H313454

U.S. Department of Homeland Security Washington, DC 20229 U.S. Customs and Border Protection HQ H313454 February 4, 2021 OT:RR:CTF:FTM H313454 MJD CATEGORY: Classification; Origin TARIFF NO.: 2106.90.94; 2106.90.95; 2106.90.97 Mr. Anthony Parlatore Blending Sales Manager Redpath Sugar Ltd. 95 Queen’s Quay East Toronto, ON M5E 1A3 Canada RE: Drink mixes; Tariff classification; Country of origin marking; USMCA Dear Mr. Parlatore, This is in response to your correspondence, dated August 17, 2020, in which you request a binding ruling, on behalf of Redpath Sugar Ltd. (“Redpath”), concerning the tariff classification of drink mixes under the Harmonized Tariff Schedule of the United States (“HTSUS”), and the country of origin marking and eligibility of these drink mixes for preferential tariff treatment under the United States-Mexico-Canada Agreement (“USMCA”). Your request, submitted as an electronic ruling request, was forwarded to this office from the National Commodity Specialist Division for review. Our ruling is set forth below. You have asked that certain information submitted in connection with this request be treated as confidential, pursuant to 19 C.F.R. § 177.2(b)(7). The request for confidentiality is approved. Information concerning the specific formulations (percentage ratios) of the ingredients in the drink mixes contained in the request will not be released to the public. FACTS: The products at issue consist of the following five dry powdered drink mixes: lemonade, orange, fruit punch, grape, and lemon tea. The drink mixes are composed of several ingredients from various countries that are blended together in Canada. Below is a list of the ingredients for each drink mix and the country from which those ingredients are sourced and their classification under the HTSUS: Lemonade: Ingredient Country of Origin HS Code      Sugar Brazil 1701.99.10  Citric Acid Canada 2918.14.00  Sodium Citrate Canada 2918.15.20  Beatreme Mexico 3302.10.90  Lemon Flavor United States 3302.10.10  Silicon Dioxide United States 2811.22.00  Ascorbic Acid China 2936.27.00  FD&C Yellow #5 colour United States 3203.00.20   Orange: Country of Origin HS Code  Ingredient    Sugar Brazil 1701.99.10  Citric Acid Canada 2918.14.00  Sodium Citrate Canada 2918.15.20  Beatreme Mexico 3302.10.90  Lemon Flavor United States 3302.10.10  Silicon Dioxide United Sates 2811.22.00  Ascorbic Acid China 2936.27.00  FD&C Yellow #5 United States 3203.00.20  FD&C Yellow #6 United States 3203.00.20  FD&C Yellow #6 lake United States 3203.00.20   Fruit Punch: Country of Origin HS Code  Ingredient    Sugar Brazil 1701.99.10  Citric Acid Canada 2918.14.00  Sodium Citrate Canada 2918.15.20  Beatreme Mexico 3302.10.90  Punch Flavor United States 3302.10.10  Silicon Dioxide United States 2811.22.00  Ascorbic Acid China 2936.27.00  FD&C Red #40 colour United States 3203.00.20  FD&C Red #40 lake United States 3203.00.20   Grape: Country of Origin HS Code  Ingredient    Sugar Brazil 1701.99.10  Citric Acid Canada 2918.14.00  Sodium Citrate Canada 2918.15.20  Grape Dried Crystals United States 0806.20.90  Grape Flavor United States 3302.10.10  Silicon Dioxide United States 2811.22.00  Ascorbic Acid China 2936.27.00  FD&C Red #40 colour United States 3203.00.20  FD&C Blue #1 colour United States 3203.00.20   Lemon Tea: Country of Origin HS Code  Ingredient    Sugar Brazil 1701.99.10  Caramel Colour United States 3204.19.90  Citric Acid United States 2918.14.00  Sodium Citrate Israel 2918.15.20  Lemon Flavor United States 3302.10.10  Tea Flavor United States 3302.10.10  Silicon Dioxide United States 2811.22.00  Ascorbic Acid China 2936.27.00  Tricalcium Phosphate Israel 2835.26.90   The drink mixes are produced in 2,200 lb. batches in a ribbon blender. Each drink mix is composed of raw cane sugar imported into Canada from Brazil where it is further refined. One by one the sugar and other ingredients are added to the blender where they are mixed together for ten minutes until the blend is made into the drink mix. The final product for each drink mix contains more than 65 percent by dry weight of sugar. The drink mix is then tested for color, brix, and taste. Once approved by the laboratory, the drink mix is prepared and shipped to the United States. The following are three shipment scenarios for the drink mixes: Scenario 1 Blended in Canada and packaged in 2,200 lb supersacks. These supersacks will be shipped to a co-manufacturer in the United States where they will discharge the supersack into their hopper. The product will be filled in fibre canisters or 2 lb pillow pouches, packaged 6 per case, palletized and shipped for sale in the United States to the retail market. Scenario 2 Blended and packaged in Canada. The blended product will be discharged into a hopper where it is gravity fed to the filler. The product will be filled in fibre canisters or 2 lb pillow pouches, packaged 6 per case, palletized and shipped for sale in the United States to the retail market. Scenario 3 Blended and packaged in Canada. The blended product will be discharged into a hopper where it is gravity fed to the filler. The product will be filled in fibre canisters or 2 lb pillow pouches, packaged 6 per case, palletized and shipped for sale in the United States to the foodservice industry (camps, amusement parks & restaurants). To consume the drink mix beverage, the contents of the mix are emptied in a container, and cold water is added according to the instructions on the drink mix. ISSUES: What is the tariff classification of the drink mixes? What is the country of origin marking of the drink mixes? Whether the drink mixes imported into the United States from Canada are eligible for preferential tariff treatment under the USMCA? LAW AND ANALYSIS: Tariff Classification Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The 2020 HTSUS provisions under consideration are as follows: 2106: Food preparations not elsewhere specified or included: 2106.90: 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: 2106.90.9200: Described in additional U.S. note 7 to chapter 17 and entered pursuant to its provisions. . . 2106.90.9400: Other. . . Articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17: 2106.90.9500: Described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. . . 2106.90.9700: Other. . . * * * * * Additional U.S. Note 2 to Section IV provides, in relevant part, as follows: 2. For the purposes of this section, unless the context otherwise requires— … (c) the term “prepared for marketing to the ultimate consumer in the identical form and package in which imported” means that the product is imported in packaging of such sizes and labeling as to be readily identifiable as being intended for retail sale to the ultimate consumer without any alteration in the form of the product or its packaging; and (d) the term “ultimate consumer” does not include institutions such as hospitals, prisons and military establishments or food service establishments such as restaurants, hotels, bars or bakeries. Additional U.S. Note 2 to Chapter 17 provides as follows: For the purposes of this schedule, the term “articles containing over 65 perc

Tariff ClassificationClassification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The 2020 HTSUS provisions under consideration are as follows:2106: Food preparations not elsewhere specified or included:2106.90: Other: Other: Other: Other: Other: Articles containing over 65 percent by dry weight of sugar described in additional U.S. note 2 to Chapter 17:2106.90.9200: Described in additional U.S. note 7 to chapter 17 and entered pursuant to its provisions. . .2106.90.9400: Other. . . Articles containing over 10 percent by dry weight of sugar described in additional U.S. note 3 to chapter 17: 2106.90.9500: Described in additional U.S. note 8 to chapter 17 and entered pursuant to its provisions. . . 2106.90.9700: Other. . . * * * * *Additional U.S. Note 2 to Section IV provides, in relevant part, as follows: 2. For the purposes of this section, unless the context otherwise requires—… (c) the term “prepared for marketing to the ultimate consumer in the identical form and package in which imported” means that the product is imported in packaging of such sizes and labeling as to be readily identifiable as being intended for retail sale to the ultimate consumer without any alteration in the form of the product or its packaging; and(d) the term “ultimate consumer” does not include institutions such as hospitals, prisons and military establishments or food service establishments such as restaurants, hotels, bars or bakeries.Additional U.S. Note 2 to Chapter 17 provides as follows: For the purposes of this schedule, the term “articles containing over 65 percent by dr