The country of origin of green olives from Greece and Egypt

N307874 December 11, 2019 CLA-2-20:OT:RR:NC:N2:228 CATEGORY: Country of Origin Mr. Raffaele Natale American Shipping Co. Inc. 250 Moonachie Road Moonachie, NJ 07074 RE: The country of origin of green olives from Greece and Egypt Dear Mr. Natale: In your letter dated November 22, 2019, you requested a country of origin ruling on behalf of your client, Schreiber Foods International Inc. An ingredients breakdown and a narrative description of the manufacturing process were provided with your inquiry. The green olives are grown in Greece or Egypt where they are harvested and cleaned, cured in brine solution, packed in brine-filled drums and shipped to Spain where they are pitted, sliced or stuffed with a pimento paste. After repackaging, the pitted stuffed and unstuffed green olives are shipped in PET bottles with brine, 1 gallon, net packed, to their final destination, the United States. 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). The pitting, stuffing and slicing process performed in Spain does not change the origin of the green olives because the process in Spain does not result in a substantial transformation of the green olives. In short, the process begins with green olives and ends with green olives. As a result, the stuffed and sliced green olives will be considered a product of the country in which the olives are grown, namely Greece or Egypt.  This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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, Steven A. Mack Director National Commodity Specialist Division