OT:RR:NC:N5:232
Mr. Michael Adachi
Victoria Distillers Inc.
111-2506 Beacon Avenue
Sidney, V8L 1Y2 British Columbia
Canada
RE: The eligibility of the United States-Mexico-Canada Agreement (USMCA) of Gin from Canada
Dear Mr. Adachi:
In your letter dated June 13, 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 Indigo
Gin composed of spirits that contain neutral grain alcohol, juniper, coriander, grapefruit, 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 Empress 1908 Indigo Gin is produced at your Canada distillery from neutral grain
alcohol of 192 proof (96 percent alc./vol.), of which 100 percent of the neutral grain alcohol originates in
Canada. At the distillery, the neutral grain alcohol is macerated with botanicals that include juniper (product
of Macedonia or Kosovo), coriander (India), grapefruit (Spain), cinnamon (Indonesia), ginger (India), and
rose (Pakistan). The botanicals and alcohol are distilled to strip away impurities and create gin that is “full
proof,” roughly 183 proof (91.7 percent alc./vol.), on average. The distilled product yields roughly 390 liters
of absolute alcohol (LAA) from the initial volume of 480 LAA, or a recapture of 83 percent of the initial
volume. This is said to remove impurities, such as light and heavy alcohol, and result in gin of suitable
quality. The gin is then blended with Sensient Natural Blue (Italy) and water to create an 85 proof gin. The
finished product is packaged in bottles of 375 ml, 750 ml, 1000 ml, and 1750 ml, 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.
No non-originating alcoholic ingredients are used in the production of the good. Therefore, the rule of origin
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.
Products of Canada as provided by heading 9903.01.10 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(j), HTSUS, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13,
9903.01.14, and 9903.01.15, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At
the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.10, in addition to
subheading 2208.50.0030, HTSUS, listed above. Articles that are entered free of duty under the terms of
general note 11 to the HTSUS (U.S.-Mexico-Canada Agreement (USMCA)), including any treatment set
forth in subchapter XXIII of Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be
subject to the additional ad valorem duties provided for in heading 9903.01.10. If your product is entered
duty free as originating under the USMCA, you must report heading 9903.01.14, HTSUS, in addition to
subheading 2208.50.0030, HTSUS.
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. At this time products from all 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 tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.
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,
(for)
Steven A. Mack
Director
National Commodity Specialist Division