CLA-2-03:OT:RR:NC:N2:231

Ms. Deborah Scott
Omega CHB International, Inc.
5246 West 111 Street
Los Angeles, CA 90045

RE: The Tariff Classification and Country of Origin of Frozen Greenland Halibut

Dear Ms. Scott:

In your letter dated March 14, 2024, you requested a tariff classification ruling and country of origin determination on behalf of your client, Pacific American Fish Company (Vernon, CA).

You have outlined a scenario in which whole, uncleaned Greenland Halibut (Reinhardtius hippoglossoides) will be harvested from the Food and Agriculture Organization (FAO) of the United Nations Major Fishing Area 21 (Northwest Atlantic Sea) by a Spanish flagged vessel. Initial processing will occur at sea on the Spanish vessel, where the fish will be washed, headed, gutted, and tailed. The halibut will then be frozen and exported to China. In China, the frozen halibut will undergo final processing to remove fins, cut into steaks, and packaged. Each 20-ounce halibut steak will be 17-19 centimeters in length, 5-6 centimeters in width, and 1-2 centimeters in thickness. The halibut steaks will then be shipped to the United States in 25-pound cases for sale to food service providers, wholesalers, and retail markets.

You seek a determination as to the tariff classification and country of origin of the above-described product.

The applicable subheading for the Frozen Greenland Halibut (Reinhardtius hippoglossoides) will be 0304.43.0025, Harmonized Tariff Schedule of the United States (HTSUS), which provides for: “Fish fillets and other fish meat (whether or not minced), fresh, chilled or frozen: Flat Fish (Pleuronectidae, Bothidae, Cynoglossidae, Soleidae, Scophthalmidae, and Citharidae): Greenland turbot (Greenland halibut) (Reinhardtius hippoglossoides).” 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 at https://hts.usitc.gov/.

Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the Chapter 99 provisions covering exceptions to the reciprocal tariffs. Products of China, including Hong Kong and Macau, will be assessed an additional ad valorem rate of duty of 125 percent. Products from all other countries will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e., 9903.01.25, in addition to subheading 0304.43.0025, HTSUS, listed above.

When determining the country of origin, 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).

A specialized rule governs seafood articles such that, unless the animal was caught or harvested within the territorial waters of a country, the country of origin follows the flag of the catching vessel. This rule of origin, the “Law of the Flag,” was affirmed by the Court of International Trade in Koru North America v. United States, 701 F. Supp. 229 (CIT 1988). The court noted that “in international law, a ship on the high seas is considered foreign territory, functionally, ‘a floating island of the country to which [it] belongs’.”

Regarding the above-described cleaned frozen halibut product, this office finds that the article is substantially transformed due to processing that is performed in China. Accordingly, based on the information presented, the halibut is a product of China.

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]

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 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 control number indicated above should be provided with 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