CLA-2-21:OT:RR:NC:N2:228
Ms. Autumn Murillo
Operations Manager
Texas Boga, Inc.
1100 Nasa Parkway, Suite 308
Houston, TX 77058
RE: The tariff classification, country of origin and country of origin marking of a honey blend from Indonesia
Dear Ms. Murillo:
In your letter dated December 15, 2011 you requested a tariff classification ruling.
A bottle of the sample product, an ingredients breakdown and image of a drum with a label were submitted with your letter. The sample was examined and disposed of. The product is a blend composed of 45 percent pure natural honey, 42 percent maltose-glucose cassava syrup and 13 percent high fructose cassava syrup. The blend will be packed in iron drums weighing 290 kgs. (640 lbs.) net weight.
All three ingredients of the honey blend are products of Indonesia. The product will be blended in Indonesia and is used as a sweetener in the food industry. Common uses are in baked goods, confectionaries, sauces, butter, and popcorn. After imported, the honey blend will be sold directly to honey blend processors or producers, and then they will customize the product based on their buyers’ requests. You also stated the product is suitable for retail and re-packaging without further processing.
A printed label is affixed to the middle of a drum. The label contains a purchase order number, lot number, name of the product, net weight, gross weight, statement of “PRODUCT OF INDONESIA” and U.S. distributor’s name and address. The distributor’s information is in a smaller font than the other information.
The applicable subheading for the honey blend will be 2106.90.9998, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included . . . other . . . other . . . other . . . other . . . other. The rate of duty will be 6.4% 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 http://www.usitc.gov/tata/hts/.
Articles classifiable under subheading 2106.90.9998, HTSUS, which are products of Indonesia may be entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. 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”.
In your request for a tariff classification ruling, you asked that we rule on the country of origin and the country origin marking of the product. 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 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 United States 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.
Part 134.1(b) Customs Regulations (19 CFR 134.1(b)), defines ‘country of origin’ as the country of manufacture, production or growth of any article of foreign origin entering the United States. Since the three ingredients of the product, as you stated, were made or harvested in Indonesia, and the product was blended in Indonesia, the country of origin of the honey blend will be Indonesia.
With regard to product labeling, the information you described that will be contained on each label on each drum to show that the contents, honey blend, is a product of Indonesia meets the product marking requirements accordingly.
The "ultimate purchaser" is defined generally as the last person in the U.S. who will receive the
article in the form in which it was imported. Under 19 CFR 134.1(d), example (1) of this Part provides that if an imported article will be used in manufacture, the manufacturer may be the “ultimate purchaser” if he subjects the imported article to a process which results in a substantial transformation of the article. Example (2) of the Part provides that if the manufacturing process is merely a minor one which leaves the identity of the imported article intact, the consumer or user of the article, who obtains the article after the processing, will be regarded as the “ultimate purchaser.”
As provided in Part 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.
With regard to the permanency of marking, Part 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, Part 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 134.46, Customs Regulations (19 CFR 134.46), requires that in any case in which the words “United States,” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or location in the United States, or the name of any foreign country or locality other than the country or locality in which the article was manufactured or produced appear on an imported article or its container, and those words, letters or names may mislead or deceive the ultimate purchaser as to the actual country of origin of the article, there shall appear legibly and permanently in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by “Made in,” “Product of,” or other words of similar meaning.
In order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality or other than the actual country of origin appears. The proposed marking of the honey blend, as described above, is conspicuously and legibly in accordance with the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. Based on the picture provided, it appears the label will come off only if it is deliberately removed. However, without a sample and an explanation of how the label will be affixed to the drum, we cannot definitely state that the label will not fall off. Accordingly, if the district director at the port entry is satisfied that the label will remain on the container, the use the label to indicate the country of origin of the product will satisfy the permanence requirements of 19 U.S.C. 1304 and 19 CFR part 134.
Please note that, pursuant to 19 CFR 134.26(a), “If an article subject to these requirements is intended to be repacked in retail containers (e.g. blister packs) after its release from Customs custody, or if the port director having custody of the article, has reason to believe that such article will be repacked after its release, the importer shall certify to the port director that: (1) If the importer does the repacking, he shall not obscure or conceal the country of origin marking appearing on the article, or else the new container shall be marked to indicate the country of origin of the article in accordance with the requirements of this Part; or (2) if the article is intended to be sold or transferred to a subsequent purchaser or repacker, the importer shall notify such purchaser or transferee, in writing, at the time of sale or transfer, that any repacking of the article must conform to these requirements.” However, the certification procedures of 19 CFR 134.26 apply only to articles which are legally marked at the time of importation and which may be repacked in such a manner that the marking appearing at the time of importation could be concealed or obscured. The procedures generally are not applicable, for example to unmarked articles imported in bulk which are to be repacked for retail sale.
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 website 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 Bruce N. Hadley, Jr. at (646) 733-3029.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division