• Type : Trade • HTSUS :

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 October 3, 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 Original Gin composed of spirits that contain neutral grain alcohol, juniper, coriander, rose, and other botanicals. An ingredients breakdown, production description, product specifications, and representative images of the product container accompanied your inquiry.

You stated that the Empress 1908 Original 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 Kosovo), coriander (India), rose (Pakistan), orris root (Mexico), lemon (Turkey), orange peel (USA), angelica root (Poland), sarsaparilla (India), star anise (India), and cinnamon (Indonesia). The botanicals and alcohol are distilled to strip away impurities and create gin that is “full proof,” roughly 183 proof (91.5 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 81 percent of initial volume. This is said to remove impurities, including light and heavy alcohol, and to result in gin of suitable quality. The gin is then blended with water to create an 85 proof gin. The finished product is packaged in bottles of 375 ml, 750 ml, and 1000 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 nonoriginating 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 of Canada are not subject to reciprocal tariffs. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.26, 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/. 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.

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)
Evan Conceicao
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division