CLA-2-21:OT:RR:NC:N5:433
Andy Lee
D&A Customs Services Inc.
152 W. Walnut Street, Suite 260 Gardena, CA 90248
RE: The tariff classification and country of origin of a miscellaneous edible preparation.
Dear Mr. Lee:
In your letter dated August 23, 2024, you request a binding tariff classification and a country of origin ruling on behalf of US Pharmatech Inc. In lieu of samples, illustrative literature, a product description, and manufacturing processes were provided.
The item Branched-Chain Amino Acid (BCAA) Powder, is a miscellaneous edible preparation for human consumption. The preparation is a mixture and is not derived of a single ingredient; the ingredient composition is a formulation of leucine (45-55%), isoleucine (22.5-27.5%), valine (22.5-27.5%) and sunflower lecithin (0.5-1.0%). The leucine, isoleucine, and valine are obtained by the fermentation of corn syrup. The mixture will contain no cocoa.
In the condition at the time of U.S. importation, the subject merchandise is an intermediary product, presented at an ambient temperature, and is not readily suitable for immediate human consumption. After U.S. importation, the subject merchandise will undergo separate and distinct manufacturing operations along with the inclusion of other ingredients. The documentation provided states, [T]he article will be further processed into various product forms, e.g. Powders, Capsules, Tablets, Beverages, Gummies, Protein bars, etc. and [T]he article will be further processed with other ingredients to turn into different forms of finished products, e.g. Powders, Capsules, Tablets, Beverages, Gummies, Protein bars, etc. The final manufactured products will be made suitable for human consumption.
The applicable subheading for the subject merchandise when processed as a beverage preparation will be 2106.90.9973, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Food preparations not elsewhere specified or included: Other: Other: Other: Other: Other: Other: Preparations for the manufacture of beverages: Other. The rate of duty will be 6.4% ad valorum.
The applicable subheading for the subject merchandise when not processed as a beverage preparation (capsules, tablets, gummies, protein bars, etc.) will be 2106.90.9998, HTSUS, which provides for Food preparations not elsewhere specified or included: Other: Other: Other: Other: Other: Other: Other: Other: Other: Other. The rate of duty will be 6.4% ad valorum.
Sourcing Scenario:
The ruling request outlines an operation wherein the raw material ingredients (leucine, isoleucine, valine, sunflower lecithin) will be sourced from China. The ingredients will be shipped and exported to South Korea. In South Korea, the ingredients will undergo manufacture, inspection, packaging, and then exportation to the United States.
Country of Origin:
Section 134.1(b), Customs Regulations (19 C.F.R. 134.1(b)) defines country of origin 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. A substantial transformation occurs when articles lose their identity and become articles having a new name, character, or use. No one factor is decisive.
Per your submission, in South Korea, the Chinese leucine, isoleucine, valine, and the sunflower lecithin raw materials will undergo (1.) milling, sieving, mixing, classification, and drying in specific ratios, intervals, and temperatures; (2.) the formulation will undergo additional mixing and sieving to determine appearance, particle size, and water content percentages; (3.) the formulation will then undergo additional mixing and sieving to determine additional appearance and yield percentages. In South Korea, the formulation will then be inspected and packaged for export to the United States.
In the instant case, the Chinese raw material ingredients lose their identity during manufacture and undergo a substantial transformation in South Korea to become a BCAA formulation, thereby, taking on a new name, character, and identity. In view of these facts, the country of origin for the BCAA formulation is conferred in South Korea.
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 at https://hts.usitc.gov/current.
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.
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 Title 19, Code of Federal Regulations (CFR), Section 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. In the event that 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.
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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division