OT:RR:NC:N5:231
Mr. Franco Jofré
Miller & Chevalier Chartered
900 Sixteenth Street NW
Washington, DC 20006
RE: The Country of Origin of Converted Oil
Dear Mr. Jofré:
In your letter dated November 12, 2025, you requested a country of origin ruling on Converted Oil on behalf
of your client, The Phillips 66 (Houston, TX).
The subject merchandise is a product derived from used cooking oil (“UCO”) sourced from China. Upon
importation to the United States, the converted oil will be used as a feedstock in the production of renewable
diesel and other low-carbon fuels. You state the suitability of UCO as a renewable fuel feedstock depends in
part on its free fatty acid (“FFA”) content, as UCO with elevated FFA levels may only be used in limited
quantities in renewable fuel production. However, you say that UCO with high FFA levels may be converted
into a suitable feedstock through chemical conversion processes, including esterification and glycerolysis.
You further explain that the UCO will be shipped from China to South Korea, where it will undergo a
multi-stage chemical transformation process. This process includes glycerolysis, which converts degraded,
high-FFA waste oil into a chemically distinct bio-intermediate product. Specifically, the processing steps
include the following: (1) pre-treatment of the UCO to remove impurities through degumming, adsorption,
and filtration; (2) glycerolysis, a chemical reaction in which FFAs react with glycerol to form a mixture of
mono-, di-, and triglyceride esters, resulting in a substantially altered molecular structure compared to the
original UCO; and (3) separation and refining to remove residual glycerol, water, and trace impurities.
You seek a determination as to the country of origin of the above-described product.
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 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).
In this instance, the above-described processing performed in South Korea constitutes a substantial
transformation, resulting in a new article with a different name, character and use. Through a multistage
chemical process, the UCO is converted into a bio-intermediate for renewable fuel product; therefore, the
converted oil is a product of South Korea.
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 any questions regarding the ruling, please contact
National Import Specialist Ekeng Manczuk at [email protected].
Sincerely,
(for)
Deborah Marinucci
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division