CLA-2-11:OT:RR:NC:N5:231
Mr. Andy Lee
D & A Customs Services Inc.
152 W. Walnut Street
Suite No. 260
Gardena, CA 90248
RE: The Tariff Classification and Country of Origin of Inulin Powder
Dear Mr. Lee:
In your letter, dated November 14, 2024, you requested a tariff classification and country of origin determination on behalf of your client, US Pharmatech Inc. (Cerritos, CA).
The subject merchandise is Inulin Powder. You have outlined a scenario whereby chicory extract powder will be exported from China to South Korea. In South Korea, the product will undergo hot water dissolution, extraction, filtration, purification, themeric treatment, spray drying, then sieving to allow the finished product to meet food grade standard. The resultant Inulin Powder will be packed in 20-kilogram polyethylene bags for shipping to the United States.
The applicable subheading for the Inulin Powder will be 1108.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Starches; Inulin: inulin.” The rate of duty will be 2.6 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 at https://hts.usitc.gov/.
When determining the country of origin for purposes of applying current trade remedies under Section 301, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. 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, 681 F.2d 778 (C.C.P.A. 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)
Regarding the above-described product, this office finds that the article is substantially transformed due to processing that is performed in South Korea. Accordingly, based on the information presented, the inulin is a product of South Korea.
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 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 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 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. Part177).
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 Ekeng Manczuk at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division