CLA-2:OT:RR:NC:N5:232
Mr. Yunming Gu
Wismettac Asian Foods, Inc.
13409 Orden Drive
Santa Fe Springs, CA 90670
RE: The tariff classification of Yuzu Extract from Japan
Dear Mr. Gu:
In your letter dated June 30, 2023, you requested a tariff classification and country of origin ruling. A product specification sheet, ingredients list, manufacturing processing flow chart, and photographs were included with your request.
The subject merchandise is Yuzu Extract. The raw material of Yuzu extract is the juice and zest of 80 percent South Korean and 20 percent Japanese Yuzus, round, yellowish citrus fruit, which is stored at a temperature of -18℃. After thawing, the zest and juice undergoes inspection and measurement, and is then filtered by sieve machine. Foreign matter is removed by 10000 gauss magnet strain and 60mesh catch net. Then it is heated by a heater to a temperature of 80-85℃ and filled into bottles. After visual measurement of the internal capacity of the bottle, it is closed. After the last round of visual foreign matter inspection, the bottles are labeled, and packed into outer cartons. You have stated that the Brix value of Yuzu Extract is approximately 2.7 degrees.
Yuzu Extract will be imported into the United States in bulk cardboard boxes containing 12 bottles of 200 ml each, and with a gross weight of 7.1kg per carton. Yuzu Extract is sold mainly to Asian restaurants and supermarkets in bulk form and found in the seasoning section of supermarkets.
The applicable subheading for the Yuzu Extract will be 2009.31.6060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Fruit or nut juices (including grape must and coconut water) and vegetable juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter…juice of any other single fruit…of a Brix value not exceeding 20…other…concentrated.” The general rate of duty will be 7.9 cents per liter.
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.”
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).
Customs has consistently held that blending a product from one country with the same product of another country does not constitute a substantial transformation. As such, we find in this case that the processing procedure does not alter the essential character of the Yuzu Extract, and therefore the product does not become a new article of commerce. Rather, the bottled Yuzu Extract retains the fundamental character as well as the name and use of the initial product.
Since the Yuzu Extract is not substantially transformed as a result of the processing and bottling that is performed in Japan, when the product is imported to the United States the marking must reflect the country where the Yuzu Extract’s yuzus originated. The marking for the Yuzu Extract at issue should therefore be, “Product of South Korea and Japan, Packed in Japan.” Note that if at any time the Yuzu Extract should be harvested in a country other than South Korea and Japan, then the name(s) of that country must similarly and also be included in the “Product of” portion of the marking.
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.
This merchandise is subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (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 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 questions regarding the above, contact National Import Specialist Frank Troise at [email protected].
Sincerely,
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division