The tariff classification and country of origin of a peanuts and cranberries mix from Colombia

N269693 November 4, 2015 CLA-2-20:OT:RR:NC:N2:228 CATEGORY: Classification TARIFF NO.: 2008.97.1040; 2008.97.9094 Mr. Gustavo Llano Domingez Manitoba Ltda Cra 8 No 34 28 Cali, Colombia 760001 RE: The tariff classification and country of origin of a peanuts and cranberries mix from Colombia Dear Mr. Llano Domingez: In your letter dated October 14, 2015, you requested a tariff classification and country of origin ruling. An ingredients breakdown, technical data, and a picture of the front packaging accompanied your letter. A description of the manufacturing process and additional information were provided via eMail dated October 20, and October 30, 2015. The mix is said to contain approximately 68 percent salted peanuts (peanuts, salt, vegetable oil, and antioxidant), and 38 percent sweetened dried cranberries (cranberries, sugar, citric acid, sunflower oil, and elderberry juice concentrate). You state that the origin of the raw peanuts and sweetened dried cranberries is the United States. During the manufacturing process in Colombia, the raw peanuts are fried, salted and mixed in with vegetable oil, then mixed with the cranberries. The mix is packaged in bags in quantities of 20, 50, 150, 200, and 370 grams. The applicable subheading for the peanuts and cranberries mix, when in airtight containers, will be 2008.97.1040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included . . . other, including mixtures other than those of subheading 2008.19 . . . mixtures . . . in airtight containers and not containing apricots, citrus fruits, peaches or pears . . . other. The general rate of duty will be 5.6 percent ad valorem. When not in airtight containers, the applicable subheading for the peanuts and cranberries mix will be 2008.97.9094, HTSUS, which provides for fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included . . . other, including mixtures other than those of subheading 2008.19 . . . mixtures . . . other . . . other . . . other. The general rate of duty will be 14.9 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 http://www.usitc.gov/tata/hts/. 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. Part 134, CBP Regulations (19 C.F.R. Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. § 1304. Section 134.1(b) of the regulations, defines "country of origin" as: the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 this Part . . . . 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. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff’d, 989 F. 2d 1201 (Fed. Cir. 1993). However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff’d, 702 F.2d 1022 (Fed. Cir. 1983). In this case, we find that the frying and salting process in Colombia does not constitute a substantial transformation of the raw peanuts into a new or different article of commerce. Neither is merely mixing the salted peanuts and the sweetened dried cranberries considered a substantial transformation. Each commodity is not transformed into a different article of commerce with a new name, character or use merely by the described process. Each commodity maintains its original identity after mixture. Applying the Marking Rules set forth in section 304 of the Tariff Act of 1930, as amended and Part 134 of the CBP Regulations, we find that the country of origin of the mix is the United States. Goods of U.S. origin are excepted from the country of origin marking requirements of 19 U.S.C. 1304. In this regard, it should be noted that the marking of articles in whole or in part as “Product of U.S.A.” is a matter within the jurisdiction of the Federal Trade Commission (FTC) and we suggest that you contact that agency for a determination. 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 ww.fda.gov/oc/bioterrorism/bioact.html. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Bruce N. Hadley, Jr. at bruce.hadleyjr@cbp.dhs.gov. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division