The Country of Origin Marking of Milk Chocolate Chips, item number CHM-TO-1046601-A00.

N219495 July 5, 2012 MAR-2:OT:RR:NC:232 CATEGORY: Classification Mr. Rene Ramirez Barry Callebaut USA 400 Industrial Park St. Albans, VT 05478 RE: The Country of Origin Marking of Milk Chocolate Chips, item number CHM-TO-1046601-A00. Dear Mr. Ramirez: In your letter dated May 31, 2012, on behalf of Barry Callebaut USA, you requested a ruling on the country of origin marking of Milk Chocolate Chips. A marked sample was not submitted with the letter for review. The subject merchandise, the bulk chocolate, is comprised of: sugar, milkfat and vanillin from Canada, nonfat dry milk and cocoa butter from the United States, chocolate liquor from the Ivory Coast, and soy lecithin from India. Bulk chocolate blocks, weighing over 4.5 kilograms, are produced in the Barry Callebaut facility in Canada. The bulk chocolate blocks are sent to Vermont where they are melted down. The liquefied chocolate is molded into chips and they are packaged in 25 pound cardboard boxes put up for commercial sale in the United States. 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 (19 CFR Part 102). Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) states that the country of origin of a good is the country in which: (1) wholly obtained or produced; (2) the good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. The applicable change in tariff classification for 1806.20 set out in section 102.20(d), Section IV, Chapters 16 through 24 of the Customs Regulations provides: A change to subheading 1806.20 from any other heading, except from Chapter 17, or A change to subheading 1806.20 from chapter 17, provided that the good contains less than 65 percent by dry weight of sugar. In this scenario, the requisite tariff shift would not be met and as a result we find that the country of origin of the Milk Chocolate Chips, item number CHM-TO-1046601-A00, is Canada and that the Chips are a good of Canada for marking purposes pursuant to section 102.20 (d). 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, Thomas J. Russo Director National Commodity Specialist Division