The country of origin, tariff classification and status under the North American Free Trade Agreement (NAFTA), of food ingredients from Canada or Mexico; Article 509

NY H80132 May 18, 2001 CLA-2-21:RR:NC:2:228 H80132 CATEGORY: Classification TARIFF NO.: 2106.90.6400, 2106.90.6600 Mr. Robert F. Seely Barnes, Richardson & Colburn 303 East Wacker Drive Suite 1100 Chicago, Illinois 60601 RE: The country of origin, tariff classification and status under the North American Free Trade Agreement (NAFTA), of food ingredients from Canada or Mexico; Article 509 Dear Mr. Friedman: In your letter dated April 16, 2001, you requested a ruling on the status of food ingredients from Canada or Mexico under the NAFTA. Ingredients breakdowns accompanied your letter. The product is a blend of 95 percent anhydrous butterfat and 5 percent skim milk powder, prepared in and exported from Mexico or Canada. The blend is made by mixing together ingredients originating in New Zealand, one or more European countries, or Canada. The blend will be packed in bulk containers and sold to commercial bakeries and food processing companies. The applicable subheading for the anhydrous butterfat/skim milk powder blend, if imported in quantities that fall within the limits described in additional U.S. note 10 to chapter 4, will be 2106.90.6400, Harmonized Tariff Schedule of the United States (HTS), which provides for food preparations not elsewhere specified or included...other... containing over 10 percent by weight of milk solids...other, dairy products described in additional U.S. note 1 to chapter 4...described in additional U.S. note 10 to chapter 4 and entered pursuant to its provisions. The general rate of duty will be 10 percent ad valorem. If the quantitative limits of additional U.S. Note 10 to chapter 4 have been reached, the product will be classified in subheading 2106.90.6600, HTS, and dutiable at the general rate of 70.4 cents per kilogram plus 8.5 percent ad valorem. In addition, products of New Zealand or the European countries, classified in subheading 2106.90.6600, HTS, will be subject to additional duties based on their value, as described in subheadings 9904.04.59 to 9904.04.66, HTS. When a product of Canada, and made with anhydrous butter fat and skim milk powder of Canadian origin, the blend, being wholly obtained or produced entirely in the territory of 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 made in Mexico or Canada with anhydrous butterfat and/or skim milk powder of New Zealand or European origin, the merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/21.12, HTSUSA. 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 to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. 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. 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 when made in Canada from anhydrous butterfat and skim milk powder of Canadian origin, the imported blend is a good of Canada for marking purposes. When made in Canada using butterfat of New Zealand or European origin, the imported blend is a good of New Zealand or the particular European country. When made in Mexico using anhydrous butterfat of Canada, New Zealand, or European origin, the imported blend is a good of the country of origin of the butterfat - Canada, New Zealand, or the specific European country. 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 212-637-7065. 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. NW, Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division