MAR-2 OT:RR:NC:N2:232
Mr. Peter W. Klestadt
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt, LLP
599 Park Avenue, 36 th Floor
New York, NY 10022
RE: THE COUNTRY OF ORIGIN MARKING OF CHOCOLATE ROSES AND OTHER SHAPES
Dear Mr. Klestadt:
In your letter dated December 7, 2018, on behalf of your client, R.L. Albert & Son, Inc. (“R.L. Albert”), you requested a ruling confirming the country of origin of imported chocolate roses (and other shapes) described herein. Descriptive literature was submitted with your letter for review.
The subject articles are chocolates in the shape of long-stem roses and tulips with plastic “stems,” heart “pops” on sticks akin to a lollipop, Champagne bottles, snowmen, Santa Claus, and other novelty shapes. The chocolates are wrapped in decorative colored foil to resemble the flower or other motif. The chocolates are sold individually, either in the clear plastic with an attached “To/From” gift card, or encased in paper boxes featuring a clear display window and printed with the item’s description and a warm sentiment.
To make the chocolate shapes described above, R.L. Albert purchases chocolate blocks or chips from a chocolate manufacturers in Belgium. The blocks or chips are shipped to China, where they are melted down. The melted chocolate is passed through a sieve; tempered (cooled enough for molding); and sent to a “dosing” machine, which dispenses the correct amount of melted chocolate into each flower (or other) shaped mold. Once the mold is set, the chocolate is cooled and then removed from the molds for packaging. No further ingredients are added to the chocolate before it is melted and molded; the essential physical and chemical characteristics of the chocolate are unchanged when compared to the finished chocolate roses. In addition, the processing of the chocolate block into novelty shapes does not change either the name of the use of the chocolate.
Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. § 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 to the ultimate purchaser in the United States the English name of the country of origin of the article. Congressional intent in enacting section 1304 was "that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods are the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will." United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302, C.A.D. 104 (1940).
Part 134, Customs and Border Protection ("CBP") Regulations (19 C.F.R. § 134), implements the country of origin marking requirements and the exceptions of 19 U.S.C. § 1304. Section 134.1(b), CBP Regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as the country of manufacture, production or growth of any article of foreign origin entering the United States. 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 the meaning of Part 134. A substantial transformation occurs when an article emerges from a manufacturing process with a name, character, and use that differs from the original material subjected to the processing. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (C.A.D. 98) (1940), National Juice Products v. United States, 10 CIT 48, 628 F. Supp. 978 (CIT 1986).
You contend that substantial transformation has not occurred as a result of the processing of the chocolate block or chips into chocolate roses or other shapes in China. We agree. In this case, we find that the chocolate roses and other shaped articles are products of Belgium for country of origin marking purposes. The packages of the imported chocolate may be marked “Product of Belgium.”
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 177).
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 Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division