CLA-2-21:OT:RR:NC:N2:228
Mr. Kenneth M. Carmon
Bay Brokerage, Inc.
44951 County Route 191 Suite 201
P.O. Box 293
Wellesley Island, NY 13640
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a juice blend from Canada; Article 509
Dear Mr. Carmon:
In your letters dated October 15, and December 10, 2012, you requested a ruling on the status of a wine grape juice blend from Canada under the NAFTA on behalf of L’uva Bella Juice Company, Ohio.
Ingredients information and product literature were submitted with your October letter. Additional information was provided in your December letter and the email transmissions dated January 9, and January 10, 2013. The product is described to be a wine grape juice blend, composed of 69 percent water, 25 percent grape juice concentrate (68 brix), 2.3 percent citric acid, 1.8 percent tartaric acid, and less than 1 percent each of yeast and diammonium phosphate. The blend will be cooled, imported in 23 liter buckets, and shipped in a reefer truck at -28 Fahrenheit to prevent fermentation. The product will be used for making wine.
The grape juice concentrate is a product of Chile. The water and yeast are sourced from Canada. The diammonium phosphate is a product of Mexico. The citric acid and the tartaric acid are products of China. In Canada, the ingredients are blended. Yeast is added to the product right before shipping to the United States. The brix of the final juice blend is approximately 24 brix.
The applicable subheading for the wine grape juice blend will be 2106.90.9973, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included…other…other… preparations for the manufacture of beverages… 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 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 product described above qualifies for NAFTA preferential treatment, because it meets the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t)/21.14. The goods will therefore be entitled to a free rate of duty under the NAFTA 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 181 of the Customs Regulations (19 C.F.R. 181).
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