MAR-2-05 CO:R:C:V 734281 NL
Ms. Amy Peng
Western Overseas Trade & Development Corp.
1210 Jefferson Street # C
Anaheim, CA 92807
RE: Country of Origin Marking - Preserved Mushrooms; section
1907 Omnibus Trade and Competitiveness Act of 1988 (Pub. L.
No. 100-418); Country of Growth.
Dear Ms. Peng:
This is in response to your inquiry of July 22, 1991, in
which you request information concerning the requirements for
marking the country of origin of canned mushrooms.
FACTS:
At the direction of U.S. Customs officials at the port of
Jacksonville, Florida, Western Overseas Trade and Development has
prepared new labels for canned mushrooms to indicate that the
product was grown in China. Jacksonville Customs has advised
this office that Western and several other importers had imported
canned mushrooms which were marked simply, "Product of Hong
Kong".
The new labels have been submitted to this office for a
determination whether the markings comply with the requirements
of section 304 of the Tariff Act of 1930, as amended (19 U.S.C.
1304). The "Storm King" brand label is marked "Product of Hong
Kong", while after the statement of ingredients appear the words,
"(Grown in China)". The "Celebrity" brand label also provides
the same formulation: "Product of Hong King"/ "(Grown in China)".
ISSUE:
What terminology is required or permissible under the Tariff
Act to designate the country of origin of canned mushrooms?
LAW AND ANALYSIS:
As provided at 19 U.S.C. 1304, every article of foreign
origin imported into the U.S. must be marked so as to indicate
the English name of its country of origin to the ultimate
purchaser in the U.S. Part 134, Customs Regulations (19 CFR Part
134), implements the country of origin marking requirements and
exceptions of 19 U.S.C. 1304. "Country of origin" is defined at
19 CFR 134.1(b) as the country in which the imported article was
manufactured, produced, or grown. Further work or material added
in a second country must effect a substantial transformation in
order to render the second country the "country of origin". A
substantial transformation is said to occur if, as a result of
manufacture or further processing, an article having a different
name, character, or use emerges.
A recent enactment establishes specific marking requirements
for preserved mushrooms. Section 1907(b) of the Omnibus Trade
and Competitiveness Act of 1988, Pub. L. No. 100-418, provides:
MARKING OF CONTAINERS OF IMPORTED MUSHROOMS - Imported
preserved mushrooms shall not be considered to be in
compliance with section 304 of the Tariff Act of 1930
(19 U.S.C. 1304) or any other law relating to the
marking of imported articles unless the containers
therof indicate in English the country in which the
mushrooms were grown.
A review of the legislative history indicates that this provision
was intended to specify marking requirements for mushrooms grown
in the People's Republic of China which were cooked and then
saturated with a heavy salt solution. After importation into the
U.S. in large containers the mushrooms were being washed and
desalted before canning by domestic firms.
In our opinion the effect of section 1907 of the 1988 Trade
Act is to specify that irrespective of further processing, the
country where mushrooms are grown is the country of origin for
purposes of 19 U.S.C. 1304. Thus, notwithstanding additional
preservative steps performed on the mushrooms incident to canning
or otherwise packing them, the marking, "Grown in ___" is the
required indication of origin pursuant to section 304. It
follows that if mushrooms are grown in China, marking the labels
on their containers "Product of Hong Kong" is not acceptable, the
term "product of" being reserved under section 304 for
indications of country of origin.
To the extent that these labels make reference to Hong Kong,
it would be acceptable to state that the mushrooms are packed in
Hong Kong. It is our understanding that this marking is required
under regulations of the Food and Drug Administration. For
purposes of section 304, however, in view of section 1907 of the
1988 Trade Act, the marking "packed in" cannot be regarded as
sufficient indication of country of origin for preserved
mushrooms.
HOLDING:
The sample labels properly indicate China as the country of
growth of the canned mushrooms as required by section 1907 of the
1988 Trade Act. The country of growth is the country of origin
for purposes of section 304 of the Tariff Act. The marking
"product of Hong Kong" is inaccurate and not acceptable.
Sincerely,
John Durant, Director
Commercial Rulings Division