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

N010593 May 8, 2007 CLA-2-21:RR:E:NC:N2:228 CATEGORY: Classification TARIFF NO.: 2103.90.9091 Ms. Diane Fritzlar Nestle Canada, Inc. 25 Sheppard Ave. W North York, Ontario M2N 6S8 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a sauce from Canada; Article 509 Dear Ms. Fritzlar: In your letter dated May 1, 2007 you requested a ruling on the status of a sauce from Canada under the NAFTA. An ingredients breakdown accompanied your letter. Stouffer’s Alfredo Sauce is a finished sauce, imported in frozen condition in 64-ounce pouches. The sauce is composed of approximately 40 percent water, 19 percent cream, 17 percent nonfat milk solids, 13 percent vegetable oil, 7 percent grated Parmesan cheese, 2 percent modified starch, and less than one percent each of salt, cream powder, grated Romano cheese, flavor, color, xanthan gum, and other stabilizers. All but two of the ingredients are products of the United States or Canada. The xanthan gum is a product of China, and the grated Parmesan cheese may be a product of the United States, Japan, or Denmark. In Canada, the ingredients will be combined according to the prescribed formula, packaged, and frozen. The applicable tariff provision for this product will be 2103.90.9091, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sauces and preparations therefor…other…other…other. The general rate of duty will be 6.4 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. 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 Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t)/21.7A(B). 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 merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html. 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