MAR-2 RR:NC:2:231
Mr. Rocco Ruggiero
Ruggiero Seafood, Inc.
P.O Box 5369
Newark, NJ 07105
RE: COUNTRY OF ORIGIN OF IMPORTED CALAMARI (SQUID) THAT HAS
BEEN TENDERIZED IN THE UNITED STATES
Dear Mr. Ruggiero:
This is in response to your undated letter, received here on or about April 7, 2010, together with your supplementary letter dated May 24, 2010, requesting a country of origin ruling on certain calamari (squid) processed in the United States after importation from various countries (such as China, Vietnam, Thailand, India or Peru).
You have outlined a scenario in which packages of raw, cleaned, frozen calamari of foreign origin will be shipped to the United States. In the United States, the calamari will be defrosted and then subjected to a tenderization process. Following tenderization, the calamari will be reweighed, refrozen and repackaged. It will then be sold and consumed here in the United States.
The tenderization process entails placing the imported squid into a solution consisting of ice water mixed with salt, citric acid, sodium citrate, active oxygen, and potassium carbonate. The squid is kept at a temperature of 32 to 36 degrees Fahrenheit as it sits in the solution within a large tank for a period of 15 to 18 hours. Then it is thoroughly washed with clean water before being refrozen and repacked.
You have indicated that calamari imported from the aforementioned countries tends to be of inconsistent quality that sometimes fails to achieve parity with comparable domestic (U.S.) product. The tenderization process will attempt to improve quality and consistency to the point where the imported product will more closely match its domestic counterpart, thus enabling it to better satisfy the local market. Specifically, you state that the process, in addition to making the calamari more tender, will also impart greater visual appeal by giving the product a whiter and more plump appearance. However, you note that the tenderization process does not change the size or shape of the calamari or its status as a raw seafood product.
You ask whether, for marking purposes, the above-described U.S. processing will result in a change in the country of origin of the calamari from the original foreign-source country to the United States, thereby permitting the new packages of tenderized goods to be labeled “Product of USA.”
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. Pursuant to 19 CFR Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to a foreign article in the United States must effect a substantial transformation in order to render the final product a good of the U.S.
A substantial transformation occurs when a new and different article of commerce emerges from a process with a new name, character or use different from that possessed by the article prior to processing. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).
In this case, we find that the imported calamari is not substantially transformed by the tenderization process which it undergoes in the United States. The merchandise initially imported is frozen, raw squid. While the tenderized, repackaged product may have a somewhat improved texture and enhanced appearance, it is still frozen, raw squid. It is not clear whether the finished product will be marketed with a new modifier in its name (e.g., tenderized calamari), but this would not matter because the finished product remains essentially the same as the imported product. The use of the item is not changed as a result of the processing operation; it appears that end users will prepare and consume the calamari in the same way as non-tenderized product. The tenderization process does not impact the fundamental nature of the article, which has already been determined at the time of importation.
Accordingly, we find that, for purposes of 19 U.S.C. 1304, the imported calamari of the present case is not substantially transformed into a product of the U.S. by the post-importation processing, but remains a product of the foreign source country. Therefore, upon importation into the U.S., the certification procedures of 19 CFR 134.25 must be followed and, upon completion of domestic processing, the packages of finished calamari must be marked with the foreign country of origin of their contents (e.g., “Product of China,” “Product of Vietnam,” etc., as the case may be).
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Nathan Rosenstein at 646-733-3030.
Sincerely,
Robert B. Swierupski
Director,
National Commodity Specialist Division