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

N062491 June 23, 2009 CLA-2-29:OT:RR:E:NC:2:238 CATEGORY: Classification TARIFF NO.: 2938.90.0000 Ms. Julie Dreke Cargill Incorporated 15407 McGinty Road West Wayzata, MN 55391 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Rebiana from Mexico; Article 509 Dear Ms. Dreke: In your letter dated May 29, 2009, you requested a ruling on the status of Rebiana from Mexico under the NAFTA. The subject product, Rebiana is a sweetener containing mainly the steviol glycoside rebaudioside A, which is extracted from the leaves of the stevia plant. According to your letter, the stevia leaves are grown, harvested and dried in China. The dried leaves undergo an initial extraction process in China to separate and remove some of the sweetening properties. Afterwards, the “crude stevia extract” is shipped to Mexico for further purification processing. It is dissolved in ethanol and water in a dissolution tank and undergoes crystallization and is washed prior to filtering and drying. The product is purified from 90% total glycoside (35% content of Rebaudioside A) into 97% Rebaudioside A (Rebiana). You claim the purification process in Mexico renders it as a significant change in order to become food grade rebiana. However, we disagree as there is no substantial transformation from the crude stevia extract into the Rebiana. The applicable tariff provision for the Rebiana will be 2938.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Glycosides, natural or reproduced by synthesis, and their salts, ethers, esters, and other derivatives: Other.” The rate of duty will be 3.7 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 (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; Based on the submitted information, the merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. This ruling letter has not addressed the Regional Value Content (RVC) of the subject goods. If you desire a ruling regarding the RVC of your goods and their eligibility for NAFTA preferential treatment, provide the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)), to U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177, along with a copy of this letter. 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 Harvey Kuperstein at (646) 733-3033. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division