The country of origin of Encapsulated Oil in Vegetarian Softgel Capsules.

N313262 August 11, 2020 OT:RR:NC:N:N2:231 CATEGORY: Country of Origin Jing Zhang, Esq. Mayer Brown LLP 1999 K Street, N.W. Washington DC 20006 RE: The country of origin of Encapsulated Oil in Vegetarian Softgel Capsules. Dear Ms. Zhang: This is in response to your letter dated July 16, 2020, requesting a country of origin determination on behalf of your client, Sirio Nutrition Co., Ltd (Irvine, CA) for “Evening Primrose Oil Vegetarian Softgel” and “Flaxseed Oil Vegetarian Softgel.” You present a scenario whereby evening primrose seeds and flaxseeds are cold pressed, and the ensuing oils are filtrated and where applicable, refined in the United Kingdom. Both types of oils are shipped to China where they are placed in separate blending tanks and stirred for even distribution prior to the encapsulation process. The Evening Primrose Oil Vegetarian Softgel Capsules and Flaxseed Oil Vegetarian Softgel Capsules will be imported into the United States in bulk sized quantities.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). Concerning the present case whereby Evening Primrose seeds and Flaxseeds are cold pressed and the ensuing oil is filtrated, and where applicable, refined in the United Kingdom then subsequently encapsulated in China; we find the processing that occurs in China, i.e., encapsulation, does not constitute a substantial transformation. The country of origin of the finished product is the United Kingdom. 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