MAR-2 OT:RR:NC:SP:231
Mr. Harold Averill
Corrigan Dispatch Company
Box 3610
Brownsville, Texas 78523-3610
RE: COUNTRY OF ORIGIN MARKING AND TARIFF CLASSIFICATION OF IMPORTED SHRIMP FROM MEXICO; ARTICLE 509
Dear Mr. Averill:
This is in response to your letter dated September 3, 2008, submitted on behalf of AMA Packing (Brownsville, TX), requesting a ruling on the tariff classification and 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.
You have outlined a scenario in which U.S.-origin headless and head-on frozen shrimp will first be exported from the U.S. to Mexico to undergo processing. In Mexico, the shrimp will undergo the following:
Headless shrimp will be peeled, deveined and packaged in packaging of approximately 3 to 5 pounds per container. The package is then frozen and consolidated for shipment.
Headless shrimp is sliced down the back, deveined, and the shell left on. The shrimp is then packaged approximately 3 to 5 pounds per container. The package is then frozen and consolidated for shipment.
Head-on shrimp will be peeled, deveined and packaged in packaging of approximately 3 to 5 pounds per container. The package is then frozen and consolidated for shipment.
Head-on shrimp is sliced down the back, deveined, and the shell left on, then packaged approximately 3 to 5 pounds per container. The package is then frozen and consolidated for shipment.
In all cases above, the tail can either be left on or removed depending on the request of the client.
Following the above-described operations in Mexico, the processed goods will be imported into the United States.
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 to 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.
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 shrimp 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 shrimp 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 shrimp are goods of the United States for marking purposes, and that they therefore need not be marked with their country of origin. The question of whether they may be marked to indicate that they are products of the U.S.A. is under the jurisdiction of the Federal Trade Commission (FTC), Division of Enforcement, which may be contacted at 6th and Pennsylvania Avenue, NW, Washington, D.C. 20580, for further information.
The applicable subheading for the imported frozen shrimp, after processing in Mexico by any of the above-listed methods, will be 0306.13.00, Harmonized Tariff Schedule of the United States (HTSUS), which provides for crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine…: frozen: shrimps and prawns. (The applicable statistical suffix will depend on whether the shrimps are peeled, and/or their count size, as specified in the HTSUS.) The rate of duty will be Free. (Under the “NAFTA preference override,” as set forth in section 102.19 of the Customs Regulations, the country of origin for duty/entry purposes will be Mexico.)
This merchandise may be subject to additional requirements administered by the following agencies, whose addresses are provided for your reference:
U.S. Department of State
Bureau of Oceans & Int’l. Environmental & Scientific Affairs
Office of Marine Conservation
2201 C Street, NW
Washington, DC 20520
Telephone: (202) 647-2335
U.S. Food and Drug Administration (FDA)
5600 Fishers Lane
Rockville, MD 20857
Telephone: (301) 443-6553
U.S. Department of Agriculture (USDA)
APHIS, VS, NCIE
Products Program
4700 River Road, Unit 40
Riverdale, MD 20737-1231
Telephone: (301) 734-3277
U.S. Department of Agriculture (USDA)
Agricultural Marketing Service (AMS)
1400 Independence Avenue, SW
Washington, D.C. 20250
Telephone: (202) 720-8998
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the Food and Drug Administration (FDA). Information on the Bioterrorism Act can be obtained by calling FDA at 301-575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.
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 Nathan Rosenstein at (646) 733-3030.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division