CLA-2: 16:OT:RR:NC: N5: 231

Byung Wan Lee
JangBaek Customs Attorney
4F, 24,Dosandaero38,Kangnam
Seoul 06049
Korea, South

RE: The tariff classification of Seasoned Squid from South Korea. Correction to Ruling Number N352331

Dear Mr. Lee:

This replaces Ruling Number, N352331, dated September 12, 2025, which contained a clerical error. The United States-Korea Free Trade Agreement (UKFTA) analysis was omitted from the final ruling. A complete corrected ruling follows.

The subject merchandise is Banchandanji Jeotgal (Seasoned Squid). The ready-to-eat product is composed of salted squid, starch syrup, red pepper powder, frozen minced garlic, paprika extract, sugar, frozen red chili pepper, fresh garlic, sesame seeds, mipung (umami seasoning blend), matsurae (flavor enhancer), ground ginger, anchovy fish sauce, glycine, xanthan gum, polymix-m (preservative blend) and compound phosphate. The manufacturing process involves cutting the squid into stripes, salting them and then blending them with the aforementioned seasoning ingredients. You state that the squid is procured and salted in China, then exported to Korea. In Korea, it is mixed with a proprietary seasoning mix. Jeotgal Seasoned Squid is commonly consumed as a side dish or as a condiment. You proposed classification of the product in subheading 1605.54.6030, HTSUS. We agree.

Classification:

The applicable subheading for the Seasoned Squid will be 1605.54.6030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved: Cuttle fish and squid: Other: Squid: Other.” The general 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 heading, i.e. 9903.01.24, in addition to subheading 1605.54.6030, HTSUS, listed above.

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 of China, Hong Kong, and Macau will be subject to an additional ad valorem rate of duty of 10 percent. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading 1605.54.6030, HTSUS, listed above.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 1605.54.6030, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 1605.54.6030, 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/

Country of Origin:

When determining the country of origin for purposes of applying current trade remedies under Section 301 and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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).

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.”

In this case, we find that the processing described in Korea (the addition of the proprietary blend of seasonings) does not effect a substantial transformation. Accordingly, we have determined that the squid r etains its original country of origin as a product of China. You provided a picture of a bulk sized plastic container bearing a label as well as a picture of the labels. The product appears to satisfy the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134. Please be advised that if the product is imported in bulk units, then broken down and repackaged in the United States following importation, in such instances, the certification procedures set forth in 19 CFR 134.25/134.26 should be followed to ensure that ultimate purchasers of the repacked goods are made aware of the fact that the country of origin is China.

United States-Korea Free Trade Agreement (UKFTA)

General Note 33, Harmonized Tariff Schedule of the United States (HTSUS), sets forth the criteria for determining whether a good is originating under the UKFTA. General Note 33(b), HTSUS, states, in pertinent part, as follows:

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good of a UKFTA country under the terms of this note if–

(i) the good is wholly obtained or produced entirely in the territory of Korea or of the United States, or both;

(ii) the good is produced entirely in the territory of Korea or of the United States, or both, and-- (A) each of the non originating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (o) of this note; or (B) the good otherwise satisfies any applicable regional value-content or other requirements set forth in such subdivision (o); and satisfies all other applicable requirements of this note and of applicable regulations; or

(iii) the good is produced entirely in the territory of Korea or of the United States, or both, exclusively from materials described in subdivisions (i) or (ii), above.

For the purposes of this note, the term “UKFTA country” refers only to Korea or to the United States.

Since the product contains non-originating components - salted squid, red pepper powder, frozen minced garlic, frozen red chili pepper, fresh garlic (China), sesame seeds (India) - it would not be considered a good wholly obtained or produced entirely in a UKFTA country under GN 33(i). Thus, we must determine whether the product qualifies under GN 33(ii).

As previously noted, the product is classified under subheading 1605.54.6030, HTSUS. GN 33 (o)/ Chapter 16 states:

“A change to heading 1605 from any other chapter.”

In this case, since all the ingredients are classified in chapters other than Chapter 16, the tariff shift rule is met. Therefore, the product is eligible for preferential tariff treatment under the UKFTA even though it does not effect a substantial transformation for country-of-origin marking purposes.

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 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 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 above, please contact National Import Specialist Ekeng Manczuk at [email protected].
Sincerely,

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