CLA-2-21T:RR:NC:N5:228
Karen Hannah
Celtrade Canada Inc
7566 Batch Rd
Mississauga L4T1L2
Canada
RE: The tariff classification and eligibility of the United States-Mexico-Canada Agreement (USMCA) of a
sauce/marinade starter
Dear Ms. Hannah:
In your letter dated June 20, 2025, you requested a binding ruling on the tariff classification and United
States-Mexico-Canada Agreement (USMCA) eligibility of a sauce/marinade starter.
An ingredients breakdown, description of the manufacturing process, and a picture of the product
accompanied your inquiry.
The subject merchandise, “Garlic and Ginger Mix,” is described as a sauce/marinade starter for restaurants.
The product is said to be composed of premix water (Canada), 26 percent diced IQF ginger (China), 14
percent minced garlic (China), water celtrade (Canada), guar gum (India) and phosphoric acid (China). The
sauce/marinade starter is imported in a fluid form and refrigerated condition in 2-pound clear pouches. The
product is intended for sale to food service establishments such as restaurants for further cooking, mixing
with other ingredients and application to menu items.
The product is said to be prepared in Canada by mincing, dicing and blending IQF ginger and garlic imported
from China with phosphoric acid to a pH of less than 4.0. The finished product is stored in a refrigerated
condition and packed within hermetically sealed pouches.
Classification:
The applicable subheading for the product, “Garlic and Ginge Mix,” will be 2106.90.9998, Harmonized
Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified
or included . . . other . . . other . . . other. The general rate of duty will be 6.4 percent ad valorem.
Products of Mexico as provided by heading 9903.01.01 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(a), HTSUS, other than products classifiable under headings 9903.01.02, 9903.01.03, 9903.01.04, and
9903.01.05, 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. 9903.01.01, in addition to subheading 2106.90.9998,
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 9903.01.01. If your product is entered duty free as originating under the
USMCA, you must report heading 9903.01.04, HTSUS, in addition to subheading 2106.90.9998, 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. [9903.01.27 or exclusion subheading], in addition to subheadings 2106.90.9998, 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 on the World Wide Web at https://hts.usitc.gov/current.
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)); or
Since the sauce/marinade starter contains non-originating ingredients, they are 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 product
qualifies under GN 11(b)(iii).
As previously noted, the product is classified under subheading 2106.90.9998, HTSUS. The applicable rule
of origin for goods classified under subheading 2106.90.9998, HTSUS, is in GN 11(o)Chapter 21, HTSUS,
which provides: “A change to heading 2106 from any other chapter.”
In this case, the sauce/marinade starter contains the following non-originating ingredients that need to
undergo the tariff shift: ginger (China), garlic (China), guar gum (India) and phosphoric acid (China). Since
the non-originating ingredients in the product are all classified in a Chapter other than Chapter 21, HTSUS,
the tariff shift rule is met. Therefore, the sauce/marinade starter is an eligible good for preferential tariff
treatment under the USMCA.
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.
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 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 Timothy Petrulonis at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division