The tariff classification and status under the North American Free Trade Agreement (NAFTA), of snack seasonings from Canada; Article 509

NY C85925 April 17, 1998 CLA-2-21:RR:NC:2:228 C85925 CATEGORY: Classification TARIFF NO.: 2103.90.7400, 2103.90.7800, 2103.90.8000 J. Frank McCormac McCormick Canada Inc. 3340 Orlando Dr. Mississauga, Ontario, Canada L4V 1C7 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of snack seasonings from Canada; Article 509 Dear Mr. McCormac: In your letter dated March 26, 1998, you requested a ruling on the status of snack seasonings from Canada under the NAFTA. Two samples and ingredients breakdowns accompanied your letter. The samples were examined and disposed of. Nalley's Hickory Seasoning 91494 is an orange powder consisting of 30-40 percent salt, 22 percent torula yeast, 10-15 percent each of monosodium glutamate, sugar and wheat flour, 0.5-1 percent each of calcium silicate, citric acid, oleoresin paprika, and vegetable oil, and less than one percent each of smoke flavor and tumeric flavor. Simulated Salt & Vinegar Seasoning 95046 is a white powder containing 50-60 percent lactose, 20-30 percent sodium diacetate, 15-20 percent salt, 1-5 percent each of shortening, malic acid, and sodium citrate, and less than one percent of soy bean oil. The products will be used as ingredients to flavor snacks such as potato chips or corn tortilla chips. The majority of the ingredients for the two seasonings are products of either Canada or the United States. The exceptions are the torula yeast from Switzerland, sugar from Australia, Costa Rica, Guatemala, or South Africa, oleoresin paprika from Morocco, oleoresin turmeric from India, and the sodium diacetate from the United Kingdom. In Canada, the ingredients are mixed into a consistent blend, and packaged into 50 pound bags. The applicable subheading for the Nalley's Hickory Seasoning 91494, when containing over 10 percent sugar, and if imported in quantities that fall within the limits described in additional U.S. note 4 to chapter 21, will be 2103.90.7400, Harmonized Tariff Schedule of the United States (HTS), which provides for mixed condiments and mixed seasonings described in additional U.S. note 3 to this chapter...described in additional U.S. note 4 to this chapter and entered pursuant to its provisions. The rate of duty will be 7.5 percent ad valorem. If the quantitative limits of additional U.S. note 4 to chapter 21 have been reached, the product will be classified in subheading 2103.90.7800 HTS, and dutiable at the rate of 32.3 cents per kilogram plus 6.8 percent ad valorem. The applicable subheading for the Hickory Seasoning, when containing 10 percent sugar, and the Simulated Salt & Vinegar Seasoning 95046 will be 2103.90.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for mixed condiments and mixed seasonings ...other...other...other. The general rate of duty will be 6.8 percent ad valorem. Each of the non-originating materials used to make the Simulated Salt & Vinegar Seasoning has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/21/7. The seasoning will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. The Hickory Seasoning 91494 does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods, the torula yeast, will not undergo the change in tariff classification required by General Note 12(t)/21/7 and does not meet the requirements of General Note 12(f). 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 Stanley Hopard at 212-466-5760. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division