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

NY E85009 August 11, 1999 CLA-2-22:RR:NC:SP:232 E85009 CATEGORY: Classification TARIFF NO.: 2202.90.1000 Mr. Louis de Bellefeuille Natrel Inc. 333 Lebeau Boulevard Saint-Laurent (Quebec) H4N 1S3 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Hershey milk drinks from Canada; Article 509 Dear Mr. Bellefeuille: In your letter dated July 6, 1999 you requested a ruling on the status of Hershey milk drinks from Canada under the NAFTA. Samples were included with your request. The subject merchandise consists of Hershey milk drinks, which will be imported in three flavors. Hershey Milkshake is stated to contain 44.43 percent milk, 24.8 percent sugar, a blend containing 30 percent chocolate, cocoa, modified milk ingredients, mono and diglycerides, salt and artificial flavor, and a blend containing 0.77 percent carrageenan, guar gum and xanthan gum. Hershey Double Chocolate Milkshake contains 43.4 percent milk, 24.8 percent sugar, a blend containing 30.9 percent chocolate, cocoa, modified milk ingredients, mono and diglycerides, salt and artificial flavor, a blend containing 0.76 percent carrageenan, guar gum and xanthan gum, and 0.14 percent artificial flavor. Hershey Cookies ‘n’ Creme Milkshake contains 50 percent milk, 48.2 percent sugar, a blend containing 1.11 percent cocoa, salt and ground vanilla beans, a blend containing 0.59 percent carrageenan, guar gum, color, and 0.10 percent artificial flavor. The milk is a product of Canada. The sugar is produced in Australia, Belize or Guatemala. The blend containing chocolate, cocoa, modified milk ingredients, mono and diglycerides, salt and artificial flavor is produced in the United States using U.S. ingredients, except for the chocolate which is produced in Holland, and the cocoa which may be from Holland or the U.S. The blends containing carrageenan, guar gum and xanthan gum and carrageenan, guar gum and color are products of the U.S., France or Canada. The blend containing cocoa, salt and ground vanilla beans is produced in Holland or the United States. Artificial flavors are products of the U.S. or Canada. It is our understanding that the Hershey milk drinks are produced in Canada by combining and processing the various ingredients. The subject merchandise will be imported in plastic bottles holding 350 milliliters. There are six bottles in a plastic wrapped package. The applicable tariff provision for the Hershey Milkshake, Hershey Double Chocolate Milkshake and Hershey Cookies ‘n’ Creme Milkshake will be 2202.90.1000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for waters…containing added sugar or other sweetening matter or flavored, and other non-alcoholic beverages…other: milk-based drinks: chocolate milk drink. The general rate of duty will be 17.5 percent ad valorem. Each of the non-originating materials used to make the Hershey Milkshake, Hershey Double Chocolate Milkshake and Hershey Cookies ‘n’ Crème Milkshake has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/22. The products will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. §1304), provides, in general, that all articles of foreign origin imported into the United States must be legibly, conspicuously, and permanently marked to indicate the English name of the country of origin to an ultimate purchaser in the United States. The implementing regulations to 19 U.S.C. §1304 are set forth in Part 134, Customs Regulations (19 C.F.R. Part 134). The samples you have submitted do not appear to be properly marked with the country of origin. You may wish to discuss the matter of country of origin marking with the Customs import specialist at the proposed port of entry. 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 John Maria at 212-637-7059. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division