CLA-16:OT:RR:NC:N5:231
Mr. Sean Xia
Clear Ocean Seafood Ltd. 21331 Gordon Way Richmond, BC V6W 1J9
Canada
RE: The Country of Origin of Bacon Wrapped Scallops Medallions
Dear Mr. Xia:
In your letter, dated April 8, 2024, you requested a country of origin determination.
You have outlined a scenario whereby scallops (Argopecten irradians) are harvested in China, frozen, and exported in medallion form to Canada, where the scallops are enrobed in raw bacon. You state that the product will be comprised of scallop medallion (45 percent) and bacon (55 percent). The frozen finished product, which will be shipped to the United States for sale to food distributors for restaurant use, will be packed in plastic bags with a net weight of 2 pounds.
You seek a determination as to the country of origin of the above-described product.
The country of origin is defined in 19 C.F.R. 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; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. 102.21. See 19 C.F.R. 102.11.
Applied in sequential order, 19 C.F.R. 102.11(a) provides that the country of origin of a good is the country in which:
(1) The good is wholly obtained or produced; (2) The good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
The frozen raw bacon wrapped scallop medallions are neither wholly obtained or produced nor produced exclusively from domestic materials. Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the scallops, and paragraph (a)(3) must be applied next to determine the origin of the finished article.
The applicable tariff shift requirement in section 102.20 for the merchandise at issue classifiable in subheading 1605.52, HTSUS, consist of the following:
A change to heading 1601 through 1605 from any other chapter, except from smoked products of heading 0306 through 0308.
Since the foreign material in the product, which is the frozen scallop medallions, is classified in heading 0307, the tariff shift rule in 19 C.F.R. 102.20(a)(3) is met. Accordingly, the country of origin for marking purposes of the finished product, Bacon Wrapped Scallops, is Canada.
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 U.S. Customs and Border Protection (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.
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 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 Title 19 of the Code of Federal Regulations (19 C.F.R. 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.
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, please contact National Import Specialist Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division