CLA-2-21:OT:RR:NC:N2:228
Mr. Raffaele Natale
American Shipping Co. Inc.
250 Moonachie Road
Moonachie, NJ 07074
RE: The tariff classification and country of origin of soy protein from the United States.
Dear Mr. Natale:
In your letter received on January 6, 2021, you requested a tariff classification and country of origin ruling on behalf of your client, Tri-Union Seafoods LLC.
An ingredients breakdown, description of the manufacturing process, and photos for three products accompanied your letter.
The products are described as soy based plant proteins intended to be used as plant based tuna substitutes in salads, sandwiches, and salad toppers. The first product, “Plant based protein with lemon and pepper,” is said to contain hydrated soy protein concentrate, water, sunflower oil, salt, concentrated lemon juice, cracked black pepper, fermented vegetable powder, lemon oil flavor, and fermented vegetable sugar power. The second product, “Plant based protein in spring water,” is said to contain hydrated soy protein concentrate, spring water, salt, fermented vegetable powder, and fermented vegetable sugar powder. The third product, “Plant based protein with chili and garlic,” is said to contain hydrated soy protein concentrate, sunflower oil, water, salt, red chili, red spur pepper, garlic, fermented vegetable powder, fermented vegetable sugar powder, and paprika oleoresin. The hydrated soy protein concentrate comprises 65 to 66 percent of each product by weight, while containing a protein percentage on a dry-weight basis of 22 percent.
In the United States, manufacturing commences with soybeans undergoing an extraction process to form soy flour, which is further processed into a textured soy protein concentrate. Subsequently, the raw ingredients, soy protein, wheat gluten and wheat starch are metered in the appropriate amounts, and mixed into a homogeneous blend, cut into a crumbled chunk, dried, and sent to Thailand for processing. In Thailand, the textured soy protein concentrate is soaked with water, pressed, cut, mixed with flavoring ingredients, and canned. The products will be packed for retail sale, in packages weighing 142 grams, net weight.
The applicable subheading for “Plant based protein with lemon and pepper,” “Plant based protein in spring water,” and “Plant based protein with chili and garlic” will be 2106.90.9898, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included . . . other . . . other . . . other. The general rate of duty will be 6.4 percent 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 https://hts.usitc.gov/current.
As defined in 19 CFR 134.1(b), “country of origin” means 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 change the country of origin of the article. 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. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986).
In HQ 967925 (February 28, 2006), U.S. Customs and Border Protection (CBP) ruled that U.S. origin rice that was sent to Spain and combined with additional ingredients which included water, sunflower oil, salt, and soy lecithin, which were subsequently thermally processed and packaged did not constitute a substantial transformation. In NY I89834 (January 30, 2003), the merchandise consisted of four products involving dried mushrooms or dried mushrooms mixed with dried vegetables or herbs, packed for retail sale. Depending on the product, the mushrooms were products of China, Georgia Republic, Canada, or the United States. The herbs and dried vegetables were said to originate in Turkey, Morocco, Israel, Croatia, Egypt, Spain, or the United States. Other than blending and packaging, no other operations were performed on the ingredients. It was determined that the imported mushrooms were not substantially transformed as a result of blending with other ingredients and/or packing into retail containers.
In the present case, the textured soy protein concentrate of U.S. origin has not undergone a substantial transformation. The operations performed in Thailand do not result in a product with a different name, character, or use. The essential character of the soy protein concentrate is retained. Accordingly, the country of origin of the finished products is the United States. 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 Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the USA.
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).
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 Timothy Petrulonis at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division