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NY G85409




January 9, 2001

CLA-2-27:RR:NC:2:237 G85409

CATEGORY: CLASSIFICATION

TARIFF NO.: 2710.00.2000; 9801.00.1097

Ms. Darlene DiBernardo
Deringer Logistics Consulting Group
1 Lincoln Blvd. Suite 225
Rouses Point, NY 12979

RE: The tariff classification and country of origin marking, and status under the North American Free Trade Agreement (NAFTA), of liquid paraffin products from Canada; Article 509

Dear Ms. DiBernardo:

In your letter dated December 14, 2000, on behalf of Rayflam Inc., you requested a ruling on the status of liquid paraffin products from Canada under the NAFTA.

A component breakdown was submitted with your letter. In Canada liquid paraffin in bulk from the United States is put up in plastic bottles for retail sale, the products may be unscented and uncolored, scented, or scented and colored. The perfume is from Canada and the colorant is from the US or Canada.

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.

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 Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that each of the liquid paraffin products are goods of the United States for marking purposes.

Applying the NAFTA Marking rules set forth in Part 102 of the regulations to the facts of this case, we find that the liquid paraffin products are goods of the United States for marking purposes. In general, articles of United States origin are not subject to the requirements of 19 U.S.C. 1304. The Federal Trade Commission (FTC) has jurisdiction concerning the marking of American made articles. Any inquiries on that subject should be directed to the FTC. The address is Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508.

The applicable tariff provision for the scented, or scented and colored liquid paraffin products will be 2710.00.2000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70 percent or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations: kerosene. The general rate of duty will be 10.5 cents per barrel.

The liquid paraffin products, being made entirely in the territory of the United States and Canada using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The applicable tariff provision for the unscented and uncolored liquid paraffin in a plastic bottle for retail sale will be 9801.00.1097, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroadotherother. Products classified in subheading 9801.00.1097 are duty free.

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

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 Cantone at 212-637-7018.

Sincerely,

Robert B. Swierupski
Director,

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