OT:RR:NC:N5:229
Scott Lindsey
European Imports
1390 Enclave Parkway
Houston, TX 77077
RE: The country of origin and eligibility of the United States-Mexico-Canada Agreement (USMCA) of
toasted sesame oil
Dear Mr. Lindsey:
In your letter dated March 16, 2026, you requested a binding ruling concerning the country of origin and
eligibility for preferential treatment under the United States-Mexico-Canada Agreement (USMCA) of toasted
sesame oil.
In your submission, you describe a scenario where toasted sesame oil is produced in Mexico from sesame
seeds sourced from Mexico. In Mexico, the seeds go through a cleaning, toasting, extraction, and cooling
process in order to produce the oil. The oil is then filtered and shipped in bulk to the United Kingdom. In the
United Kingdom, the oil is separated from bulk, bottled, labeled, and packaged for retail sale. After the
packaging is complete, the product is imported from the United Kingdom to the United States.
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).
In this case, the processing performed in the United Kingdom, which consists of separating the oil from bulk,
bottling, labeling, and packaging of the oil for retail sale would not effect a substantial transformation. The
operations that are performed in the United Kingdom do not create an article with a new name, character, or
use different from that possessed by the article prior to processing. The sesame oil is produced in Mexico
from sesame seeds sourced in Mexico. Accordingly, the finished good is a product of Mexico.
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 Harmonized Tariff Schedule of the United States (“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 oil is not exported directly from Mexico into the United States, we must also consider GN
11(h)(iv), which states:
Transit and transshipment. — A good that has undergone production necessary to qualify as an
originating good under subdivision (b) of this note shall not be considered to be an originating good
if, subsequent to that production, the good-
(A) undergoes further production or any other operation outside the territory of a USMCA country,
other than—
(1) unloading, reloading, separation from a bulk shipment, storing, labeling or marking, as
required by a USMCA country, or
(2) any other operation necessary to preserve the good in good condition or to transport the
good to the territory of the importing USMCA country; or
(B) does not remain under the control of customs authorities in a country other than a USMCA
country.
Here, the applicable processing operations performed in the United Kingdom on the oil consist of
repackaging. Although the packaging does not fundamentally change the oil, the processing performed in the
United Kingdom is still nevertheless more than loading or unloading operations related to preserving the
product in good condition. Further, you state the goods do not remain under the control of customs
authorities upon importation into the United Kingdom. Consequently, pursuant to GN 11(h)(iv), we find that
the oil loses its USMCA originating status as a result of the packaging operation performed outside of a
USMCA territory.
In NY N144856, dated February 22, 2011, CBP determined that toasted sesame oil was classified in
subheading 1515.50.0000, HTSUS. The applicable USMCA rule of origin for items classified in subheading
1515.50.0000, HTSUS is:
“A change to headings 1501 through 1518 from any other chapter, except from heading 3823.”
Therefore, we find because the oil loses its USMCA originating status by the packaging done in the United
Kingdom, the oil will only be eligible if the tariff shift rule for heading 1515 is met. As that is not the case,
the toasted sesame oil is not eligible for preferential tariff treatment under the USMCA.
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 ruling, please contact
National Import Specialist Christopher Gangaprashad at [email protected].
Sincerely,
(for)
James P. Forkan
Director
National Commodity Specialist Division