H312439

HQ H312439 September 23, 2020 OT:RR:CTF:VS H312439 EE CATEGORY: Classification Mr. Harold C. Averill Parker & Company P.O. Box 271 4694 Jaime Zapata Ave. Brownsville, TX 78522 RE: Instant Chai Teas; USMCA Dear Mr. Averill: This is in response to your correspondence, dated July 16, 2020, in which you request a ruling concerning the eligibility of certain instant chai teas for duty-free treatment under the United States-Mexico-Canada Agreement. FACTS: The subject merchandise is described as instant chai teas under the brand name “Tea India.” There are four varieties of sweetened teas and one unsweetened tea under the product name “Chai Moments.” Chai Moments Ginger Chai sweetened tea contains 55 to 60 percent cane sugar, 12 to 14 percent whole milk powder, 11 to 13 percent skim milk powder, 6 to 7 percent black tea extract, 4 to 5 percent chicory root inulin, 1 to 2 percent ginger flavor, and 1 to 2 percent ginger spice powder. The cane sugar, whole milk powder, skim milk powder, and ginger flavor are products of the United States. The total dry weight of sugar is said to be 59.86 percent. The non-originating ingredients of the Chai Moments Ginger Chai are as follows: Ingredient Origin HTSUS Classification  Black Tea Extract Kenya 2101.20.20  Chicory Root Inulin Belgium 1108.20.00  Ginger Spice Powder China, India or Nigeria 2106.90.09  Cane Sugar United States 1701.99.50  Whole Milk Powder United States 0402.10.00  Skim Milk Powder United States 0402.10.00  Ginger Flavor United States 2106.90.09   Chai Moments Matcha Latte sweetened tea contains 55 to 60 percent cane sugar, 17 to 19 percent non-dairy creamer, 10 to 12 percent malted milk powder, 4 to 6 percent matcha green tea, 4 to 6 percent skim milk powder, 3 to 5 percent whole milk powder, 1 to 2 percent green tea matcha flavor, and less than 1 percent of pectin and tara gum. The cane sugar, non-dairy creamer, malted milk powder, skim milk powder, whole milk powder, and green tea matcha flavor are products of the United States. The total dry weight of sugar is said to be 55.25 percent. The non-originating ingredients of the Chai Moments Matcha Latte are as follows: Ingredient Origin HTSUS Classification  Matcha Green Tea Japan 0902.10.10  Pectin Mexico, China or Spain 1302.20.00  Tara Gum Peru 1302.20.00  Cane Sugar United States 1701.99.50  Non Dairy Creamer United States 2106.90.09  Malted Milk Powder United States 2106.90.09  Skim Milk Powder United States 0402.10.00  Whole Milk Powder United States 0402.10.00  Green Tea Matcha Flavor United States 2106.90.09   Chai Moments Plain Chai sweetened tea contains 55 to 60 percent cane sugar, 14 to 16 percent whole milk powder, 11 to 13 percent skim milk powder, 6 to 8 percent black tea extract, and 9 to 11 percent chicory root inulin. The cane sugar, whole milk powder, and skim milk powder are products of the United States. The total dry weight of sugar is said to be 56.39 percent. The non-originating ingredients of the Chai Moments Plain Chai are as follows: Ingredient Origin HTSUS Classification  Black Tea Extract Kenya 2101.20.20  Chicory Root Inulin Belgium 1108.20.00  Cane Sugar United States 1701.99.50  Whole Milk Powder United States 0402.10.00  Skim Milk Powder United States 0402.10.00   Chai Moments Ginger Turmeric sweetened tea contains 55 to 65 percent cane sugar, 12 to 14 percent whole milk powder, 11 to 13 percent skim milk powder, 5 to 6 percent black tea extract, 5 to 6 percent chicory root inulin, 1 to 2 percent ginger flavor, less than 1 percent of ginger spice powder, turmeric spice powder, cinnamon spice powder, and pepper spice powder. The cane sugar, whole milk powder, skim milk powder, and ginger flavor are products of the United States. The total dry weight of sugar is said to be 59.45 percent. The non-originating ingredients of the Chai Moments Ginger Turmeric are as follows: Ingredient Origin HTSUS Classification  Black Tea Extract Kenya 2101.20.20  Chicory Root Inulin Belgium 1108.20.00  Ginger Spice Powder China, India or Nigeria 2106.90.09  Turmeric Spice Powder India 2106.90.09  Cinnamon Spice Powder Vietnam 2106.90.09  Pepper Spice Powder India, Indonesia, Malaysia or Vietnam 2106.90.09  Cane Sugar United States 1701.99.50  Whole Milk Powder United States 0402.10.00  Skim Milk Powder United States 0402.10.00  Ginger Flavor United States 2106.90.09   Chai Moments Unsweetened Masala tea contains 45 to 50 percent whole milk powder, 35 to 40 percent chicory root inulin, 8 to 10 percent black tea extract, 1 to 2 percent cinnamon spice powder, and less than 1 percent of clove spice powder, ginger spice powder, cardamom spice powder, and pepper spice powder. The whole milk powder is a product of the United States. The non-originating ingredients of the Chai Moments Unsweetened Masala are as follows: Ingredient Origin HTSUS Classification  Chicory Root Inulin Belgium 1108.20.00  Black Tea Extract Kenya 2101.20.20  Cinnamon Spice Powder Vietnam 2106.90.09  Clove Spice Powder Brazil, Comoros, Indonesia, Madagascar, Vietnam or Zanzibar 2106.90.09  Ginger Spice Powder China, India, or Nigeria 2106.90.09  Cardamom Spice Powder Guatemala, Honduras or India 2106.90.09  Pepper Spice Powder India, Indonesia, Malaysia or Vietnam 2106.90.09  Whole Milk Powder United States 0402.10.00   You state that all ingredients will be shipped to Mexico where they will be manufactured into instant chai tea products. They are then packaged into individual units (sticks) varying from 12.5g to 25g. These individual packages are then packaged in boxes of either 10 or 20 units each. Both are then bulk packed in master cartons of 6 each. The boxes that have 10 sticks each will be put up for retail sale. The boxes with 20 sticks will be sold as individual single serve per stick. The product is steeped in a cup of hot water to make a beverage. The Chai Moments Ginger Chai, Chai Moments Matcha Latte, Chai Moments Plain Chai, and Chai Moments Ginger Turmeric are classified under subheading 2101.20.58, Harmonized Tariff Schedule of the United States (“HTSUS”), if the quantitative limits of Additional U.S. Note 8 to Chapter 17 have been reached. The Chai Moments Unsweetened Masala is classified under subheading, 2101.20.90, HTSUS. ISSUE: Whether the instant chai teas classified under subheadings 2101.20.58 or 2101.20.90, HTSUS, imported into the United States from Mexico are eligible for duty-free treatment under the United States-Mexico-Canada Agreement. LAW AND ANALYSIS: The United States-Mexico-Canada Agreement (“USMCA”) was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). GN 11 of the HTSUS implements the USMCA. GN 11(a) provides: Goods that originate in the territory of Mexico, Canada or the United States (hereinafter referred to as “USMCA country” or “USMCA countries” as further defined in subdivision (l)(xxiv) of this note) under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury (including Uniform Regulations provided for in the USMCA), and goods enumerated in subdivision (p) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S” in parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; and Goods that originate in the territory of a USMCA country under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury, when such goods are imported into 

The United States-Mexico-Canada Agreement (“USMCA”) was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). GN 11 of the HTSUS implements the USMCA. GN 11(a) provides: Goods that originate in the territory of Mexico, Canada or the United States (hereinafter referred to as “USMCA country” or “USMCA countries” as further defined in subdivision (l)(xxiv) of this note) under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury (including Uniform Regulations provided for in the USMCA), and goods enumerated in subdivision (p) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S” in parentheses, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act; andGoods that originate in the territory of a USMCA country under the terms of subdivision (b) of this note and regulations issued by the Secretary of the Treasury, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn, followed by the symbol “S+” in parentheses, or under a subheading whose article description provides for originating goods of one or more USMCA countries, as the case may be, are eligible for such duty rate, in accordance with section 202 of the United States-Mexico-Canada Agreement Implementation Act.GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:For the purposes of this note, a good imported into the customs territory of the United