The country of origin of Hempseed Oil Softgel Capsules.

N313543 August 12, 2020 OT:RR:NC: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 Hempseed Oil 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 “Hempseed Oil Softgel Capsules.” You present a scenario whereby hempseeds are cold pressed and the ensuing oil is filtrated, and where applicable refined and Vitamin E is added. The oil is shipped from the United Kingdom to China where it is placed in a blending tank and stirred for even distribution prior to the encapsulation process. The Hempseed Oil 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). Regarding the present case whereby hempseeds are cold pressed and the ensuing oil is filtrated, and where applicable refined, and Vitamin E is added 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