CLA-2-19:OT:RR:NC:N2:228
Ms. Tammy C. Simoneau
Regional Compliance Coordinator
Norman G. Jensen, Inc.
395 Caswell Avenue
Derby Line, VT 05830
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of “bakery mixes” from Canada; Article 509
Dear Ms. Simoneau:
In your letters dated November 10, 2011 and December 16, 2011, on behalf of Nutra Sun Foods Ltd., Regina SK, Canada, you requested a ruling on the status of “bakery mixes” from Canada under the NAFTA.
Lists of ingredients, samples, and attachments identifying final products that can be prepared using the four “bakery mixes” accompanied your November letter. Ingredients breakdowns for three French origin ingredients and baking instructions were submitted with your December letter. The samples were examined and disposed of. Campaillette des Champs Mix, Banette Mix, Campaillou Mix and Butter Brioche Mix are off-white, cream or brown-colored mixtures, in the form of a powder, and will be packed in 50-lb bags for sale to industrial buyers. After mixing with water, salt and yeast, the Campaillette des Champs Mix is used to bake baguette, petits pains, crusty rolls, loaves, boule de campagne and couronnes. The Banette Mix is said to be perfect for making crusty rolls, petits pains, bloomers, pizzas and garlic bread with addition of water and yeast. The Campaillou Mix is said to be an excellent basis for different style sandwiches. Admixed water, salt and yeast, the mix is used to prepare for pain au levain style bread. The Butter Brioche Mix combined with eggs, water and yeast is used to make French brioche or petits pains.
The Campaillette des Champs Mix is composed of 94 percent wheat flour and 6 percent “IXO Rustique 12%” (deactivated rye sourdough, rye flour, wheat gluten and wheat flour). The Banette Mix consists of 98 percent wheat flour and 2 percent “Premix Banette Canada” (wheat flour, deactivated rye sourdough powder, malted barley flour, malted wheat flour, deactivated yeast, absorbic acid and enzymes). The Campaillou Mix contains 88 percent wheat flour and 12 percent “IXO Rustique 12%” (deactivated rye sourdough, rye flour, wheat gluten and wheat flour). The Butter Brioche Mix contains 50 percent wheat flour and 50 percent “Concentrate Brioche 50%” [ 32 percent butter powder (90 percent butter, milk protein, whey permeate, mono-and diglycerides), sugar, wheat four, wheat gluten, sodium stearoyl 2 lactylate, salt, powdered egg yolk, deactivated wheat sourdough, malted wheat flour, barley malt extract, deactivated yeast, ascorbic acid, color and enzymes]. The wheat flour is a product of Canada. The “IXO Rustique 12%,” “Premix Banette Canada” and “Concentrate Brioche 50%” are products of France. The mixtures are prepared in Canada.
In your November letter, you suggested the products may fall in subheading 1901.20, Harmonized Tariff Schedule of the United States (HTSUS), the provision for mixes for the preparation of bakers' wares of heading 1905. We disagree. Based on the products’ ingredient composition and the added ingredients to make the finished products, they will be classified elsewhere.
The applicable subheading for the Butter Brioche Mix, if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 1901.90.4200, HTSUS, which provides for food preparations of flour, groats, meals, starch … not containing cocoa … not elsewhere specified or included … other … other … dairy products described in additional U.S. note 1 to chapter 4 … dairy preparations containing over 10 percent by weight of milk solids … described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions. The rate of duty will be 16 percent ad valorem. If the quantitative limits of additional U.S. note 10 to chapter 4 have been reached, the product will be classified in subheading 1901.90.4300, HTSUS, and dutiable at the rate of $1.035 per kilogram plus 13.6 percent ad valorem.
The applicable subheading for the Campaillette des Champs Mix, Banette Mix and Campaillou Mix will be 1901.90.9095, HTSUS, which provides for food preparations of flour, groats, meals, starch … not containing cocoa … not elsewhere specified or included … other … other … other … other. The 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 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; . . . .
Based on the facts provided, the Butter Brioche Mix will not qualify for preferential treatment under the NAFTA because the “Concentrate Brioche 50%” used in the production of the good will not undergo the change in tariff classification required by General Note 12(t)/19.5, HTSUS.
Based on the facts provided, the Campaillette des Champs Mix, Banette Mix and Campaillou Mix will not qualify for preferential treatment under the NAFTA because the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/19.6, HTSUS.
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).
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 (646) 733-3029.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division