CLA-2-03:OT:RR:NC:N2:231
Ms. Sky Lan
Clear Ocean Seafood Ltd.
21331 Gordon Way
Richmond, BC V6W 1J9, Canada
RE: The Tariff Classification and Country of Origin of Frozen Raw Bacon Wrapped Scallop Medallions
Dear Ms. Lan:
In your letter, dated June 2, 2022, you requested a classification and country of origin determination.
You have outlined a scenario in which Scallops harvested in Japan are exported frozen and in pieces to China where they are thawed, mixed, and formed into medallions made of scallops and transglutaminase, an additive used to enhance the texture and appearance of processed meats. The medallions are then individually quick frozen (IQF) and packed into five-pound bulk packages and shipped to Canada. In Canada, the frozen scallop medallions are wrapped with fresh bacon that is produced in Canada from pork, water, salt, sodium phosphate, sodium erythorbate, sodium nitrite, and smoke flavor. The finished product, frozen raw bacon wrapped scallop medallions, are then shipped frozen to the United States, and sold to food service providers and retail stores. The relative quantity by weight of each component is fifty percent scallop medallion and fifty percent pork belly bacon.
You seek a determination as to the tariff classification and country of origin of the above-described product.
The applicable subheading for the above-described frozen scallops will be 1605.52.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Crustaceans, molluscs, and other aquatic invertebrates, prepared or preserved; Scallops, including queen scallops: Other.” 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 the World Wide Web at https://hts.usitc.gov/current.
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.
The “country of origin” is defined in 19 C.F.R. § 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; however, for a good of a NAFTA or USMCA country, the marking rules set forth in part 102 of this chapter (hereinafter referred to as the part 102 Rules) will determine the country of origin.”
Pursuant to section 102.0, interim regulations, related to the marking rules, tariff-rate quotas, and other USMCA provisions, published in the Federal Register on July 6, 2021 (86 FR 35566), the rules set forth in §§ 102.1 through 102.18 and 102.20 determine the country of origin for marking purposes with respect to goods imported from Canada and Mexico. Section 102.11 provides a required hierarchy for determining the country of origin of a good for marking purposes, with the exception of textile goods which are subject to the provisions of 19 C.F.R. § 102.21. See 19 C.F.R. § 102.11.
Applied in sequential order, 19 C.F.R. § 102.11(a) provides that the country of origin of a good is the country in which:
(1) The good is wholly obtained or produced;
(2) The good is produced exclusively from domestic materials; or
(3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Part 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
The Frozen Raw Bacon Wrapped Scallop Medallions are neither “wholly obtained or produced” nor “produced exclusively from domestic materials.” Therefore, paragraphs (a)(1) and (a)(2) cannot be used to determine the country of origin of the Scallops, and paragraph (a)(3) must be applied next to determine the origin of the finished article.
The applicable tariff shift requirement in section 102.20 for the merchandise at issue classifiable in subheading 1605.52, HTSUS, consist of the following:
A change to heading 1601 through 1605 from any other chapter, except from smoked products of heading 0306 through 0308.
Since the foreign material in the product, scallop medallions, is classified in heading 0307, the tariff shift rule in 19 C.F.R. § 102.20(a)(3) is met.
Accordingly, the country of origin for marking purposes of Frozen Raw Bacon Wrapped Scallop Medallions, classified under subheading 1605.52.6000, HTSUS, is Canada.
Please note that seafood is subject to the Mandatory Country of Origin Labeling (COOL) requirements administered by the USDA’s Agricultural Marketing Service (AMS). We advise you to check with that agency for their further guidance on your scenario. Contact information for AMS is as follows:
USDA-AMS-LS-SAT
Room 2607-S, Stop 0254
1400 Independence Avenue, SW
Washington, DC 20250-0254
Tel. 202.720.4486
Website: www.ams.usda.gov/COOL
Email address for inquiries: [email protected]
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 the 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 Title 19 of the Code of Federal Regulations (19 C.F.R. Part 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 questions regarding the ruling, contact National Import Specialist Ekeng Manczuk at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division