United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2005 NY Rulings > NY R02605 - NY R02685 > NY R02676

Previous Ruling Next Ruling
NY R02676




October 28, 2005

CLA-2-18:RR:NC:SP:232 R02676

CATEGORY: CLASSIFICATION

TARIFF NO.: 1806.20.7300; 2106.90.9700

Mr. Osvaldo Maldonado
Paulette Diaz Barbosa U.S. Customs Broker Ave Marginal Kennedy #2000 Mai Basic Center Suite 210, Puerto Nuevo
San Juan, Puerto Rico 00920

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

Dear Mr. Maldonado:

In your letter dated October 11, 2005, on behalf of Frito Lay Snacks, you requested a ruling on the status of drink pre-mixes from Mexico under the NAFTA.

Additional information was submitted by facsimile dated October 25, 2005. The subject merchandise consists of a chocolate and a strawberry pre-mix. The chocolate pre-mix ingredients and their origin are: sugar std (Mexico), oatmeal flour (Mexico), paslgard 5821 (Denmark), ascorbic acid (United States), hexametafosfat of sodium (United States), sodium citrate (Mexico), cocoa D 11s ADM (Holland), fosfate disodie (Mexico), flavor IFF73 (Mexico). The strawberry pre-mix ingredients and their origin are: sugar std (Mexico), oatmeal flour (Mexico), paslgard 5821 (Denmark), ascorbic acid (United States), hexametafosfat of sodium (United States), sodium citrate (Mexico), flavor 1 (Mexico), fosfate disodie (Mexico), flavor 2 (Mexico), flavor 3 (Mexico), red 40 (Mexico). The pre-mixes will be packaged in plastic bags inside a layer of kraft paper packing. Each bag will weigh approximately 25 to 29 kilograms. The pre-mixes will be used to produce chocolate and strawberry drinks.

The applicable subheading for the chocolate pre-mix, will be 1806.20.7300, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Chocolate and other food preparations containing cocoa: Other preparations in blocks, slabs or bars, weighing more than 2 kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg: Other: Containing more than 65 percent by dry weight of sugar: Other: Articles containing over 65 percent by dry weight of sugar described in additional U.S. note 2 to chapter 17: Other. The general rate of duty will be 30.5 cents per kilogram plus 8.5 percent ad valorem.

The applicable subheading for strawberry pre-mix, will be 2106.90.9700 Harmonized Tariff Schedules of the United States (HTS), which provides for food preparations not elsewhere specified or includedotherotherarticles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17other. The general rate of duty will be 28.8 cents per kilogram plus 8.5 percent ad valorem.

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, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty 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, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.}

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: