OT:RR:NC:N2:231
Mr. Richard Mojica
Miller & Chevalier Chartered
900 16th St NW
Washington, DC 20006
RE: The Country of Origin of Beet Concentrate Powder
Dear Mr. Mojica:
In your letter dated July 26, 2024, you requested a country of origin determination for Beet Concentrate Powder on behalf of your client, Van Drunen Farms (Chicago, IL).
You have presented a scenario whereby your client proposes to import beet concentrate powder made from raw beets grown in either the United States or France, since your client has a supplier in each country. The beet concentrate powder is derived from raw beets through a multi-stage process that involves concentrating key nutrients in raw beets while removing sugar, water, fiber, and other water-soluble elements. You state that the first four stages of production take place either entirely in the United States or in France, apart from a process called chromatography, which further concentrates certain nutrients in the beet concentrate and occurs in China.
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 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 test for determining whether a substantial transformation will occur is whether an article emerges from a process with a new name, character or use, different from that possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 69 C.C.P.A. 151 (1982).
This determination is based on the totality of the evidence. See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff'd, 989 F.2d 1201 (Fed. Cir. 1993).
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 processing performed in China is minor and does not result in a product with a new name, use, or character.
Based on the submitted information, the country of origin of the subject merchandise, Beet Concentrate Powder, is either the United States or France, depending on where the beets are grown and processed into a beet concentrate, because either of those two countries is where the beets are considered to be substantially transformed. No substantial transformation occurs in China, where the beet concentrate is simply further concentrated and spray dried, as the product enters China as a beet concentrate and remains a beet concentrate after processing.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 C.F.R. 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
The question of whether the merchandise at issue may be marked with a phrase such as Product of U.S.A. is under the jurisdiction of the U.S. Federal Trade Commission, Bureau of Consumer Protection, Division of Enforcement, which may be contacted for advice at 600 Pennsylvania Avenue N.W., Washington, D.C. 20580, or through the FTC's website at http://www.ftc.gov.
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 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 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