CLA-2-20:OT:RR:NC:N2:228
Ms. Colleen Campbell
Bay Valley Foods
1160 Parkway Drive
North East, PA 16428-6512
RE: The country of origin of pickles
Dear Ms. Campbell:
In your letter dated February 17, 2015 you requested a country of origin ruling for gherkins from India after further processing in the United States.
You state the plant receives 59 gallon barrels of fermented gherkins in approximately 9-11 percent salt solution from your India supplier. The barrels contain approximately 6 bushels or 300 pounds of gherkins. Prior to using in production the gherkins must be desalted to approximately 2 to 3 percent salt. This is done by transferring 300 to 450 bushels of gherkins to a large tank that is half full of water. The gherkins and water are in a 50/50 ratio in the desalt tank. The water is heated to 100 degrees Fahrenheit. The desalt process takes 24 to 48 hours and during that time they are gently circulated throughout the tank by air agitation. This aids in the equilibration and desalt process. After the gherkins are desalted they are ready for production. They are transferred from the desalt tank through a flume pipe system to the production line via water from the desalt tank. After the gherkins are inspected they are conveyed to the filler and added to the jar containers automatically. From the filler the jars are conveyed through a metal detector to the automatic briner and then are vacuum sealed at the capper. The brine contains high fructose corn syrup, white vinegar, salt, water, calcium chloride, spice flavor liquid, spice oil, caramel color, blue 1, yellow 5, yellow 6, and turmeric. Once capped, the jars are pasteurized to approximately 168-172 degrees Fahrenheit and then cooled to 95 to 105 degrees Fahrenheit. They are conveyed to the labeler, date coder, and cased in either trays or full wrap boxes. Finished product is shipped to the warehouse. After going through these processes the gherkins are considered pickles. You state that you would like to know if enough transformation takes place in the United States to mark the pickles as country of origin U.S.
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, CBP Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304.
Section 134.1(b) of the regulations, defines "country of origin" as:
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 other country the "country of origin" within this Part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.
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 instance, the imported product gherkins undergoes desalting, canning (includes filling gherkins into jars with brine), pasteurizing, labeling, and packing in the United States. The U.S. processes do not result in a substantial transformation since the final product pickles retains the essential identity and character of the imported product.
Applying the Marking Rules set forth in section 304 of the Tariff Act of 1930, as amended and Part 134 of the CBP Regulations, we find that the country of origin of the pickles is India.
This ruling is being issued under the provisions of Part 177 of the CBP 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 Bruce N. Hadley, Jr. at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division