CLA-2:OT:RR:NC:N5:232
Ms. Erin Shinkle
Galerie Candy
3380 Langley Drive Hebron, KY 41048
RE: The country of origin of a Hollow Chocolate Ball with Marshmallow Inside
Dear Ms. Shinkle:
In your letter dated August 2, 2023, you requested a country of origin ruling. A product description sheet, images, manufacturing process description, and related data were included with your request.
The merchandise under consideration is a Hollow Chocolate Ball with a Marshmallow Inside. The item is produced from milk chocolate from Singapore that is made into bars that measure 11.8 inches x .87 inches x 1.18 inches and weigh 2.5 kgs. each. The hollow ball produced in China from the Singaporean milk chocolate has a diameter of 2.75 inches. The Spiderman marshmallow made in China that is inserted in the ball measures 1.5 inches x 2 inches x 0.7 inches and weighs 10 g. In China, the chocolate from Singapore is melted, molded, opened, has the marshmallow inserted, closed, cooled, and packed. You stated that no further ingredients are added to the chocolate in China.
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.”
The courts have held that 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); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
U.S. Customs and Border Protection (CBP) has consistently held that a substantial transformation has not occurred as a result of processing chocolate blocks or chips into chocolate shapes in another country. See, e.g., N302350 dated March 1, 2019, in which chocolate roses and other shaped articles made in China from Belgian chocolate did not undergo a substantial transformation in China, thus making the chocolate articles products of Belgium. Similarly, in the instant case we find the chocolate ball is a product of Singapore for country of origin marking purposes. No further ingredients are added in China and the chemical characteristics of the chocolate are unchanged. The processing performed in China does not alter the essential character of the chocolate. Therefore, the product does not become a new article of commerce. Rather, the chocolate ball retains the fundamental character as well as the name and use of the initial product.
Since the chocolate is not substantially transformed as a result of the processing performed in China, when the product is imported to the United States the marking must reflect the country where the chocolate was initially produced, namely, Singapore. The marking for the product at issue should therefore be, “Produced in Singapore.”
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 the 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 CFR Part 177).
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of CBP and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 questions regarding the above, contact National Import Specialist Frank Troise at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division