CLA-2-21:OT:RR:NC:N2:228
Mr. Paul Ryberg
Ryberg and Smith, L.L.C.
1054 Thirty-first Street, N.W.
Washington, DC 20007
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a sugar and gelatin blend from Guatemala
Dear Mr. Ryberg:
In your letters dated July 16, 2012 and August 13, 2012, on behalf of Articulos de Consumo Popular, S.A., DBA Meresa, you requested a ruling on the status of a sugar and gelatin blend from Guatemala under the DR-CAFTA.
An ingredients breakdown and descriptive literature accompanied your July letter. The product is said to be a dry mixture composed of 90 percent sugar and 10 percent gelatin. The dry powdered gelatin will be a product of the United States or Mexico. The refined cane sugar is produced in Guatemala. In Guatemala, the gelatin and sugar will be mixed until homogenous, and packed in 50-kilogram poly-lined bags for exportation. After importation into the United States, colorings and/or flavorings will be added to the sugar and gelatin mixture to make gelatin-based food products such as Jello-style gelatin desserts, jellies, gummies or soft candies that use gelatin as a base. The end products typically have sugar content of approximately 90 percent.
The applicable subheading for the sugar and gelatin blend will be 2106.90.5870, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included … other … other … of gelatin … other … containing sugar derived from sugar cane or sugar beets. The rate of duty will be 4.8 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 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—
(i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement;
(ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
Based on the facts provided, the product, when produced in Guatemala using the gelatin from the United States, will qualify for DR-CAFTA preferential treatment because it will meet the requirement of HTSUS General Note 29(b)(i). The good will therefore be entitled to a free rate of duty under the DR-CAFTA upon compliance with all applicable laws, regulations, and agreements.
When produced in Guatemala using the gelatin from Mexico, the sugar and gelatin mixture will also qualify for DR-CAFTA preferential treatment because it will meet the requirements of HTSUS General Note 29(b)(ii)(A) and 29(n)/21.15. The good will therefore be entitled to a free rate of duty under the DR-CAFTA 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 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.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division