CLA-2-09:OT:RR:NC:N5:232

Ms. Venus Yu
New Horizon Enterprises Ltd.
1992 Alpine Way
Hayward, CA 94545

RE: The tariff classification and country of origin of black tea

Dear Ms. Yu:

In your letter, dated October 7, 2025, you requested a ruling on tariff classification and a country of origin determination.

The subject merchandise is a Black Tea product called Tsit Wing Blue Label Tea. It is said to contain a blend consisting in equal parts of Sri Lankan and China Dust tea. The 50-50 tea product is grown, harvested, processed, and packaged as raw materials in Sri Lanka and China. The raw materials are then shipped to Hong Kong for inspection, blending, packaging, and shipping. The product is imported as loose tea to the United States in five-pound metalized film bags.

Classification:

The applicable subheading for the Black Tea will be 0902.30.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Tea, whether or not flavored: Black tea (fermented) and partly fermented tea, in immediate packings of a content not exceeding 3 kg...Other.” The rate of duty will be free.

Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings 9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 subheading, i.e., 9903.01.24, in addition to subheading 0902.30.0090, HTSUS.

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 China will be subject to an additional 10 percent ad valorem rate of duty. Products of Sri Lanka will be subject to an additional 15 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 subheading applicable to your product classification, i.e., 9903.01.25 (China) and 9903.02.57 (Sri Lanka), in addition to subheading 0902.30.0090, HTSUS.

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/.

Country of Origin:

You seek a determination as to the country of origin of the above-described product.

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 test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982).

This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).

In the present case, we find the steps undertaken by the means you outline in Hong Kong does not effect a substantial transformation. Accordingly, we find the Black Tea is a product of both Sri Lanka and China, and the product must reference both origins of the product.

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).

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. 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 ruling, contact National Import Specialist Frank Troise at [email protected].


Sincerely,

(for)
Evan Conceicao
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division