OT:RR:NC:N5:232
Mr. Michael Adachi
Victoria Distillers
111-2506 Beacon Ave
Sidney, V8L 1Y2
Canada
RE: The eligibility of the United States-Mexico-Canada Agreement (USMCA) of gin from Canada
Dear Mr. Adachi:
In your letter dated April 30, 2025, you requested a binding ruling on the eligibility of gin under the United
States-Mexico-Canada Agreement (USMCA). The subject merchandise is described as Empress 1908
Elderflower Rose Gin composed of spirits that contain neutral grain alcohol, juniper berries, orange peel,
lavender, and other botanicals. An ingredients breakdown, production description, product specifications,
and representative images of the product container accompanied your inquiry.
You have stated that the Elderflower Rose Gin is produced at your Canada distillery from neutral grain
alcohol of 192 proof (96% alcohol by volume), of which 100% of the neutral grain alcohol originates in
Canada. At the Canadian distillery, the neutral grain alcohol is macerated with botanicals that include juniper
(Kosovo), coriander (India), rose (Pakistan), orris root (Mexico), lavender (France), orange peel (USA),
elderflower (Bulgaria), and cinnamon (Indonesia). The botanicals and alcohol are distilled to strip away
impurities and create 183 proof (91.5% alcohol by volume) on average gin. The product is then distilled to
yield approximately 81% of the initial total volume and to remove impurities such as light and heavy alcohol,
resulting in gin of acceptable drinking quality. In Canada, the gin is then blended with water to 85 proof,
bottled and packaged in bottles of 375 milliliters, 750 milliliters, or 1 liter, and labeled, boxed, and shipped to
the United States.
USMCA:
The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30,
2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the
USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note ("GN")
11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is
an originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential
tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the
tariff schedule as a "good originating in the territory of a USMCA country" only if-
(i) the good is a good wholly obtained or produced entirely in the territory of one or more
USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries,
exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries
using non-originating materials, if the good satisfies all applicable requirements set forth in
this note (including the provisions of subdivision (o));
Since the gin contains non-originating ingredients, it is not considered a good wholly obtained or produced
entirely in a USMCA country under GN 11(b)(i), nor is the product produced exclusively from originating
materials per GN 11(b)(ii). Thus, we must determine whether the gin qualifies under GN 11(b)(iii).
The gin is classified under subheading 2208.50.0030, Harmonized Tariff Schedule of the United State
Annotated (HTSUSA). The applicable rule of origin for goods classified under subheading 2208.50.0030,
HTSUSA, is GN 11(o) Chapter 22.09 which states:
No required change in tariff classification to a good of subheadings 2208.30 through 2208.70, provided that
the non-originating alcoholic ingredients constitute no more than 10 percent of the alcoholic content of the
good by volume.
The grain alcohol is from Canada so that the tariff shift rule is satisfied.
Based on the facts provided, the gin qualifies for USMCA preferential treatment because it meets the
requirements of HTSUS General Note 11(b)(iii). The merchandise will therefore be entitled to a free rate of
duty under the USMCA upon compliance with all applicable laws, regulations, and agreements.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong
and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other
countries will be subject to an additional 10 percent ad valorem rate of duty. Your product falls within an
excepted subheading. At the time of entry, you must report the Chapter 99 heading applicable to your
product classification, i.e. the 9903.01.26 exclusion subheading, in addition to subheading 2208.50.0030,
HTSUS, listed above.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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, please contact
National Import Specialist Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division