CLA-2-20:OT:RR:NC:N2:231
Mr. Vladimir E. Papazov
VI Trade Corp.
22 Salk Drive
Highland, NY 12528
RE: The tariff classification and country of origin marking of roasted hazelnuts from Turkey via Bulgaria.
Dear Mr. Papazov:
In your letter dated August 21, 2013, you requested a tariff classification and country-of-origin marking ruling.
You have outlined a scenario in which raw, natural, shelled hazelnuts of Turkish origin will be delivered to a processor in Bulgaria. In Bulgaria, the nuts will be cleaned, dry-roasted and put up in retail bags weighing approximately 3.5 ounces each. The bagged, dry-roasted nuts will then 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 finished dry-roasted nuts.
The applicable subheading for the bags of shelled, dry-roasted hazelnuts will be 2008.19.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included: nuts, peanuts (ground-nuts) and other seeds, whether or not mixed together: other, including mixtures: filberts. The rate of duty will be 11.3 cents per kilogram.
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/.
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 roasting of nuts does not effect a substantial transformation. See, for example, Headquarters Ruling Letter 730058 (June 2, 1987) and TD 85-158 (19 Cust. Bull. 360, October 15, 1985). Accordingly, we find that after being processed in Bulgaria, the goods currently under discussion retain their initial country-of-origin status for CBP marking purposes. Therefore, the individual retail packages of roasted hazelnuts entering the United States must be marked to indicate that their contents are products of the original country, e.g., “Product of Turkey.”
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,
Myles B. Harmon
Acting Director
National Commodity Specialist Division