MAR-2-03:OT:RR:NC:N2:231
Mr. Richard Xiao
Fortune Laurel LLC
38 Billings Road, Ste. # 2
Quincy, MA 02171
RE: The tariff classification and country of origin of frozen shrimp from Ecuador, Thailand or Vietnam after processing in China.
Dear Mr. Xiao:
In your letter dated March 21, 2012, you requested a tariff classification and country-of-origin ruling.
You have outlined a scenario in which raw, whole, unprocessed frozen shrimp from Ecuador, Thailand or Vietnam will be shipped to China for processing. After being processed in China, the shrimp will be imported into the United States. You seek a determination as to the proper tariff classification and country of origin, for marking purposes, of the processed shrimp. For the purposes of this ruling, it is assumed that the shrimp in question are warmwater species, and that they will be imported into the United States in frozen condition.
The processing in China will yield three different versions of shrimp:
(A) Peeled and deveined (P & D), raw
(B) Peeled and deveined (P & D), cooked
(C) Headless, shell-on (HLSO), raw
The applicable subheading for the frozen, processed warmwater shrimp, version “A” (P & D raw) will be 0306.17.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine … : frozen: other shrimps and prawns: peeled, imported in accordance with Statistical Note 1 to chapter 3. The rate of duty will be Free.
The applicable subheading for the frozen, processed warmwater shrimp, version “C” (HLSO raw) will be 0306.17.00, HTSUS, which provides for crustaceans, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine … : frozen: other shrimps and prawns. The applicable statistical suffix, in the range of “03” to “27” for shell-on products, will depend on the count size, as specified in the HTSUS. The rate of duty will be Free.
The applicable subheading for the frozen, processed warmwater shrimp, version “B” (P & D cooked), if not in airtight containers when imported, will be 1605.21.1030, HTSUS, which provides for crustaceans, molluscs and other aquatic invertebrates, prepared or preserved: shrimps and prawns: not in airtight containers: other: frozen, imported in accordance with Statistical Note 1 to chapter 16: other. The rate of duty will be Free.
The applicable subheading for the frozen, processed warmwater shrimp, version “B” (P & D cooked), if imported in airtight containers, will be 1605.29.1010, HTSUS, which provides for crustaceans, molluscs and other aquatic invertebrates, prepared or preserved: shrimps and prawns: other: other: frozen, imported in accordance with Statistical Note 1 to chapter 16. The rate of duty will be Free.
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 on World Wide Web at http://www.usitc.gov/tata/hts/.
Some shrimp may be subject to antidumping duties or countervailing duties. Written decisions regarding the scope of AD/CVD orders are issued by the Import Administration in the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection. You can contact them at http://www.trade.gov/ia/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at http://www.usitc.gov (click on “Antidumping and countervailing duty investigations”), and you can search AD/CVD deposit and liquidation messages using the AD/CVD Search tool at http://addcvd.cbp.gov/.
This merchandise may be subject to additional requirements administered by the following agencies, whose addresses are provided for your reference:
U.S. Department of State
Bureau of Oceans & Int’l. Environmental & Scientific Affairs
Office of Marine Conservation
2201 C Street, NW
Washington, DC 20520
Telephone: (202) 647-2335
U.S. Food and Drug Administration (FDA)
Division of Import Operations and Policy
5600 Fishers Lane
Rockville, MD 20857
Telephone: (301) 443-6553
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.
With regard to country of origin, Section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Pursuant to 19 CFR Section 134.1(b), the country of origin is the country of manufacture, production or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such country the country of origin within the meaning of Part 134 of the regulations.
A substantial transformation occurs when a new and different article of commerce emerges from a process with a new name, character or use different from that possessed by the article prior to processing. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940).
U.S. Customs and Border Protection (CBP) has previously ruled that the processing of shrimp by means you outline (i.e., peeling, de-veining, cooking, etc.) does not effect a substantial transformation. See Headquarters Ruling Letters 731763 (5/17/89), 563033 (7/6/04) and 563063 (7/26/04). Accordingly, we find that even after being processed in China, the products currently under discussion retain their initial country-of-origin status for CBP marking purposes. Therefore, the packages of processed shrimp entering the United States must be marked to indicate that their contents are products of the original country, e.g., “Product of Ecuador,” “Product of Thailand,” or “Product of Vietnam,” as the case may be. Also, if the shrimp will be repackaged after importation, the certification procedures of 19 CFR 134.25 should be followed.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Nathan Rosenstein at (646) 733-3030.
Sincerely,
Thomas J. Russo
Director,
National Commodity Specialist Division