OT:RR:NC:N2:231
Ms. Zhenli Wang
Sirio Nutrition Company Ltd
13502 Whittier Boulevard
Whittier, CA 90605
RE: The tariff classification and country of origin of Encapsulated Compound Green Lipped Mussel Oil.
Dear Ms. Wang:
This is in response to your letter dated November 2, 2020, requesting a tariff classification on country of origin determination for “Compound Green Lipped Mussel Oil Vegetarian Softgel.”
You present a scenario whereby live New Zealand Green Lipped Mussel (Perna canaliculus) are placed via a continuous centrifuge, which separates the shell from the meat. The shell is discarded, meat is placed in a refrigerated tank with an unspecified natural anti-oxidant which is intended to preserved the omega-3-fatty acids, lipid fraction and maintain the peroxide levels. The mussel meat is subsequently placed onto freeze drying trays and frozen down to -20º Celsius for 20-22 hours then vacuum dried at low temperatures. The ensuing product is milled into a powder then measured by weight into the extraction vessels to undergo the 2-hour supercritical fluid extraction process. Upon completion of the extraction process, the ensuing oil is blended with turmeric oil, virgin olive oil, and vitamin E then shipped from New Zealand to China where it is encapsulated. The product will be imported into the United States in 10-kilogram foil barrier bags inside a plastic pail.
The applicable subheading for the Compound Green Lipped Mussel Oil Vegetarian Softgel will be 1603.00.9010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Extracts and juices of meat, fish or crustaceans, molluscs or other aquatic invertebrates: Other: Of meat.” The rate of duty is Free.
The "country of origin" is defined in 19 CFR 134.1(b) as "the 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.
The courts have held that 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); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982). 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). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987).
Regarding the present case, freeze-dried powder of New Zealand Green Lipped Mussel (Perna canaliculus) undergoes a supercritical fluid extraction process before it is blended with turmeric oil, virgin olive oil, and vitamin E then subsequently encapsulated in China. We find the processing that occurs in China, i.e., encapsulation, does not constitute a substantial transformation. The country of origin of the finished product is New Zealand.
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 Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division