The country of origin of Frozen Precooked Tuna Loins

N306414 October 23, 2019 OT:RR:NC:N2:231 CATEGORY: Country of Origin Mr. Raffaele Natale American Shipping Company Inc. 250 Moonachie Road Moonachie, NJ 07094 RE: The country of origin of Frozen Precooked Tuna Loins Dear Mr. Natale: In your letter dated September 25, 2019, you requested a country of origin ruling determination on “Frozen Precooked Tuna Loins” on behalf of your client, Tri-Union Seafoods LLC, DBA Chicken of the Sea International (El Segundo, CA). The merchandise under consideration is Albacore tuna (Thunnus alalunga) caught in Thailand from which the head, tail, fins, skin and guts will be removed. The fish is precooked by steaming, processed into loins then vacuum-sealed in bags with a net weight of 6.8 kilogram and frozen. The finished product was initially exported to the United States; however, it has been exported to Ecuador where the product was defrosted then repackaged into retort pouches with a net weight of 2.6 ounces and frozen. The “Frozen Precooked Tuna Loins” will be imported to the United States for retail sale to supermarkets. The "country of origin" is defined in 19 CFR 134.1(b) as "the 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 this part. The courts have held that 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); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).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). Substantial transformation determinations are based on the totality of the evidence. See Headquarters Ruling (HQ) W968434, date January 17, 2007, citing Ferrostaal Metals Corp. v. United States, 11 CIT 470, 478, 664 F. Supp. 535, 541 (1987). In Koru North America v. United States, 701 F. Supp. 229 (CIT 1988), the court considered whether the processing of headed and gutted fish in South Korea by thawing, skinning, boning, trimming, freezing, and packaging constituted a substantial transformation. The court concluded that the processing performed in South Korea into “quick- frozen” fillets substantially transformed the headed fish because there was a change in name and character. The court noted that while the fish arrived in South Korea with the look of a whole fish, when they left they no longer possessed the essential shape of a fish. The fillets were considered discrete commercial goods and had a different tariff classification. In the present instance, Albacore tuna, which is harvested in Thailand, is stripped of the head, tail, fins, skin and guts. The fish is precooked by steaming, processed into loins, vacuum-sealed in 6.8 kilogram bags then frozen. The finished product was initially shipped to the United States before it was exported to Ecuador where it was defrosted and repackaged into 2.6-ounce retort pouches then frozen. The finished product will subsequently be shipped to the United States for retail sale. We find that the tuna has not been substantially transformed due to the processing in Ecuador, and that therefore the country of origin of the “Frozen Precooked Tuna Loins,” is Thailand. 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: COOL@usda.gov 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 the Customs Regulations (19 CFR Part 177). 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 Ekeng Manczuk at ekeng.b.manczuk@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division