CLA-2-21:OT:RR:NC:N2:228
Ms. Ivannia Chaves
LAICA
Barrio Tournon
San Jose, 2330-1000
Costa Rica
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 Costa Rica
Dear Ms. Chaves:
In your letter dated October 19, 2012, you requested a ruling on the status of a sugar and gelatin blend from Costa Rica under the DR-CAFTA.
A product data sheet and production flow chart accompanied your inquiry. The mixture is said to be composed of 92 percent cane sugar and 8 percent gelatin. The gelatin is a product of the United States. The sugar is sourced from Costa Rico. In Costa Rico, the gelatin and sugar will be blended, and packed in 1000-kilogram polypropylene totes. After importation into the United States, color and flavor will be added to the sugar and gelatin mixture. The finished product will be packaged for retail sale.
In your letter, you suggested the product may fall in subheading 2103.90, Harmonized Tariff Schedule of the United States (HTSUS), the provision for mixed condiments and mixed seasonings. Based on the product's ingredient composition and its use, it will be classified elsewhere.
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 described above 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.
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