The tariff classification, country of origin marking, and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a food ingredient from the Dominican Republic.

N055630 March 31, 2009 CLA-2-21:OT:RR:E:NC:N2:228 CATEGORY: Classification TARIFF NO.: 2106.90.9997 Mr. Mark Anderson Chemsol USA 601 Carlson Parkway Minnetonka, MN 55305 RE: The tariff classification, country of origin marking, and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), of a food ingredient from the Dominican Republic. Dear Mr. Anderson: In your letter dated March 23, 2009 you requested a ruling on the status of a food ingredient from the Dominican Republic under the DR-CAFTA. The product is described as a dry blend consisting of 95 percent citric acid and 5 percent cane or beet sugar, packed in 50-kilogram poly-lined bags or in 1000-kilogram tote sacks, used “in the beverage industry” as an ingredient in drink mixes. The citric acid will be a product of China and the sugar will be a product of the Dominican Republic. In the Dominican Republic, the ingredients are blended according to the prescribed formula, and packaged for export to the United States. The applicable tariff provision for this citric acid/sugar blend will be 2106.90.9997, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included…other…other…other…containing sugar derived from sugar cane and/or sugar beets. The general rate of duty will be 6.4 percent ad valorem. General Note 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i)the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; … Based on the facts provided, the goods described above qualify for DR-CAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 29(b)(ii)(A) and 29(n)/21.15. The goods will therefore be entitled to a free rate of duty under the DR-CAFTA 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/. 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 to 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. 19 CFR 134.1(b) defines “country of origin” as “the country of manufacture, production, or growth of any article of foreign origin entering the United States. 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 the meaning of this part…” An article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed. U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940). Section 134.1(d) defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. In this case, we find the citric acid from China is not substantially transformed as a result of the processing in the Dominican Republic. The imported citric acid/sugar blend described above is therefore a good of China for marking purposes. We also find that the ultimate purchaser of the imported blend is the beverage industry user. The container or containers in which the industry user receives the blend must be legibly, conspicuously, and permanently marked to show China as the country of origin. 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. The merchandise in question may be subject to antidumping duties or countervailing duties. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and countervailing duty investigations”), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at http://www.cbp.gov (click on “Import” and “AD/CVD”). 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 Stanley Hopard at (646) 733-3029. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division