The country of origin of potato products from China

N350142 July 9, 2025 OT:RR:NC:N5:228 CATEGORY: Origin; Marking Nicole Crimm Daiso USA LLC 1900 S State College Boulevard, Suite 500 Anaheim, CA 92806 RE: The country of origin of potato products from China Dear Ms. Crimm: In your letter dated June 12, 2025, you requested a country of origin and marking ruling. An ingredients breakdown, narrative description of the manufacturing process and pictures of the product label accompanied your letter. The subject merchandise, “Wasabi Salt French Fries,” and “Garlic Butter Potato Snacks,” are described as potato-based snacks. Both products are said to be sold in single serving sizes. The wasabi salt french fries are sold in a 1.76 oz. sizes while the garlic butter potato snacks are sold in a 1.52 oz. sizes. The manufacturing of the products commences with potatoes that are grown in China. Once harvested, the manufacturing process continues in a Chinese factory where the potatoes are cut into French fry shapes or thick potato slices and then fried in vegetable oil. The products are then shipped to a factory in Japan where they are seasoned and packaged. Product one, “Wasabi Salt French Fries,” includes an ingredients breakdown. The ingredients sourced from China include potatoes (89 percent) and vegetable oil (7 percent). Product two, “Garlic Butter Potato Snacks,” includes an ingredients breakdown. The ingredients sourced from China include potatoes (61 percent) and vegetable oil (33 percent). The balance of the ingredients in both products consists of seasoning sourced from Japan, Malaysia, Thailand, United States, Canada, Germany, Netherlands, Vietnam, India, France, Brazil, Morocco, and the Philippines. Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that unless excepted, every article of foreign origin imported into the United States 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 United States, the English name of the country of origin of the article. Congressional intent in enacting 19 U.S.C. 1304 was “that the ultimate purchaser should be able to know by an inspection of the marking on the imported goods the country of which the goods is the product. The evident purpose is to mark the goods so that at the time of purchase the ultimate purchaser may, by knowing where the goods were produced, be able to buy or refuse to buy them, if such marking should influence his will.” See United States v. Friedlander & Co., 27 C.C.P.A. 297, 302 (1940). Part 134 of the U.S. Customs and Border Protection (“CBP”) Regulations (19 CFR 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.1(b), CBP Regulations (19 CFR 134.1(b)), defines “country of origin” 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 the marking laws and regulations. A substantial transformation occurs when, as a result of manufacturing process, a new and different article emerges, having a distinct name, character or use, which is different from that originally possessed by the article or material before being subjected to the manufacturing process. See United States v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940). In this case, the manufacturing process performed in Japan, which consists of seasoning the fries and chips would not effect a substantial transformation. Accordingly, the products will be considered a product of the country in which the potatoes are grown and harvested, which in this case is China. In your request, you stated the products being shipped to the United States will have labels added to the front and back of the packaging to make them compliant with FDA and other United States regulations. You provided photos of both the original Japanese packaging and U.S. labels. Product one includes a proposed label with the proper language provided. Product two includes a proposed label with the proper language provided. In both scenarios, the labeling describes that the subject merchandise is a product of China and is seasoned and packed in Japan. The proposed marking on the product label as set forth will satisfy the marking requirements of 19 U.S.C. §1304 and 19 CFR Part 134. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Timothy Petrulonis at timothy.petrulonis@cbp.dhs.gov. Sincerely, (for) James Forkan Acting Director National Commodity Specialist Division