NY D84072 - COUNTRY OF ORIGIN MARKING OF MAPLE SUGAR; ARTICLE 509 - United States International Trade Commision Rulings

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NY D84072

November 6, 1998

MAR-2 RR:NC:Sp:232 D84072

CATEGORY: MARKING

Mr. Bruce Bascom
Bascom Maple Farms, Inc.
RR 1, Kingsbury Road
Alstead, New Hampshire 03602

RE: COUNTRY OF ORIGIN MARKING OF MAPLE SUGAR; ARTICLE 509

Dear Mr. Bascom:

This is in response to your letter dated September 23, 1998 requesting a ruling on the country of origin marking requirements for an imported article, which is claimed to be a good of a NAFTA country, that is later to be further processed in the U.S. into a finished article. A sample was submitted with your letter for review.

The subject merchandise is described as pure granulated maple sugar, which will be produced in the United States from imported Canadian maple syrup, or from a blend of imported Canadian maple syrup and United States maple syrup. It is stated that the maple sugar is produced in the United States by filtering, dehydrating, mixing, crystallizing, drying and grinding the imported or domestic maple syrup. The finished maple sugar will be used as an ingredient in baking.

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 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 134.1(b) of the 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 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 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 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.

In order to determine the country of origin marking requirements we must first apply the NAFTA Marking Rules in order to determine whether the imported maple syrup "is a good of a NAFTA country", prior to being further processed in the U.S.

Part 102 of the 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 regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA rules of origin set forth in Part 102 of the regulations to the facts of this case, we find that, for marking purposes, the imported maple syrup is a good of a NAFTA country prior to being further processed in the U.S. Since the maple syrup is produced in Canada, it meets the requirements of Section 102.11(a)(1).

The next issue is whether the Canadian maple syrup has been processed into a product of the United States. Based on the facts of this case, we find that the imported maple syrup as a result of the further processing performed in the U.S. does not become an article of U.S. origin under Part 102 of the regulations. The change in tariff classification required by Section 102.20(d)has not been satisfied. Therefore, in accordance with Section 102.11(b)(1), the essential character of the maple sugar is imparted by the Canadian maple syrup, and where applicable, by both the Canadian and United States maple syrup.

In the case where the maple sugar is produced in the United States only from Canadian maple syrup, the retail container of the finished product must be marked to reflect Canada as the country of origin. In the case where the maple sugar is produced in the United States from maple syrup from both Canada and the United States, the retail container of the finished product must be marked to reflect Canada as the country of origin, although it would be acceptable if the marking indicates both Canada and the United States as the origin of the product.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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 John Maria at 212-466-5730.

Sincerely,

Robert B. Swierupski
Director,

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