CLA-2-21:OT:RR:NC:N2:228
Mr. Chathura Jayanga Abeyratne
Joint Agri Products Ceylon (Pvt) Ltd
No 333B, Weboda Road
Delgoda 11700
Sri Lanka
RE: The tariff classification and country of origin of coconut milk from Sri Lanka
Dear Mr. Abeyratne:
In your letter dated May 27, 2020, you requested a tariff classification and country of origin ruling on behalf of your client, Brad’s Organic, LLC, NY.
An ingredients breakdown, a manufacturing flowchart, and a photocopy of the packaging were provided with your inquiry.
The two coconut milk products, containing approximately 11 percent fat and 18 percent fat, each consist of approximately 49 percent raw coconut milk, 49 percent water, and 2 percent guar gum. The products are used as an ingredient in food preparation for human consumption. The coconut milk will be imported in 400 ml cans, net packed and will be repacked into corrugated boxes for importation into the United States.
The applicable subheading for the coconut milk products will be 2106.90.9890, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included…other…other …canned. The general rate of duty will be 6.4 percent ad valorem.
You inquire as to the country of origin of the coconut milk products from Sri Lanka. The coconut milk ingredients are sourced and processed in Sri Lanka, packaged in retail packages, and shipped to 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.
As defined in 19 CFR 134.1(b), "country of origin" means 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 change the country of origin of the article. A substantial transformation is said to occur when, after further processing or manufacture, an article emerges having a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F. 2d 778 (1982).19 CFR 134.35 and Headquarters Ruling Letters (HRLs) 555982, dated August 2, 1991.
However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
In the present case, the country of origin of the finished coconut milk products is Sri Lanka. As defined in 19 CFR 134.1(b), it is the country of growth of the products of foreign origin entering the U.S.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
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 177 of the Customs Regulations (19 C.F.R. 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 Josephine Heaning at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division