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

NY K86973 June 28, 2004 CLA-2-19:RR:NC:2:228 K86973 CATEGORY: Classification TARIFF NO.: 1901.20.6500; 1901.20.7000 Ms. Maida Hart English Bay Blending 1066 Cliveden Ave. New Westminster, BC V3M 5R5 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a cookie mix from Canada; Article 509 Dear Ms. Hart: In your letter dated June 16, 2004 you requested a ruling on the status of a cookie mix from Canada under the NAFTA. An ingredients breakdown and a sample of the packaging were submitted with your letter. Homemade Cookies for Dummies Chocolate Chip Cookie Mix is a free-flowing powder containing chocolate chips, packed for retail sale in pouches holding 14.5 ounces, net weight. It is said to be composed of 35 percent flour, 32 percent sugar, 29 percent chocolate chips, 2 percent vegetable shortening, and one percent or less, each, of artificial flavor, salt, and sodium bicarbonate. Package instructions direct the user to add one egg and one stick of softened butter to create a cookie dough, portion the dough onto cookie sheets, and bake. All ingredients are products of the United States or Canada. Blending and packaging is done in Canada. The applicable subheading for the cookie mix, if imported in quantities that fall within the limits described in additional U.S. note 3 to chapter 19, will be 1901.20.6500 Harmonized Tariff Schedules of the United States (HTS), which provides for food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40 percent by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included…other…other… other…mixes and doughs described in additional U.S. note 1 to chapter 19…described in additional U.S. note 3 to this chapter 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 3 to chapter 19 have been reached, the cookie mix will be classified in subheading 1901.20.7000, HTS, and dutiable at the rate of 42.3 cents per kilogram plus 8.5 percent ad valorem. 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, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or Based on the facts provided, the cookie mix described above, when classified in subheading 1901.20.6500, HTS, qualifies for NAFTA preferential treatment, because it will meet the requirements of HTSUSA General Note 12(b)(i). The goods will therefore 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). 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. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division