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NY R02612





October 18, 2005

CLA-2-17:RR:NC:SP:232 R02612

CATEGORY: CLASSIFICATION

TARIFF NO.: 1701.99.1090; 1701.99.5090

Ms. Heather Marcaccini
Cargill Incorporated
15407 McGinty Road West
Wayzata, MN 55391

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of sugar blends from Mexico; Article 509

Dear Ms. Marcaccini:

In your letter dated September 26, 2005 you requested a ruling on the status of sugar blends from Mexico under the NAFTA.

The subject merchandise consists of four blends: 99.9 percent refined sugar and .1 percent lecithin, 99.5 percent refined sugar and .5 percent lecithin, 99 percent sugar and 1 percent lecithin, 95 percent refined sugar and 5 percent lecithin. You indicate that the sugar in the blends will be grown and refined in Mexico. For purposes of this ruling, it is understood that the refined sugar has a polarity of not less than 99.5 degrees. The lecithin will be produced from soybeans grown and processed in the United States, Brazil, or Europe. The final blend will be produced in Mexico. It will be packaged in bags, shipped to the United States, and used in the confectionery/chocolate conching process.

The applicable subheading for the sugar and lecithin blends, if described in additional U.S. note 5 to chapter 17 and entered pursuant to its provisions, will be 1701.99.1090, Harmonized Tariff Schedule of the United States (HTS), which provides for Cane or beet sugar and chemically pure sucrose, in solid form: Other: OtherOther. The rate of duty will be 3.6606 cents per kilogram less 0.020668 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854 cents per kilogram. If not described in additional U.S. note 5 to chapter 17 and not entered pursuant to its provisions, the applicable subheading will be 1701.99.5090, HTS. The duty rate will be 35.74 cents per kilogram.

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. ยง 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

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

Based on the facts provided, when the lecithin is produced from United States soybeans, the sugar and lecithin blends described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(i). When the lecithin is produced from soybeans from Brazil or Europe, the sugar and lecithin blends described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(ii)(A). If classified under subheading 1701.99.1090, HTS, the goods will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. If classified under subheading 1701.99.5090, HTS, the goods will be entitled to a duty rate of 10.583 cents per kilogram less 0.15 cents per kilogram for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 6.845 cents per kilogram 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 telephone number (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 John Maria at 646-733-3031.

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, Commercial Rulings Division, Bureau of Customs and Border Protection, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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