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

N142304 January 21, 2011 CLA-2-21:OT:RR:NC:2:228 CATEGORY: Classification TARIFF NO.: 2103.90.9091 Mr. Norman Strim Nonna Pia’s Gourmet Sauces, Ltd. 9132 Emerald Drive Whistler, British Columbia Canada C0N 1B9 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of balsamic glazes from Canada; Article 509 Dear Mr. Strim: In your letter dated January 7, 2011 you requested a ruling on the status of balsamic glazes from Canada under the NAFTA. Ingredients breakdowns, a description of the manufacturing process, and images of the product and product labels were submitted with your letter. Nonna Pia’s Gourmet Balsamic Reduction (classic, rosemary, and strawberry fig), is described as a “finishing” sauce in the form of a viscous fluid, applied to prepared foods after they are plated and ready to be served. The product is made by placing balsamic vinegar and, for the flavored varieties, herbs and fruits into a large kettle and applying low heat for 8 to 10 hours to remove the moisture and reduce the vinegar to less than half its weight and volume. After reduction, fruit and herbs are strained, reintroduced in puree form, and sugar is added, lowering the product’s acidity and increasing its viscosity. The finished product is heated and hot filled into glass bottles holding 250 or 375 milliliters. The balsamic vinegar is a product of Italy, the sugar is a product of Canada, rosemary and strawberries may be products of the United States or Canada, and the figs will be a product of the United States. The applicable tariff provision for the Balsamic Reduction products 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