THE COUNTRY OF ORIGIN MARKING OF SALTED HOG CASINGS

N302053 February 8, 2019 MAR-2 OT:RR:NC:N2:231 CATEGORY: MARKING Mr. Waymond Shih Denison Casing Co. 9060 Telstar Avenue Suite No. 220 El Monte, CA 91731 RE: THE COUNTRY OF ORIGIN MARKING OF SALTED HOG CASINGS Dear Mr. Shih: This is in response to your letter dated December 3, 2018 requesting a country-of-origin ruling on Salted Hog Casings. You outline a scenario where hog intestines are obtained from a slaughterhouse in Germany, sorted according to size then cleaned to eliminate manure, intestinal mucosa, fat, threads and animal fluids. The ensuing product is placed in barrels that contain a salt solution then shipped to China for further processing. In China, the casings are removed from the salt solution, rinsed and soaked in fresh water then hand massaged to separate the strands and prevent dry spots. The casings are subsequently placed in warmer water to generate natural fat making the casings suitable to be placed over a stuffing horn. The pre-tubed and pre-flushed casings which are sold in bundles and hanks are packed in 55-gallon containers comprising of a highly concentrated salt liquid solution. Salted Hog Casings are intended for the manufacturing of hot dogs or sausages in the food service industry. 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.As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article’s container until it reaches the ultimate purchaser unless deliberately removed is acceptable. Part 134, CBP Regulations (19 C.F.R. §134) implements the country of origin marking requirements of 19 U.S.C. §1304. 19 C.F.R. §134.1(b) defines “country of origin” as: [T]he 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 [the marking regulations]…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 the case of the Salted Hog Casings, we find that the product is not substantially transformed as a result of the processing in China. Accordingly, we find that the products retain their initial country-of-origin status for CBP marking purposes. Therefore, the packages of processed Salted Hog Casings entering the United States must be marked to indicate that their contents are products of the original country, e.g., “Product of Germany.” You made a request in your submission for an unspecified free trade agreement determination. We are unable to make a determination on the applicability of a free trade agreement since neither Germany nor China is part of any existing free trade agreement program. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR Part 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 Ekeng Manczuk at ekeng.b.manczuk@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division