HQ 083172
April 5 1989
CLA 2 CO:R:C:G 083172 JGH
James P. Walsh, Esq.
Davis Wright & Jones
1752 N St N.W. Suite 800
Washington D.C. 20036
RE: Products of American Fisheries
Dear Mr. Walsh:
Your inquiry of October 20, 1988, involves whether certain fish products, the subject of joint venture, would be considered the products of American fisheries.
FACTS:
Under a joint venture involving U.S. and Soviet fishing and processing vessels, U.S. flag vessels will harvest crab, halibut and cod in the Soviet fishery zone in the North Pacific Ocean, outside of the 12 mile limit. On the Soviet flag processing vessel, crab legs will be removed from the heads and bodies leaving the clusters. The leg clusters will be cooked (by boiling) and then frozen (seawater glazing) in 5 kilogram packages. The halibut and cod will be "headed and gutted", then frozen. The partially processed fish will be shipped to the U.S. for consumption.
ISSUE:
Whether fish caught by U.S. flag vessels and processed by a foreign processing vessel would be considered products of American fisheries as defined in the Harmonized Tariff Schedule of the United States (HTSUS).
2
LAW AND ANALYSIS:
Although your inquiry refers to the American fishery provisions in the Tariff Schedules of the United States (TSUS), since that law has been replaced with the HTS, these provisions
are now found in subheading 9815.00.20, 9815.00.40, and 9815.00.60, HTS.
In your opinion, a limited amount of processing of the fish aboard a foreign flag processing vessel would not change the "American nature of the product", since item 180.10, TSUS, (now subheading 9815.00.40, HTS) allows processing in a foreign
country that amounts essentially to the removal of heads, viscera, and freezing, without changing the country of origin of the fish. Rather, you note that while the products will be partially processed on a Soviet processing vessel at sea, "Nonetheless, our client will keep control of the product and will sell it in the United States."
Under the pertinent Customs Regulations, Section 10.78, provides that products of an American fishery shall be entitled to free entry, if the preparation, preserving or otherwise changing of the condition of fish at sea is done by the master or crew of the fishery or by persons employed by and under the supervision of the master or owner of the fishery. Although
you state that your client will keep control of the product and sell it in the United States, there is no indication that such control will extend to the fish while it is being processed
aboard the Soviet processing vessel.
HOLDING:
Fish processed aboard a foreign flag vessel and then imported into the Customs territory of the United States would not be considered the product of American fisheries.
Sincerely,
John Durant, Director
Commercial Rulings Division