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NY 807206

March 23, 1995

CLA-2-7:S:N:N7:228 807206


TARIFF NO.: 0703.20.0000

Ms. Nancy Tsang
East Trade Enterprise
P.O. Box 212
Oakland, CA 94604

RE: The tariff classification and country of origin marking under the North American Free Trade Agreement (NAFTA), of garlic segments from Canada; Article 509.

Dear Ms. Tsang:

In your letters dated December 16, 1994, January 19, 1995, and February 8, 1995 you requested a ruling on the status of garlic segments from Canada under the NAFTA.

The imported merchandise is described as refrigerated, peeled garlic segments, packed in plastic bags or jars containing 5 pounds, net weight. The product is prepared from whole garlic bulbs, imported into Canada from Argentina, Chile, China, Mexico, Taiwan, and Vietnam. In Canada, the garlic is sorted, peeled, separated into segments, subjected to a "treatment" with unknown quantities of nitrogen or carbon dioxide, packed and refrigerated.

The applicable tariff provision for the imported garlic segments will be 0703.20.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for garlic...and other alliaceous vegetables, fresh or chilled...garlic. The general rate of duty, for the segments made from Argentine, Chilean, Chinese, Mexican, and Taiwanese garlic, will be 1.49 cents per kilogram. For the segments made from Vietnamese garlic, the rate of duty will be 3.3 cents per kilogram.

The segments made from garlic grown in Mexico, being wholly obtained or produced entirely in the territory of Mexico and Canada, will meet the requirements of HTSUSA General Note 12(b)(i), and will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The segments produced from garlic bulbs grown in Argentina, Chile, China, Taiwan, and Vietnam do not qualify for preferential treatment under the NAFTA because the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/7, HTSUSA.

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 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 interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).

Section 134.1(b) of the interim regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).

Section 134.1(j) of the interim regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the interim 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. Section 134.45(a)(2) of the interim 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.

You state that the imported garlic segments are processed in a NAFTA country, Canada, prior to being imported into the U.S. Since Canada is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported garlic segments are goods of a NAFTA country, and thus subject to the NAFTA marking requirements.

Part 102 of the interim regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the interim regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA Marking Rules set forth in Part 102 of the interim regulations to the facts of this case, we find that, for marking purposes, the imported garlic segments are goods of Argentina, Chile, China, Mexico, Taiwan, or Vietnam, as applicable. In accordance with section 102.11(a)(3), the foreign materials will not undergo the necessary change in tariff classification set out in section 102.20. We find, in accordance with section 102.11(b)(1), that the foreign garlic, in all cases, imparts the essential character to the imported segments.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Office of Regulations and Rulings, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229.


Jean F. Maguire
Area Director

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