OT:RR:NC:N5:231
Sean Xia
Clear Ocean Seafood Ltd.
2145-21331 Gordon Way
Richmond, B.C. V6W 1J9
Canada
RE: The tariff classification and eligibility of the United States-Mexico-Canada Agreement (USMCA) of
Butter Herb Shrimp
Dear Mr. Xia:
In your letter dated March 6, 2026, you requested a country of origin and United States-Mexico-Canada
Agreement eligibility determination for Butter Herb Shrimp.
The subject merchandise is “Butter Herb Shrimp,” consisting of frozen raw shrimp initially harvested, peeled,
and deveined in Thailand and imported into Canada, with India serving as an alternative country of supply in
the event of shortages. In Canada, a butter herb sauce is prepared by mixing, pasteurizing, and packaging
ingredients sourced from multiple countries, including canola oil, salt, black pepper, rosemary, oregano,
parsley, and skim milk powder (Canada); maltodextrin, glucose, natural flavor, and lemon juice concentrate
(United States); mono- and diglycerides (Malaysia); and ascorbic acid (China). The finished product is
composed of approximately 75 percent shrimp (Thailand and/or India) and 25 percent sauce.
In Canada, processing operations include removal of the original shrimp packaging, thawing, butterfly
cutting, mixing the shrimp with the prepared sauce, refreezing, weighing, and packaging into low density
polyethylene (LDPE) bags for both retail sale and bulk distribution prior to importation into the United
States. The product is intended to be cooked prior to consumption.
You seek a determination of the origin and applicability of USMCA eligibility of the above-described
product.
Country of Origin
When determining the country of origin, 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; 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. Applied in sequential order, the required hierarchy establishes that: (a) 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 section 102.20 and satisfies any other applicable requirements of that section, and all other
requirements of these rules are satisfied..
The subject merchandise is neither “wholly obtained or produced” nor “produced exclusively from domestic
materials.” Therefore, Sections 102.11(a)(1) and (a)(2) do not apply to the facts presented in this case.
Because the analysis of sections 102.11(a)(1) and 102.11(a)(2) does not yield a country of origin
determination, we look to section 102.11(a)(3).
The subject merchandise is classified under subheading 1605.21.1030, HTSUS. The applicable tariff shift
requirement in Part 102.20 for the subject merchandise of subheading 1605.21, HTSUS, states:
A change to heading 1603 through 1605 from any other chapter, except from smoked products of heading
0306 through 0308.
In this case, the shrimp is classified in subheading 0306.17.0042, HTSUS, prior to processing in Canada.
Because the rule specifically excludes a tariff shift from heading 0306, the shrimp does not undergo the
required tariff shift. The tariff shift is not met. Accordingly, the country of origin of the finished Butter Herb
Shrimp is the country of origin of the shrimp, namely Thailand or India, depending on the source of the
shrimp used in production.
USMCA
The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30,
2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the
USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (“GN”)
11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is
an originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential
tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the
tariff schedule as a “good originating in the territory of a USMCA country” only if—
(i) the good is a good wholly obtained or produced entirely in the territory of one or more
USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries,
exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries
using non-originating materials, if the good satisfies all applicable requirements set forth in
this note (including the provisions of subdivision (o));
Since the subject merchandise contains non-originating ingredients, they are not considered a good wholly
obtained or produced entirely in a USMCA country under GN 11(b)(i), nor are the products produced
exclusively from originating materials per GN 11(b)(ii). Thus, we must determine whether to product
qualifies under GN 11(b)(iii). As previously stated, the merchandise at review is classified under subheading
1605.21.1030, HTSUS. The applicable rule of origin for goods classified under subheading 1605.21.1030,
HTSUS, is found in GN 11(o), Chapter 16, HTSUS, which provides for “A change to headings 1601 through
1605 from any other chapter.”
Based on the facts provided, the goods described above qualify for USMCA preferential tariff treatment,
because they will meet the requirements of HTSUS General Note 11(b)(iii). The goods will therefore be
entitled to a free rate of duty under the USMCA upon compliance with all applicable laws, regulations, and
agreements.
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).
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.
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)
James Forkan
Designated Official Performing the Duties of the Division Director
National Commodity Specialist Division