CLA-2-15:OT:RR:NC:N2:231
Mr. Michael Corbett
Sunrise Foods International Inc
306 Queen Street, Suite 300 Saskatoon SK S7K 0M2 Canada
RE: The Tariff Classification and Country of Origin of a Sunflower and Canola Seed Oil Blend
Dear Mr. Corbett:
In your letter dated January 20, 2023, you requested a tariff classification and country of origin determination.
You have outlined a scenario in which organic sunflower seeds and organic canola seeds are harvested in Ukraine. In Ukraine, impurities are removed from the respective seeds and they are separately crushed, which results in unique sunflower and canola oils. The two oils from Ukraine are then separately transported to Turkey where they are refined, blended together, and placed in a bulk package for shipment to the United States. The Sunflower and Canola Seed Oil Blend is intended for use in frying and other food-grade applications.
You seek a determination as to the tariff classification and country of origin of the Sunflower and Canola Seed Oil Blend for marking purposes.
The applicable subheading for the Sunflower and Canola Seed Oil Blend will be 1517.90.2040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter...other...artificial mixtures of two or more of the products provided for in headings 1501 to 1515, inclusive...other...baking or frying fats...wholly of vegetable oils.” The rate of duty will be 8 percent ad valorem. 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.
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 to 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.
As provided in section 134.41(b), Customs Regulations [19 CFR 134.41(b)], country-of-origin marking is considered conspicuous if the ultimate purchaser in the United States is able to find the marking easily and read it without strain.
With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.
Part 134, CBP Regulations (19 C.F.R. §134) implements the country of origin marking requirements of 19 U.S.C. §1304. Title 19 C.F.R. §134.1(b) defines “country of origin” as follows:
[T]he 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 [the marking regulations]…
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. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993). 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).
Regarding the above-described Sunflower and Canola Seed Oil Blend, this office finds that the article is not substantially transformed due to the processing performed in Turkey. Accordingly, based on the information presented, the oil is a product of Ukraine for CBP country of origin and marking purposes.
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 the 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 Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division