OT:RR:NC:N2:228
Ms. Lana Wang
Success System Services
923 E. Valley Blvd., Suite108
San Gabriel, CA 91776
RE: The country of origin, application of a trade program or trade agreement, and Section 301 determination of dried green mung beans from Thailand
Dear Ms. Wang:
In your letter dated September 3, 2020, you requested a country of origin, and application of a trade program or trade agreement ruling on dried green mung beans, in addition to a Section 301 determination on behalf of your client, Jinlifu U.S.A. Inc., CA.
A description of the manufacturing process, and a manufacturing flow chart accompanied your letter.
The product is described as dried green mung beans that are said to be harvested and dried in Thailand, then shipped to China where they are cleaned, destoned, separated, polished, sorted and repackaged in bulk bags, 23 kg., net packed. After repacking, the dried mung beans are shipped to their final destination, the United States.
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 United States. 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 occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986).
In the present case, the cleaning, destoning, separating, polishing, and sorting of the dried mung beans in China does not constitute a substantial transformation. Accordingly, the country of origin of the dried green mung beans will be Thailand. Therefore, the duty under Section 301 of the Trade Act of 1974, as amended, does not apply to the articles subject to this ruling.
In your letter, you inquired about the application of a trade program or trade agreement. Articles classifiable under subheading, 0713.31.4000, Harmonized Tariff Schedule of the United States, (HTSUS), which are products of Thailand, may be entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations.
In general these requirements described under General Note 4(c), HTSUS, are that the eligible article be imported directly from a beneficiary developing country (BDC) into the customs territory of the United States, and that the sum of (1) the cost or value of the materials produced in the beneficiary developing country or any 2 or more countries which are members of the same association of countries which is treated as one country under section 507(2) of the Trade Act of 1974, plus (2) the direct costs of processing operations performed in such beneficiary developing country or such member countries is not less than 35 percent of the appraised value of such article at the time of its entry into the customs territory of the United States.
Please note, that even though the country of origin of the dried green mung beans is Thailand, in this case, the shipment is not directly imported from Thailand into the United States, therefore rendering it ineligible for preferential tariff treatment under the GSP Agreement.
The GSP is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term “GSP”.
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 Timothy Petrulonis at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division