The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a butter sauce from Canada; Article 509

NY D85462 December 18, 1998 CLA-2-21:RR:NC:2:228 D85462 CATEGORY: Classification TARIFF NO.: 2103.90.9060 Mr. David M. Dunbar Katten Muchin & Zavis 525 West Monroe Street Chicago, IL 60661-3693 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a butter sauce from Canada; Article 509 Dear Mr. Dunbar: In your letter dated November 30, 1998, on behalf of Kerry, Inc., Beloit, Wisconsin, you requested a ruling on the status of a butter sauce from Canada under the NAFTA. The product is a finished human food product, in fluid form, composed of water, butter, sugar, salt, corn starch, flavor, xanthan gum, mustard flour, and emulsifier (sodium steryl -2-lactylate). The xanthan gum and emulsifier may be products of the United States or a non-NAFTA country; all other ingredients are products of the United States or Canada. After combining and processing the ingredients in Canada, the finished sauce will be packed in 50-pound plastic-lined boxes or 1500-pound plastic-lined totes, exported to the United States, and used by Kerry's customers as an ingredient in a frozen vegetable preparation. The applicable tariff provision for the butter sauce will be 2103.90.9060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for sauces and preparations therefor...other...other...other. The general rate of duty will be 6.8 percent ad valorem. Effective January 1, 1999, the general rate of duty will be 6.6 percent ad valorem. When made from ingredients whose origin is the United States or Canada, the sauce, being wholly obtained or produced entirely in the territory of the United States and Canada, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. When prepared using xanthan gum and/or emulsifier from non-NAFTA countries, each of the non-originating materials used to make the sauce will have satisfied the change in tariff classification required under HTSUSA General Note 12(t)/21.7. The sauce will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. 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 Stanley Hopard at 212-466-5760. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division