CLA-2-20:OT:RR:NC:N2:N232
Ms. Alena Eckhardt
Junker & Nakachi, P.C.
One Market Street, Suite 3600
San Francisco, CA 94111
RE: The Country of Origin and Marking for Pomegranate Juice Products
Dear Ms. Eckhardt:
This is in response to your letter dated September 17, 2021, on behalf of your client, National Private Label (NPL), requesting a ruling on the country of origin and marking of Pomegranate Juice Products. A photographic representation of the product label was submitted with your letter for review.
The subject merchandise is described as two reconstituted Pomegranate Juice Products. The first product is said to be composed of 60 percent pomegranate juice concentrate (Product of USA) and 40 percent pomegranate juice concentrate (Product of Turkey). The second product is said to composed of 40 percent pomegranate juice concentrate (Product of USA) and 60 percent pomegranate juice concentrate (Product of Turkey).
The pomegranate juice concentrate (Product of Turkey) will be blended with the pomegranate juice concentrate (Product of USA) upon importation to produce reconstituted Pomegranate Juice Products in the United States. The finished products will be packaged in 64 ounce, ready-to-drink plastic containers put up for retail sale.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The "country of origin" is defined in 19 CFR 134.1(b) as "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 render such other country the 'country of origin' within the meaning of 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. 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 National Juice Products, the court upheld a Customs' determination that imported orange juice concentrate is not substantially transformed when it is domestically processed into retail orange juice products. In that case, the imported concentrate was mixed with water, orange essences, orange oil and in some cases fresh juice and either packaged in cans and frozen or pasteurized, chilled and packed in liquid form. Customs found, and the court agreed, that the further processing of the juice in the U.S. did not produce an article with a new name, character or use because the essential character of the final product was imparted by the basic ingredient, the orange juice concentrate. The court stated "the retail product in this case is essentially the juice concentrate derived in substantial part from . . . oranges. The addition of water, orange essences and oils to the concentrate, while making it suitable for retail sale does not change the fundamental character of the product, it is still essentially the product of the juice of oranges."
Accordingly, the change in the instant case from the pomegranate juice concentrate to reconstituted pomegranate juice is not considered persuasive evidence of a substantial transformation.
Customs has consistently held that blending a product from one country with the same product of another country does not constitute a substantial transformation. Similarly, we find in this case that the blending process does not alter the essential character of the pomegranate juice concentrate and thus the products do not become a new article of commerce. Rather, the reconstituted pomegranate juice retains the fundamental character as well as the name and use of the concentrated pomegranate juice product. Since the pomegranate juice concentrates are not substantially transformed as a result of the blending, packaging and labeling performed upon importation into the United States, the marking must reflect the country where the pomegranate juice concentrate was produced. Accordingly, the Pomegranate Juice Products are considered a product of the USA and Turkey for country of origin purposes.
The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 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. Congressional intent in enacting 19 U.S.C. § 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” United States v. Friedlaender & Co., 27 C.C.P.A. 297, 302 (1940).
As provided in 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, 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, 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.
It is our opinion, the proposed marking " Pomegranate Juice from the U.S. and Turkey " for the Pomegranate Juice Products, is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the finished products.
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, 6th and 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 Frank Troise at frank.l.troise.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division