CLA-2-09:OT:RR:NC:N2:231
Ms. Ashley Hong
Nissin International Transport USA Inc.
1540 West 190th Street
Torrance, CA 90501
RE: The tariff classification and country of origin marking of ground pepper products and a garlic powder blend from Taiwan.
Dear Ms. Hong:
In your letter dated October 30, 2014, together with a follow-up submission with product samples received here on January 6, 2015, you requested a tariff classification ruling on behalf of Nishimoto Trading Company Ltd. You also submitted additional information via various email transmissions.
The item identified as “Black Pepper Granules” consists of 100% coarsely ground black pepper (Piper nigrum) put up in a plastic shaker bottle.
The item identified as “Black Pepper Powder” is a mixture of 75% finely ground black pepper (Piper nigrum), 15% green pepper powder (Capsicum annuum), 5% Oolong tea powder and 5% maltodextrin put up in a plastic shaker bottle.
The applicable subheading for the “Black Pepper Granules” and the “Black Pepper Powder” will be 0904.12.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for pepper of the genus Piper …: crushed or ground. The rate of duty will be free.
“Red Pepper (Chili) Powder” consists of 100% finely ground pepper of the species Capsicum annuum Linn put up in a plastic shaker bottle.
The applicable subheading for the “Red Pepper (Chili) Powder” will be 0904.22.7600, HTSUS, which provides for … dried or crushed or ground fruits of the genus Capsicum (peppers) or of the genus Pimenta: crushed or ground: of the genus Capsicum…: other. The rate of duty will be 5 cents per kilogram.
“Garlic Powder E” is an off-white powder composed of approximately 54% maltodextrin, 45% garlic, 1% silicon dioxide, and trace amounts of garlic flavor. The garlic and garlic flavor are products of Taiwan. The maltodextrin is a product of China. The silicon dioxide is a product of Korea. All ingredients are blended in Taiwan and packed in 300-gram plastic shaker bottles.
“White Pepper Powder” is an off-white powder composed of approximately 33% wheat bran, 31% maltodextrin, 11% pepper, 10% corn starch, 10% chili pepper, and 5% anise. The wheat bran and corn starch are products of Taiwan. The maltodextrin and anise are products of China. The pepper is a product of Malaysia. The chili pepper is a product of Thailand. All ingredients are blended in Taiwan and packed in 300-gram plastic shaker bottles.
In your letter, with respect to the “Garlic Powder E” and the “White Pepper Powder,” you suggested a tariff classification of 2103.90.9091, HTSUS, the provision for other sauces or sauce preparations. Based on the ingredients breakdowns, they will be classified elsewhere.
The applicable tariff provision for the “Garlic Powder E” and the “White Pepper Powder” will be 2106.90.9998, HTSUS, which provides for food preparations not elsewhere specified or included … other … other … other … other. The general rate of duty will be 6.4% ad valorem.
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/.
The marking statute, 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, U.S. Customs and Border Protection Regulations (19 C.F.R. §134) implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304.
Section 134.1(b) of the regulations (19 C.F.R. § 134.1(b)), defines "country of origin" as:
[T]he country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this Part…
A substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983).
In this case, the blending of the ingredients together in the case of the “Garlic Powder E” and the “White Pepper Powder” changes the character of the initial ingredients and creates new products, food preparations. This satisfies the substantial transformation requirement of having a new "name, character or use." Thus, the country of origin of the “Garlic Powder E” and the “White Pepper Powder” is the country where the blending process occurred. The “Garlic Powder E” and the “White Pepper Powder” are products of Taiwan and should be clearly marked "Taiwan," "Product of Taiwan" or other similar marking.
Section 14 of the Miscellaneous Trade and Technical Corrections Act of 1996, Pub. L. 104-295, 110 Stat. 3514 (October 11, 1996) amended the country of origin marking statute (19 U.S.C. 1304) to exempt imports of certain specified coffee, tea and spices from the marking requirements of 19 U.S.C. 1304 subsections (a) and (b). Goods classifiable in subheadings 0904.12 and 0904.22 (formerly 0904.20), HTSUS, including the “Black Pepper Granules,” “Black Pepper Powder,” and the “Red Pepper (Chili) Powder” discussed in this ruling, are among the products included in this statutory marking exemption. Therefore, neither these three products nor their containers are required to be marked with the foreign country of origin.
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 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 the email address [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division