MAR-2 OT:RR:NC:N2:231

Ms. Sonia Medina
Flegenheimer International Inc.
227 W Grand Avenue
El Segundo, CA 90745

RE: THE COUNTRY OF ORIGIN MARKING OF PEELED SHRIMP

Dear Ms. Medina:

This is in response to your letter dated December 3, 2018 requesting a country-of-origin ruling on behalf of your client, Eastern Fish Company (Teaneck, NJ).

You have outlined a scenario in which frozen, raw, unprocessed, wild caught Argentine Red shrimp (Pleoticus muelleri) will be shipped to China for further processing. In China, the frozen shrimp will be thawed, graded, beheaded, deveined, washed, soaked in the food additive Carnal 659S and salt. The product is then rinsed, graded by size, arranged on trays, and frozen. You have stated that the end result of the aforementioned processes will be “EZ Peel Shrimp” or “Peeled and Deveined Shrimp.” The frozen trays will be packed into 2-pound plastic bags then shipped to the United States. You seek a determination as to the proper country of origin of the processed shrimp.

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. As provided in section 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 a marking, section 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, section 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’s container until it reaches the ultimate purchaser unless deliberately removed is acceptable. Part 134, CBP Regulations (19 C.F.R. §134) implements the country of origin marking requirements of 19 U.S.C. §1304. 19 C.F.R. §134.1(b) defines “country of origin” as: [T]he 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 [the marking regulations]… 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). U.S. Customs and Border Protection (CBP) has previously ruled that the processing of shrimp by means you outline (i.e., beheading, peeling, de-veining) does not effect a substantial transformation. In the case of the “EZ Peel Shrimp” or “Peeled and Deveined Shrimp,” we find that the Argentine Red shrimp is not substantially transformed as a result of the processing in China. Accordingly, we find that the products retain their initial country-of-origin status for CBP marking purposes. Therefore, the packages of processed shrimp entering the United States must be marked to indicate that their contents are products of the original country, e.g., “Product of Argentina.”

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 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 Ekeng Manczuk at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division