The tariff classification and country of origin of imitation bacon from Taiwan

N312216 June 15, 2020 CLA-2-21:OT:RR:NC:N2:228 CATEGORY: Classification, Country of Origin TARIFF NO.: 2106.90.9895 Mr. Matthew Williams John A. Steer Company 1227 North 4th Street Philadelphia, PA 19122 RE: The tariff classification and country of origin of imitation bacon from Taiwan Dear Mr. Williams: In your letter dated May 5, 2020, you requested a tariff classification ruling on behalf of your client, Ice Box Foods, Inc., CA. An ingredients breakdown, a photocopy of the packaging, a narrative description of the manufacturing process and a manufacturing flowchart were submitted with your letter for the product. The Frozen Vegan Bacon is said to contain approximately 54 percent water, 19 percent soy protein from Taiwan and China, 17 percent soybean oil from Taiwan, 3 percent corn starch from Italy, 1 percent salt from Taiwan, 1 percent hydrolyzed vegetable protein from Switzerland, and trace amounts of yeast extract from France, sugar from Taiwan, natural meat flavor and smoke flavor from Germany, the United States and France, vegetable extract from Canada, protease from Germany, colorant from Japan, Germany and India. The textured soy protein is washed, filtered, dehydrated and blended with the soybean oil, corn starch, vegetable protein, and all remaining additives. The product is molded into the desired shapes, cooked for 3.5 hours at 90° C, sliced and packaged to the customer’s requirements, and frozen at -18° C. The product is packaged in plastic bags put up for retail sale in cartons containing 12 bags, 2.59 kilograms, net packed.  The applicable subheading for the product will be 2106.90.9895, Harmonized Tariff Schedule of the United States (HTSUS), which provides for food preparations not elsewhere specified or included . . . other . . . other . . . frozen. The general rate of duty will be 6.4 percent ad valorem. 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. Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. As defined in 19 CFR 134.1(b), "country of origin" means the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to change the country of origin of the article. A substantial transformation is said to occur when, after further processing or manufacture, an article emerges having a new name, character, or use different from that possessed by the article prior to processing. See Texas Instruments, Inc. v. United States, 69 CCPA 152, 681 F. 2d 778 (1982).19 CFR 134.35 and Headquarters Ruling Letters (HRLs) 555982, dated August 2, 1991. 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 this instance, the imported product has been processed in Taiwan to create the finished product, which results in a substantial transformation. The foreign ingredients lost their separate identities and became an integral part of a new product. Therefore, the Frozen Vegan Bacon is considered a product of the Taiwan for origin and marking purposes at time of importation into the United States. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current. 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 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 Josephine Heaning at josephine.heaning@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division