THE COUNTRY OF ORIGIN MARKING OF CEROTRAG 887 GUM TRAGACANTH POWDER

N302588 April 17, 2019 MAR-2 OT:RR:NC:N2:231 CATEGORY: MARKING Mr. Michael Hensley TBI Brokers, Inc. dba Strix LLC 211 East Main Street Suite C Bozeman, MT 59715 RE: THE COUNTRY OF ORIGIN MARKING OF CEROTRAG 887 GUM TRAGACANTH POWDER Dear Mr. Hensley: This is in response to your letter dated January 16, 2019 requesting a country of origin determination for CEROTRAG 887 Gum Tragacanth Powder imported from Germany on behalf of your client, Ampak Company, Inc. (Larchmont, NY). You have outlined a scenario in which your supplier C. E. Roeper procures Tragacanth gum flakes and ribbons of varying grades derived from the Astragalus Gummifer Labill or another unspecified species of Astragalus trees in Iran. The raw material will be transported to Germany where it will undergo a drying process to eliminate excess moisture content to allow for grinding. The product is granulated to 6.00 millimeters then steamed for 2-5 minutes at a temperature between 105º - 110º Celsius for sterilization purposes and allowed to cool for 1-2 hours at 40º Celsius. Subsequently, the material is blended, homogenized, milled, sieved and filled into 50-kilogram fiber drums. CEROTRAG 887 Gum Tragacanth powder is intended for use as a stabilizer, thickener, or emulsifier in the production of bakery fondant within the food 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 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). This office finds that the Tragacanth gum flakes and ribbons are substantially transformed as a result of the German processing, and that therefore the country of origin of the Tragacanth gum now in powder form as imported into the United States is Germany. The fiber drums should be marked accordingly, e.g., “Product of Germany.” We have been informally advised by the Office of Foreign Assets Control (OFAC) that, in general, the importation into the United States from third countries of goods containing Iranian-origin raw materials or components and transactions relating to such goods is not prohibited by section 560.201 or section 560.206 of the Iranian Transactions and Sanctions Regulations (31 CFR Part 560) if those raw materials or components have been incorporated into manufactured products or substantially transformed in a third country by a person other than a U.S. person.  Based on this information, it would appear that the CEROTRAG 887 Gum Tragacanth powder is admissible into the United States at this time.  For further information on this issue, please contact OFAC at the following website address: www.treas.gov/ofac 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. 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