CLA-2-03:OT:RR:NC:N5:231
Rod Flegenheimer
Flegenheimer International Inc
227 W Grand Ave El Segundo, CA 90245
RE: The tariff classification and country of origin of Frozen Squid
Dear Mr. Flegenheimer:
In your letter dated June 23, 2023, you requested a tariff classification and country of origin determination ruling on behalf of your client, Channel Seafood International (Boca Raton, FL).
You have outlined a scenario in which whole, uncleaned, and frozen squid with the scientific name Doryteuthis pealeii (also known as Longfin inshore squid, Loligo pealei) of U. S. origin is harvested from the Food and Agriculture Organization (FAO) of the United Nations Major Fishing Area 21 (Atlantic - Northwest) then shipped to China. In the latter country, the squid will be thawed, cleaned, beheaded, gutted, and skinned. The cleaned tubes will either remain whole or cut into rings. The squid will be packed in various combinations such as tubes with tentacles, rings with tentacles, solely rings or tubes. The products will be blast frozen in 2.5-pound blocks, packed in polyurethane bags and heat sealed. The finished products will be packed four per each master carton and shipped to the United States for sale to restaurants, wholesale, and retail outlets.
You seek a determination as to the proper tariff classification and country of origin of the above-described product for marking purposes.
The applicable subheading for the Frozen Doryteuthis pealei (Loligo pealei) will be 0307.43.0024, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Molluscs, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine; smoked molluscs, whether in shell or not, whether or not cooked before or during the smoking process; flours, meals and pellets of molluscs, fit for human consumption: Cuttlefish and squid: Frozen squid: Other: Loligo pealei. The rate of duty will be Free.
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 at https://hts.usitc.gov/current.
The "country of origin" is defined in 19 CFR 134.1(b) 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 this part. When considering a product that may be subject to antidumping, countervailing, or other safeguard measures, the substantial transformation analysis is applied to determine the country of origin. See 19 C.F.R. § 102.0; HQ 563205, dated June 28, 2006; see also Belcrest Linens v. United States, 741 F.2d 1368, 1370-71 (Fed. Cir. 1984) (finding that “the term ‘product of’ at the least includes manufactured articles of such country or area” and that substantial transformation “is essentially the test used…in determining whether an article is a manufacture of a given country”).
The courts have held that 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); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). 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).
In the case of the above-described cleaned frozen squid, this office finds that the article is not substantially transformed by the processing that occurred in China. Accordingly, based on the information presented, the packages of squid are products of the United States for CBP marking purposes. Thus, since the packages of squid are not considered “foreign” products, they are not required to be marked with their country of origin for CBP purposes. The question of whether their labeling may consist of or include the phrase “Product of USA” is under the jurisdiction of the Federal Trade Commission (FTC), which may be contacted for advice at 1700 Pennsylvania Avenue, N.W., Washington, D.C. 20006.
Please note that seafood is subject to the Mandatory Country of Origin Labeling (“COOL”) requirements administered by the USDA’s Agricultural Marketing Service (AMS), we advise you to check with that agency for their further guidance on your scenario. Contact information for AMS is as follows:
USDA-AMS-LS-SAT
Room 2607-S, Stop 0254
1400 Independence Avenue, SW
Washington, DC 20250-0254
Tel. (202) 720-4486
Website: www.ams.usda.gov/COOL
Email address for inquiries: [email protected]
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 and Border Protection 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, please contact National Import Specialist Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division