The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a Sugar/Citric Acid Blend from Mexico; Article 509.

N052944 March 25, 2009 CLA-2-17:OT:RR:NC:232 CATEGORY: Classification TARIFF NO.: 1701.99.1090; 1701.99.5090 Mr. Timothy Krellwitz Rafi Industries 1700 Higgins Road Suite 610 Des Plaines, IL 60018 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a Sugar/Citric Acid Blend from Mexico; Article 509. Dear Mr. Krellwitz: In your letter dated February 23, 2009 you requested a ruling on the status of a sugar/citric acid blend from Mexico under the NAFTA. Samples were submitted with your request; they were reviewed and destroyed. The subject merchandise is described as cane or beet sugar from Mexico or the United States blended with citric acid from the United States, China, Indonesia and Israel. Sample “A” is said to contain 90 percent sugar and 10 percent citric acid. Sample “B” is said to contain 64 percent sugar and 36 percent citric acid. The ingredients will be blended in Mexico and shipped to the United States in 50 pound bags, 100 pound bags or one ton totes. After importation into the United States, the product will be used in a variety of industrial food applications. The applicable subheading for the sugar/citric acid blend-Sample “A” and Sample “B”, if described in additional U.S. note 5 to chapter 17 and entered pursuant to its provisions, will be 1701.99.1090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Cane or beet sugar and chemically pure sucrose, in solid form: Other: Other…Other. The rate of duty will be 3.6606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.99.5090, HTS. The duty rate will be 35.74 cents per kilogram. 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, thatFor 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(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the non-originating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,       provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.In the case where the citric acid is produced in the United States blended with Mexican or United States sugar being wholly obtained or produced entirely in the territory of Mexico, the sugar/citric blend-Sample “A” and Sample “B” as described above qualify for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(i). If classified under subheading 1701.99.1090 and 1701.99.5090, HTS, the good will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. In the case where the citric acid is produced in the following non-NAFTA countries: China, Indonesia and Israel, the non-originating material used to make the sugar/citric acid blend has satisfied the change in tariff classification. The sugar/citric acid blend-Sample “A and Sample B” as described above qualify for NAFTA preferential treatment because it will meet the requirements of HTSUS General Note 12(t) 17.1. If classified under subheading 1701.99.1090 and 1701.99.5090, HTSUS, the good will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. 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/. 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 telephone number (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 177 of the Customs Regulations (19 C.F.R. 177). 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 Frank Troise at (646) 733-3031. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division