CLA-2-21:OT:RR:NC:N5:228

Leif Backman
Tiger Finland Oy
Polkkatie 18
Hyvinkaa 05810
Finland

RE: The tariff classification, country of origin, and marking of a food preparation from Indonesia

Dear Leif Backman:

In your letter dated September 8, 2025, you requested a tariff classification, country of origin, and marking ruling.

The subject merchandise, “Tiger Zero, Spiced Coffee Pouches,” is described as white powdery mixture in a small white rectangular pouch contains microcrystalline cellulose powder (India), natrium carbonate powder (Indonesia), salt powder (Indonesia), xylitol powder (Indonesia), sucralose powder (Indonesia), coffee liquid (Indonesia), clove liquid (Indonesia), vanilla (Indonesia), chiller liquid (Indonesia), caffeine liquid (Poland), propylene glycol liquid (Indonesia), and distilled water (Indonesia). The sucralose is said to not be derived from cane sugar or beet sugar and is chemically derived from sucrose. The coffee flavor is said to be a liquid flavor concentrate and is a synthetic flavoring.

The pouch is said to measure approximately twelve millimeters in length and five millimeters in width. The pouches are stated to contain one hundred milligrams of caffeine that is water-extracted from coffee. The product is described as not containing any coffee flavor. At the time of U.S. importation, the product is packaged in cylindrical cans that are 2.75 inches in diameter and .94 inches in height, containing twenty pouches in each container.

The directions for use include the user to place the pouch between their gum and upper lip for approximately thirty to sixty minutes. The ingredients are then absorbed into the body via the oral mucosa and enter the blood stream without the caffeine being digested. The product is stated to not be swallowed, as the pouch may pose a choking hazard. The product is stated to be tobacco and nicotine free and are not marketed as a dietary supplement or food supplement. The product is marketed as an “energy product,” and serves as an alternative to caffeinated energy drinks and specialty coffee. The applicable subheading for the caffeine pouches will be 2106.90.9998, 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.

Sourcing Scenario:

The USP-grade caffeine, microcrystalline cellulose, sweeteners, flavorings, purified water, filter paper are said to be sourced from suppliers and received in Indonesia.

The manufacturing process for the “Tiger Zero, Spiced Coffee Pouches” dietary supplement includes the procurement of raw materials from suppliers, including USP-grade caffeine anhydrous, microcrystalline cellulose, sweeteners, flavorings, purified water, and food-grade filter paper. The Microcrystalline cellulose is made in India, Natrium Carbonate, salt, xylitol, sucralose, synthetic coffee flavoring, clove, vanilla, cooling flavoring, propylene glycol, and distilled water are made in Indonesia. The packaging cans are made in China. The packaging labels are made in Indonesia. The nonwoven filter packaging is made in the United Kingdom. The blending, pouching, sealing, labeling, and final quality assurance are conducted in Indonesia.

All manufacturing steps, which include blending, pouching, sealing, labeling, and final quality assurance, are completed in Indonesia before U.S. importation. At the time of U.S. importation, the product arrives as a finished dietary supplement in sealed cans, containing individual 0.5g pouches filled with a pre-blended mixture of USP-grade caffeine, food-grade microcrystalline cellulose, flavoring agents, sweeteners, and purified water.

Country of Origin:

Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, 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 the 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.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940).

Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations.

A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940). In Indonesia the manufacturing operations performed results in an article/product wherein the individual ingredients lose their identity and a new product with a new name, character, and use, emerges. Therefore, a substantial transformation of the ingredients into a dietary supplement described as “Tiger Zero, Spiced Coffee Pouches,” occurs in Indonesia. Accordingly, the country of origin of the product is Indonesia.

Accordingly, it should be marked “Made in Indonesia” or “Product of Indonesia.” You submitted photographs of an English language marking label for the U.S. consumer market that will be placed on the container will meet CBP marking requirements. The label dimensions are stated to be 2.165” and is indelible and permanent. The sticker is permanently affixed to the retail package. The label identifies the brand, contents, weight, and ingredients. At the bottom of the label, the phrase “Made in Indonesia” appears. The proposed marking and label will meet the statutory requirements of 19 C.F.R. § Part 134.

Trade Remedy

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from Indonesia will be subject to an additional 19 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.02.27, in addition to subheading 2106.90.9998, HTSUS, listed above.

The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.

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.

This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Timothy Petrulonis at [email protected].
Sincerely,

(for)
Denise Faingar
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division