CLA-2-03:OT:RR:NC:N2:231
Ms. Christine Blanchard
Pearl Inc., d/b/a Indian Ridge Shrimp Co.
P.O. Box 177
Chauvin, LA 70344
RE: The tariff classification and country of origin of U.S. shrimp processed in China.
Dear Ms. Blanchard:
In your letter dated October 22, 2013, you requested a tariff classification and country-of-origin ruling.
You have outlined a scenario in which raw, unprocessed warm-water shrimp of U.S. origin will be shipped to China for processing. The species will be Litopenaeus setiferus, Penaeus aztecus, and Xiphopenaeus kroyeri. The Chinese processing will consist of the removal of the heads and shells, and possibly also deveining. After being processed in China, the shrimp, in raw, frozen condition and packed in 2, 3 or 5 pound boxes, will be imported back into the United States. You seek a determination as to the proper tariff classification and country of origin, for marking purposes, of the returned, processed shrimp.
The applicable subheading for the frozen, processed shrimp 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.
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 are currently also 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., beheading, peeling, de-veining) 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 shrimp currently under discussion retain their initial country-of-origin status as U.S. products for CBP marking purposes. Therefore, since goods deemed to be products of the United States are not subject to the requirements of 19 U.S.C. 1304, the imported boxes of processed shrimp need not be marked with the country of origin. The question of whether these goods may be marked as products of the United States is under the jurisdiction of the Federal Trade Commission, which may be contacted for information at 6th and Pennsylvania Ave., NW, Washington, D.C. 20580.
You also asked generally about the steps you need to take in order to properly carry out the proposed scenario. In that regard, we would suggest that care be taken to establish strict controls over the tracking of product/inventory to prevent the possibility of any commingling and/or substitution. The ability to unequivocally identify the origin of any given product at any step in the procedure should be maintained. Documentation and photos detailing how this is done, both generally and for specific lots of product, should be generated and made available to CBP upon request.
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,
Gwenn Klein Kirschner
Acting Director,
National Commodity Specialist Division