director
National Commodity Specialist Division