CLA-2-21:OT:RR:NC:N4:228
Ms. Meri L. Ishikawa
The Islander Group
269 Palii Street
Mililani, HI 96789
RE: The classification and country of origin of spices from the Philippines.
Dear Ms. Ishikawa:
In your letter dated June 30, 2016, you requested a tariff classification and country of origin ruling. The ruling was returned to you for additional information, which was received by this office on November 29, 2016.
Ingredients breakdowns, mixing and packaging processes, photos of the products, and samples were provided with your letter. The samples were examined and discarded. The ALAEA Brand Salt samples are described as Salt White Diamond, Salt Herb Blend, and Salt Grilling Blend. The Salt White Diamond is said to contain 100 percent sea salt. The Salt Herb Blend is said to contain rock white salt, salt alaea red, dried minced garlic, cracked black pepper, herb blend, and ground ginger. The Salt Grilling Blend is said to contain rock white salt, salt alaea red, dried minced garlic, cracked black pepper, herb blend and crushed red pepper. These products are packaged in tubes weighing 2.5 ounces (70 grams), net weight. The ALAEA spices are available in single tubes, and three tube pack assortments for retail sale. The spices are used to flavor food.
You state in your letter that the spices are made in the United States (U.S.) and then shipped to the Philippines to be mixed and packaged.
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 U.S. the English name of the country of origin of the article. Part 134, Customs and Border Protection (CBP) Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
Section 134.1(b) of the regulations, defines "country of origin" as:
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 this Part….
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).
In this case, the mixture of pre-formulated ingredients to create the finished products results in a substantial transformation for two items. The ingredients lost their separate identities and became an integral part of a new product. The country of origin of the mixed spices, Salt Grilling Blend and Salt Herb Blend is the Philippines. The country of origin of the Salt White Diamond is the United States.
Section 134.1(d), CBP Regulations (19 CFR 134.1(d)), defines the ultimate purchaser as “generally the last person in the U.S. who will receive the article in the form in which it was imported. It is not feasible to state who will be the ‘ultimate purchaser’ in every circumstance.” If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, when the three products are sold at retail shops in their imported form, the ultimate purchasers of the three products are the consumers who purchase the products at retail.
As provided in section 134.41(b), CBP 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.
In section 134.1(k), CBP Regulations (19 C.F.R. 134.1(k)), “Conspicuous” means capable of being easily seen with normal handling of the article or container.
With regard to the permanency of a marking, section 134.41(a), CBP 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,CBP 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.
In this instance, the retail containers of the products must be marked in a conspicuous place as legibly, indelibly and permanently as the nature of theirs containers will permit to indicate the country of origin of each product. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC directly.
The applicable subheading for the Salt Herb Blend and Salt Grilling Blend will be 2103.90.9091, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sauces and preparations therefore; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard: Other: Other: Other: Other. The general rate of duty will be 6.4 percent ad valorem.
The applicable subheading for the Salt White Diamond will be 2501.00.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for salt (including table salt and denatured salt) and pure sodium chloride, whether or not in aqueous solution or containing added anticaking or free-flowing agents; sea water. The general 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 on the World Wide Web at https://hts.usitc.gov/current.
Articles classifiable under subheading 2103.90.9091, HTSUS, which are products of Philippines, 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”.
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 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).
Your inquiry does not provide enough information for us to give a classification and/or country of origin ruling on the Salt Assorted Classic, Salt Assorted Blend and the individual tube of Salt Alaea Red. Your request should include the following information: How is the charcoal mixed with the salt? Provide an ingredients breakdown in percentage format and the purpose of the activated charcoal. How is the Red Alaea mixed with the salt? Provide an ingredients breakdown in percentage format. The sample submitted will be retained in our office for 60 days pending resubmission of your ruling request. When this information is available, you may wish to consider resubmission of your request to Director, National Commodity Specialist Division, Customs and Border Protection, 201 Varick Street, Suite 501, New York, NY 10014, attn: Binding Ruling Request. If you decide to resubmit your request, please include all of the material that we have returned to you and a copy of this letter.
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 [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division