COUNTRY OF ORIGIN MARKING OF IMPORTED WINE KITS; ARTICLE 509

NY D88022 February 22, 1999 MAR-2 RR:NC:SP:232 D88022 CATEGORY: MARKING Mr. Robert Demers Deloitte & Touche 1 Place Ville-Marie Suite 3000 Montreal QC H3B 4T9 RE: COUNTRY OF ORIGIN MARKING OF IMPORTED WINE KITS; ARTICLE 509 Dear Mr. Demers: This is in response to your letter dated February 2, 1999, on behalf of Mosti Mondiale Inc., requesting a ruling on the country of origin marking requirements for an imported article which is processed in a NAFTA country prior to being imported into the U.S. A marked sample was not submitted with your letter for review. Descriptive literature was submitted with your request. The subject merchandise is described in the literature as Mosti Mondiale 23L. Sterile Wine Kits. You indicate that the wine kits contain the following ingredients: grape must, a 27 liter pail, oak, an instruction sheet, yeast, bentonite, stabilizer and isinglass. The grape must is produced in the United States and Italy, and the balance of ingredients are from Canada. It is noted that, while the source of the isinglass is listed as Canada, the actual origin is not known. Also, the submitted literature makes no mention of the oak ingredient. The grape must is packaged in a 23 liter poly lined bag. The yeast, bentonite, and stabilizer are packaged in individual packets, which range from 5 to 15 grams. The isinglass is in a 30 milliliter bottle. You indicate that the grape must is the only component that is processed by Mosti Mondiale in Canada. The grape must is blended and adjusted for acidity, etc. It consists of approximately 80 percent U.S. produced grape must and the balance is grape must from Italy. It is assumed that the other components are simply packaged into the wine kits in Canada. The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. §1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304. The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations. Section 134.1(b) of the regulations, defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added). Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish. You state that the imported wine kits are processed in a NAFTA country "Canada" prior to being imported into the U.S. Since, "Canada" is defined under 19 C.F.R. §134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported wine kits are goods of a NAFTA country", and thus subject to the NAFTA marking requirements. Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes. Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported wine kits are goods of Canada, Italy and the United States for marking purposes under section 102.11(c). Under this rule, the country of origin is the country or countries of all materials that merit equal consideration for determining the essential character of the good. In this case, the grape must, pail, oak (if included), yeast, bentonite, stabilizer and isinglass merit equal consideration in determining the essential character of the wine kit. Therefore, the country of origin of the wine kit is the countries of origin of these components, i.e., Canada, Italy and the U.S. However, since the component from the U.S. is exempt from marking, the U.S. is not required to appear on the country of origin marking of the wine kit. It is also noted that the country of origin of the isinglass must appear on the wine kit, if it is not produced in Canada or the U.S. The nutritional labeling requirements for the wine kits are regulated by the Food and Drug Administration (FDA). You may contact the FDA at: Food and Drug Administration Guidelines and Regulations Branch HFF 314, 200C Street, S.W. Washington, D.C. 20204 This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. Part 181). 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 John Maria at 212-637-7059. Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division