The tariff classification, country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of cooking wines from Canada; Article 509

N079935 October 28, 2009 CLA-2-21:OT:RR:NC:2:228 CATEGORY: Classification; Marking TARIFF NO.: 2103.90.8000 Mr. Paul Fitzpatrick YRC Logistics 20 Central Street Salem, MA 01970 RE: The tariff classification, country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of cooking wines from Canada; Article 509 Dear Mr. Fitzpatrick: In your letter dated October 9, 2009, on behalf of Mosti Mondiale, Inc., St. Catherine, QC, Canada, you requested a ruling on the status of cooking wines from Canada under the NAFTA. Images of the product labels accompanied your letter. The products are described as “denatured cooking wines,” produced by fermentation of grape juice or grape juice concentrate, to which 1.5 percent salt or 1.5 percent garlic juice have been added. The wines are then stabilized using potassium metabisulfite and potassium sorbate, filtered, and packaged for professional or institutional use. The wine with salt will be packaged in a 4-liter or 20-liter “bag-in-a-box;” the wine with garlic juice will be put up in a 500 milliliter glass bottle and in a 1.5 or 4-liter bag-in-a-box. The package labels for the cooking wines with salt are composed of a single panel containing information in French and English identifying the ingredients, volume and alcoholic content, manufacturer, and the declaration that the wine is “not for sale or use as a beverage.” The country of origin, “product of Canada,” appears below the name of the product. The package labels for the garlic infused wine are in a three or four panel format containing the same information as the salted wine. The country of origin, “product of Canada,” appears on one of the panels, either on the panel containing the ingredients or on the panel containing the volume and alcohol content. The grape juice and grape juice concentrate will be a product of the United States or Italy. The yeast used for fermentation will be a product of Canada. Salt and garlic juice will be products of the United States, potassium sorbate will be a product of China, and the potassium metabisulfite will be a product of Hungary. The applicable tariff provision for the cooking wine with garlic and cooking wine with salt will be 2103.90.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for mixed condiments and mixed seasonings…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,… 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 General Note 12(t)/21.7A(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. 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. The country of origin marking requirements for a “good of a NAFTA country” are also determined in accordance with Annex 311 of the North American Free Trade Agreement (“NAFTA”), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations. Section 134.45(a)(2) of the regulations, provides that “a good of a NAFTA country may be marked with the name of the country of origin in English, French or Spanish.” Section 134.1(g) of the regulations, defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain. With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable. The proposed marking of the imported cooking wines, as described above, is conspicuous, legible and permanent, and satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. It is an acceptable country of origin marking. 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