The tariff classification and status under the North American Free Trade Agreement (NAFTA) of food ingredients from Mexico; Article 509

N249620 February 19, 2014 CLA-2-21:OT:RR:NC:N2:228 CATEGORY: Classification TARIFF NO.: 2106.90.9400 Ms. Elyssa Emsellem Neville Peterson LLP 17 State Street – 19th Floor New York, NY 10004 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of food ingredients from Mexico; Article 509 Dear Ms. Emsellem: In your letter dated January 14, 2014, you requested a ruling on classification and status of food ingredients from Mexico under the NAFTA on behalf of General Mills, Inc., Minneapolis, Minnesota. Ingredient information for three blended products accompanied your inquiry. You state that each blend is comprised of 97.5 – 99.5 percent sugar plus 0.5 – 2.5 percent either dairy solids, non-fat dry milk, or potassium chloride, and the sugar blends are created for use in General Mills products. After importation into the United States, the blends are combined with other ingredients, and used in the preparation of cake mixes and other consumer products. In all three of the blends, the sugar will be a product of the United States or Mexico, and the added milk solids, non-fat dry milk, or potassium chloride will be products of the United States. These materials will be sent separately to a blending facility in Mexico, where the ingredients will be blended to formula, and the resulting mixtures packed in bulk for return to the United States. The applicable subheading for all three blends will be 2106.90.9400, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included … other … other … other … other … 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 28.8 cents per kilogram plus 8.5 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/. 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. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United 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…. Based on the facts provided, the goods described above are eligible for NAFTA preferential duty treatment because they meet the requirements of HTSUS General Note 12 (b)(i). 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 301-575-0156, or at the Web site ww.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 Bruce N. Hadley, Jr. at (646) 733-3029. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division