The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an anhydrous milk fat blend from Mexico; Article 509

NY K84376 April 9, 2004 CLA-2-21:RR:NC:2:228 K84376 CATEGORY: Classification TARIFF NO.: 2106.90.6400, 2106.90.6600 Mr. Hoyt Huffman Interfood, Inc. 1345 N. Union Avenue Union, MO 63084 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an anhydrous milk fat blend from Mexico; Article 509 Dear Mr. Huffman: In your letters dated March 1, 2004, and March 16, 2004 you requested a ruling on the status of an anhydrous milk fat blend from Mexico under the NAFTA. The product is a blend consisting of 95 percent anhydrous milk fat and five percent of either salt or sugar. The anhydrous milk fat will be a product of either Australia or the European Union, and the salt or sugar will be from Mexico. The blends will be manufactured in Mexico and imported into the United States in 25-kg boxes or 1000-kg totes. The blend will be used as a fat source in food preparations. The applicable subheading for the 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... 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 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 products will be classified in subheading 2106.90.6600, HTS, and dutiable at the rate of 70.4 cents per kilogram, plus 8.5 percent ad valorem. In addition, products 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. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if-- (i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein… The blend does not qualify for preferential treatment under the NAFTA because the non-originating material, the anhydrous milk fat, will not undergo the change in tariff classification required by General Note 12(t)/21.12, HTSUSA. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 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 Stanley Hopard at 646-733-3029. 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 and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division