NY a85996: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Iced Tea Mixes from Mexico; Article 509

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            NY A85996

                         August 19, 1996

CLA-2-21:RR:NC:FC:232 A85996  

CATEGORY:      Classification

TARIFF NO.:    2101.20.5400; 2101.20.5800  

Mr. John B. Pellegrini
Ross & Hardies
Park Avenue Tower
65 East 55th Street
New York, New York 10022-3219



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

Dear Mr. Pellegrini:

     In your letter dated July 23, 1996, on behalf of 4C Foods
Corporation, you requested a ruling on the status of Iced Tea
Mixes from Mexico under the NAFTA.

     The subject merchandise is stated to contain 66.92 percent
sugar, 22.3 percent instant tea, 7.75 percent citric acid and
3.11 percent lemon flavoring and coloring.  The instant tea in
Blend A and Blend B will be produced in the United States and the
instant tea in Blend C and Blend D will be produced in Chile or
India.  The sugar in Blend A and Blend C will be produced in
Mexico and the sugar in Blend B and Blend D will be produced in
non-NAFTA countries.  All of the other ingredients in each blend
are produced in the United States.      

     The applicable tariff provision for the Blend A and Blend B
Iced Tea Mixes will be 2101.20.5800, Harmonized Tariff Schedule
of the United States Annotated (HTSUSA), which provides for
Extracts, essences and concentrates, of tea or mate, and
preparations with a basis of these extracts, essences or
concentrates or with a basis of tea or mate...articles containing
over 10 percent by dry weight of sugar described in additional
U.S. note 3 to chapter 17...other.  The general rate of duty will
be 34.1 cents per kilogram plus 9.5 percent ad valorem.

     The Blend A Iced Tea Mix, being wholly obtained or produced
entirely in the territory of Mexico and the United States, will
meet the requirements of HTSUSA General Note 12(b)(i).  The non-
originating material used to make the Blend B Iced Tea Mix has
satisfied the changes in tariff classification required under
HTSUSA General Note 12(t)/21.  Noting 102.19(b) these products
are goods of Mexico for duty purposes, classifiable in subheading
2101.20.5800 entered under the terms of general note 12 of the
Harmonized Tariff Schedule of the United States, and imported in
quantities that fall within the quantitative limits described in
note 20 to subchapter 6 of chapter 99, HTS, will be free of duty
pursuant to subheading 9906.21.07.  If the quantitative limits of
note 20 to subchapter 6 of chapter 99 have been reached, and if
the product is valued not over 28.3 cents per kilogram, it will
be dutiable at the rate of 23.9 cents per kilogram in subheading
9906.21.08, HTS.  If valued over 28.3 cents per kilogram, the
rate of duty will be 84.2 percent ad valorem, pursuant to
subheading 9906.21.09, HTS, upon compliance with all applicable
laws, regulations and agreements.  

     The applicable subheading for Blend C and Blend D Iced Tea
Mixes, if imported in quantities that fall within the limits
described in additional U.S. note 8 to chapter 17, will be
2101.20.5400 Harmonized Tariff Schedules of the United States
(HTS), which provides for Extracts, essences and concentrates, of
tea or mate, and preparations with a basis of these extracts,
essences or concentrates or with a basis of tea or mate...other
...articles containing over 10 percent by dry weight of sugar
described in additional U.S. note 3 to chapter 17...described in
additional U.S. note 8 to chapter 17 and entered pursuant to its
provisions.  The rate of duty will be 10 percent ad valorem.  If
the quantitative limits of additional U.S. note 8 to chapter 17
have been reached, the product will be classified in subheading
2101.20.5800, HTS, and dutiable at the rate of 34.1 cents per
kilogram plus 9.5 percent ad valorem.  In addition, products
classified in subheading 2201.20.5800, HTS, will be subject to
additional duties based on their value, as described in
subheadings 9904.17.49 to 9904.17.56, HTS.
      
     Blend C and Blend D Iced Tea Mixes do not qualify for
preferential treatment under the NAFTA because the non-
originating materials used in the production of the goods will
not undergo the change in tariff classification required by
General Note 12(t)/21, HTSUSA.

     Your inquiry also requests a ruling on the country of origin
marking requirements for an imported article which is processed
in a NAFTA country prior to being imported into the U.S.  A
marked sample was not submitted with your letter for review.

     The marking statute, section 304, Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides that, unless excepted, every
article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly
and permanently as the nature of the article (or its container)
will permit, in such a manner as to indicate the ultimate
purchaser in the U.S. the English name of the country of origin
of the article.  Part 134, Customs Regulations (19 CFR Part 134)
implements the country of origin marking requirements and
exceptions of 19 U.S.C. 1304. 

     The country of origin marking requirements for a "good of a
NAFTA country" are also determined in accordance with Annex 311
of the North American Free Trade Agreement ("NAFTA"), as
implemented by section 207 of the North American Free Trade
Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057)
(December 8, 1993) and the appropriate Customs Regulations.  The
Marking Rules used for determining whether a good is a good of a
NAFTA country are contained in Part 102, Customs Regulations. 
The marking requirements of these goods are set forth in Part
134, Customs Regulations.

     Section 134.1(b) of the regulations, defines "country of
origin" as 

     the country of manufacture, production, or growth of
     any article of foreign origin entering the U.S. 
     Further work or material added to an article in another
     country must effect a substantial transformation in
     order to render such other country the "country of
     origin within this part; however, for a good of a NAFTA
     country, the NAFTA Marking Rules will determine the
     country of origin. (Emphasis added).

     Section 134.1(j) of the regulations, provides that the
"NAFTA Marking Rules" are the rules promulgated for purposes of
determining whether a good is a good of a NAFTA country.  Section
134.1(g) of the regulations, defines a "good of a NAFTA country"
as an article for which the country of origin is Canada, Mexico
or the United States as determined under the NAFTA Marking Rules. 
Section 134.45(a)(2) of the regulations, provides that a "good of
a NAFTA country" may be marked with the name of the country of
origin in English, French or Spanish.

     You state that the imported Iced Tea Mixes are processed in
a NAFTA country "Mexico" prior to being imported into the U.S. 
Since, "Mexico" is defined under 19 CFR 134.1(g), as a NAFTA
country, we must first apply the NAFTA Marking Rules in order to
determine whether the imported Iced Tea Mixes are goods of a
NAFTA country", and thus subject to the NAFTA marking
requirements.   

     Part 102 of the regulations, sets forth the "NAFTA Marking
Rules" for purposes of determining whether a good is a good of a
NAFTA country for marking purposes.  Section 102.11 of the
regulations, sets forth the required hierarchy for determining
country of origin for marking purposes.  

     Applying the NAFTA Marking Rules set forth in Part 102 of
the regulations to the facts of this case, we find that the
imported Blend A and Blend B Iced Tea Mixes are goods of the
United States for marking purposes, noting Section 102.11(b)(1)
and Section 102.19(b).  Therefore, Blend A and Blend B will not
require any country of origin marking for Customs purposes.  The
imported Blend C and Blend D Iced Tea Mixes are goods of Chile or
India, noting Section 102.11(b)(1).

     This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 CFR Part 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 212-466-5730.

     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
Service, 1301 Constitution Ave., NW, Franklin Court, Washington,
DC 20229.



                                        Sincerely,



                                        Roger J. Silvestri
                                        Director,
                                        National Commodity
                                        Specialist Division