The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Lifesavers Chewy Crème Savers Candy from Canada; Article 509

NY H82147 June 21, 2001 CLA-2-17:RR:NC:SP:232 H82147 CATEGORY: Classification TARIFF NO.: 1704.90.3550; 1806.90.9019 Mr. Scott R. Boyer Kraft Foods North America, Inc. 910 Mayer Avenue Madison, WI 53704 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Lifesavers Chewy Crème Savers Candy from Canada; Article 509 Dear Mr. Boyer: In your letter dated June 1, 2001 you requested a ruling on the status of Lifesavers Chewy Crème Savers Candy from Canada under the NAFTA. Your request also asks for the country of origin for marking purposes of the products. Samples and information were submitted with your initial request dated April 6, 2001. The subject merchandise will be imported in three flavors: Orange & Crème, Strawberry & Crème and Chocolate & Caramel Crème. The Orange & Crème contain sugar, corn syrup, cream, coconut oil, gelatin, and small quantities of various other ingredients. The Strawberry & Crème contain corn syrup, sugar, cream coconut oil, gelatin and small quantities of various other ingredients. The Chocolate & Creme contain corn syrup, sugar, sweet milk, coconut oil, chocolate liquor, cream cocoa powder, gelatin and small quantities of various other ingredients. You indicate in your letter dated June 1, 2001, that all of the ingredients originate in NAFTA countries. Therefore, for purposes of this ruling, it is our understanding that none of the ingredients are produced outside of Canada, the United States or Mexico. The ingredients will be processed into finished candies in Canada. The candies will be individually wrapped and packaged for retail sale in pouches and bags of various sizes. The applicable tariff provision for the Orange & Crème and Strawberry & Crème candies will be 1704.90.3550, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Sugar confectionery (including white chocolate), not containing cocoa…other: confections or sweetmeats ready for consumption…other…put up for retail sale…other. The general rate of duty will be 5.6 percent ad valorem The applicable tariff provision for the Chocolate & Caramel Crème candy will be 1806.90.9019, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Chocolate and other food preparations containing cocoa...other...other...other... confectionery...other. The general rate of duty will be 6.2 percent ad valorem. The Lifesavers Chewy Crème Savers Candies, being wholly obtained or produced entirely in the territory of Canada, the United States or Mexico 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. Your inquiry also requests 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. 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 CFR 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 Lifesavers Chewy Crème Savers Candies are processed in a NAFTA country "Canada" prior to being imported into the U.S. Since, "Canada" is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported Lifesavers Chewy Crème Savers Candies 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 presented, we find that the imported Lifesavers Chewy Crème Savers Candies are goods of “Canada” for marking purposes, since they satisfy the requirements of Section 102.11(a)(3). 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 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