CLA-2-21:OT:RR:NC:N2:228
Mr. Yunming Gu
Wismettac Asian Foods, Inc.
13409 Orden Drive Santa Fe Springs, CA 90670
RE: The tariff classification and country of origin of a sauce
Dear Mr. Gu:
In your letter dated June 2, 2023, you requested a tariff classification and country of origin ruling.
An ingredients breakdown, manufacturing flowchart, and a picture of the product accompanied your inquiry.
The subject merchandise, “Kimchee Sauce,” is described as a liquid sauce that will be imported in an ambient condition and sold primarily to the food service industry. The product is said to contain tap water (Japan), high fructose liquid sugar (Japan), salt (Japan), garlic (China), apple pulp (Japan), sodium L-glutamate (Brazil), brewed vinegar (Brazil), mandarin orange pulp (Japan), paprika (Spain), fermented vegetables (China), chili pepper (China), bonito extract (Japan), squid extract (Japan), soy protein hydrolysate (U.S.), dried bonito (Indonesia), citric acid (Japan), ginger (China), konbu (Japan), xanthan gum (U.S.), sodium 5-inosinate (Thailand) and paprika pigment (Japan). The product is said to be manufactured in Japan by mixing the raw materials with seasoning, removing metal, filling into 1200 gram (42.32 ounce) plastic containers, capping, labeling, and boxing.
The applicable subheading for the product, “Kimchee Sauce,” will be 2103.90.9091, Harmonized Tariff Schedule of the United States (HTSUS), which provides for sauces and preparations therefor...other...other...other. The general rate of duty will be 6.4 percent 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 the World Wide Web at https://hts.usitc.gov/current.
As defined in 19 CFR 134.1(b), “country of origin” means 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 change the country of origin of the article. 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. A substantial transformation will not result from a minor manufacturing or combining process that leaves the identity of the article intact. See United States v. Gibson-Thomsen Co., 27 C.C.P.A. 267 (1940); and National Juice Products Association v. United States, 628 F. Supp. 978 (Ct. Int’l Trade 1986).
In this case, the mixture of pre-formulated ingredients to create the finished sauce results in a substantial transformation of the raw materials. The ingredients have lost their separate identities and have become an integral part of a new product, a food preparation. This satisfies the substantial transformation requirement of having a new "name, character or use." Accordingly, the country of origin of the product is the country where the manufacture into a finished sauce has occurred. Kimchee Sauce is a product of Japan and should be clearly marked "Japan," "Product of Japan" or other similar marking.
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 and Border Protection 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, please contact National Import Specialist Timothy Petrulonis at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division