The country of origin of olives.

N308088 December 23, 2019 CLA-2-20:OT:RR:NC:N2:228 CATEGORY: Country of Origin Mr. Michael J. Ford BDP International 510 Walnut Street Philadelphia, PA 19106 RE: The country of origin of olives. Dear Mr. Ford: In your letter dated December 4, 2019, you requested a country of origin ruling on behalf of your client, Bell-Carter Foods, LLC, CA. An ingredients breakdown and a narrative description of the manufacturing process were provided with your inquiry. The first item is olives that are grown in Spain where they are harvested, cured in sodium hydroxide and water, and fermented in tanks containing water and salt. After repacking into barrels containing water, salt and lactic acid brine, they are sent to Portugal to be pitted, sliced and/or stuffed. The olives are then shipped to Spain where they are bottled, pasteurized and packaged as finished goods to be sent to their final destination, the United States. The second item is raw whole olives that are grown and harvested in Spain, and shipped to Portugal where they are cured in sodium hydroxide and water, fermented in tanks containing water and salt, and pitted, sliced and/or stuffed with pimentos. After repacking the processed olives into barrels containing water, salt and lactic acid brine, they are shipped to Spain where they are bottled, pasteurized and packaged as finished goods to be sent to their final destination, the United States. The third item is whole, pitted, sliced, or broken olives grown, harvested, cured, and fermented in Portugal where they are put in salt brine barrels and sent to Spain for bottling, pasteurized and packaged as finished goods to be sent 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 processes performed in Spain and Portugal do not change the origin of the olives because the processes in Spain and Portugal do not result in a substantial transformation of the olives. In short, the process begins with olives and ends with olives. As a result, the whole, stuffed, sliced, or broken olives will be considered a product of the country in which the olives are grown, namely Spain or Portugal.  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